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[House Report 112-493]
[From the U.S. Government Publishing Office]

112th Congress 							 Report
 2d Session             HOUSE OF REPRESENTATIVES                112-493
_______________________________________________________________________

                                     

 
                         DEPARTMENT OF DEFENSE
                       APPROPRIATIONS BILL, 2013

                               ----------                              

                              R E P O R T

                                 of the

                      COMMITTEE ON APPROPRIATIONS

                             together with

                            ADDITIONAL VIEWS

                        [TO ACCOMPANY H.R. 5856]

                                     

                                     

  May 25, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

           

112th Congress 							 Report
 2d Session             HOUSE OF REPRESENTATIVES                112-493
_______________________________________________________________________

                                     

                         DEPARTMENT OF DEFENSE

                       APPROPRIATIONS BILL, 2013

                               __________

                              R E P O R T

                                 of the

                      COMMITTEE ON APPROPRIATIONS

                             together with

                            ADDITIONAL VIEWS

                        [TO ACCOMPANY H.R. 5856]

                                     

                                     

  May 25, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
                            C O N T E N T S

                              ----------                              
                                                                   Page
Bill Totals......................................................     1
Committee Budget Review Process..................................     3
Introduction.....................................................     3
Fiscal Management................................................     3
Competition......................................................     5
Conferences......................................................     5
Funding Increases................................................     5
Committee Recommendations by Major Category......................     5
    Active, Reserve and National Guard Military Personnel........     5
    Operation and Maintenance....................................     6
    Procurement..................................................     6
    Research, Development, Test and Evaluation...................     7
    Special Operations Command Critical Needs....................     8
    Defense Health Program.......................................     8
    Overseas Contingency Operations..............................     8
    Classified Programs..........................................     8
Forces to be Supported...........................................     9
    Department of the Army.......................................     9
    Department of the Navy.......................................    10
    Department of the Air Force..................................    11
        Air Force Reductions in Force Structure & Reserve 
          Component Impacts......................................    11
TITLE I. MILITARY PERSONNEL......................................    13
    Military Personnel Overview..................................    15
        Summary of End Strength..................................    15
        Overall Active End Strength..............................    15
        Overall Selected Reserve End Strength....................    15
        Full-Time Support Strengths..............................    16
        Military Personnel Transfer Authority....................    17
        Reduction of Troop End Strength..........................    17
        Retroactive Stop Loss Special Pay Program................    18
        Suicide Prevention Training and Outreach.................    18
        Sexual Assault Prevention and Response...................    19
        Hazing in the Armed Forces...............................    19
        Minority Outreach........................................    20
    Military Personnel, Army.....................................    20
        Army Military Personnel Funding Shortfall................    24
    Military Personnel, Navy.....................................    24
        Littoral Combat Ship Manning.............................    28
    Military Personnel, Marine Corps.............................    28
    Military Personnel, Air Force................................    32
        Creech Air Force Base Incentive Pay......................    36
        Air Force Base Family Housing Privatization..............    36
    Reserve Personnel, Army......................................    37
    Reserve Personnel, Navy......................................    40
    Reserve Personnel, Marine Corps..............................    43
    Reserve Personnel, Air Force.................................    46
    National Guard Personnel, Army...............................    49
    National Guard Personnel, Air Force..........................    52
TITLE II. OPERATION AND MAINTENANCE..............................    55
    Restoration of Funding for Unrealistic Efficiency Savings....    57
    Operation and Maintenance Reprogrammings.....................    57
    Operation and Maintenance Budget Execution Data..............    58
    Military Information Support Operations......................    58
    STEM Education...............................................    59
    Border Security Equipment....................................    59
    State and Local Partnerships.................................    60
    Middle East Security Dialogues...............................    60
    POW/MIA Accountability Efforts...............................    60
    Civil Affairs Center and School..............................    60
    Official Flag Displays.......................................    60
    Operation and Maintenance, Army..............................    61
        Junior Reserve Officer Training Corps Schools............    67
        Unjustified Program Growth...............................    67
        Cemeterial Expenses......................................    67
    Operation and Maintenance, Navy..............................    67
        Strategic Dispersal of Aircraft Carriers.................    72
    Operation and Maintenance, Marine Corps......................    72
    Operation and Maintenance, Air Force.........................    75
        Visibility of Depot Maintenance Funding..................    81
        National Security Requirements for NASA Facilities.......    81
    Operation and Maintenance, Defense-Wide......................    81
    Operation and Maintenance, Army Reserve......................    84
    Operation and Maintenance, Navy Reserve......................    87
    Operation and Maintenance, Marine Corps Reserve..............    87
    Operation and Maintenance, Air Force Reserve.................    94
    Operation and Maintenance, Army National Guard...............    97
        National Guard State Partnership Program.................   101
        National Guard Civil Support Teams.......................   101
    Operation and Maintenance, Air National Guard................   102
    United States Court of Appeals for the Armed Forces..........   105
    Environmental Restoration, Army..............................   105
    Environmental Restoration, Navy..............................   105
    Environmental Restoration, Air Force.........................   105
    Environmental Restoration, Defense-Wide......................   105
    Environmental Restoration, Formerly Used Defense Sites.......   105
    Overseas Humanitarian, Disaster, and Civic Aid...............   106
    Cooperative Threat Reduction Account.........................   106
    Department of Defense Acquisition Workforce Development Fund.   106
        Defense Acquisition Workforce Development Fund...........   106
TITLE III. PROCUREMENT...........................................   107
        Advanced Medium Range Air-to-Air Missile.................   109
        Global Hawk Block 30.....................................   109
        C-27J Spartan, C-23 Sherpa, and Direct Support...........   110
        Special Interest Items...................................   111
        Reprogramming Guidance for Acquisition Accounts..........   111
        Reprogramming Reporting Requirements.....................   112
        Funding Increases........................................   112
        Classified Annex.........................................   112
    Aircraft Procurement, Army...................................   112
        UH-72A Lakota Light Utility Helicopters..................   117
        UH-60117ackhawk Helicopters..............................   117
    Missile Procurement, Army....................................   117
        Patriot Missiles.........................................   120
    Procurement of Weapons and Tracked Combat Vehicles, Army.....   120
        Bradley Fighting Vehicle.................................   124
        M1 Abrams Tank Upgrade Program...........................   124
        M88A2 Hercules Improved Recovery Vehicle.................   124
        Survivability Enhancements for Combat and Tactical 
          Vehicles...............................................   125
    Procurement of Ammunition, Army..............................   125
        Excalibur M982...........................................   129
    Other Procurement, Army......................................   129
        Container Handling Equipment.............................   138
    Aircraft Procurement, Navy...................................   138
        F/A-18E/F Tactical Aircraft..............................   146
        EA-18G Electronic Attack Aircraft........................   146
    Weapons Procurement, Navy....................................   147
    Procurement of Ammunition, Navy and Marine Corps.............   151
    Shipbuilding and Conversion, Navy............................   155
        Shipbuilding.............................................   158
    Other Procurement, Navy......................................   159
    Procurement, Marine Corps....................................   171
        Light Armored Vehicle....................................   177
    Aircraft Procurement, Air Force..............................   177
        F-22 Backup Oxygen System................................   183
        C-130 Avionics Modernization Program.....................   183
        B-52 Combat Network Communications Technology............   183
        C-130J...................................................   184
        War Readiness Engine Shortfall...........................   184
    Missile Procurement, Air Force...............................   184
        Space Launch.............................................   188
        Space Based Infrared System and Advanced Extremely High 
          Frequency Satellite System Procurement.................   188
    Procurement of Ammunition, Air Force.........................   188
    Other Procurement, Air Force.................................   190
    Procurement, Defense-Wide....................................   195
        Special Operations Command Aviation Foreign Internal 
          Defense Program........................................   200
    National Guard and Reserve Equipment.........................   200
        National Guard and Reserve Equipment.....................   202
    Defense Production Act Purchases.............................   202
        Advanced Drop-In Biofuel Production......................   203
TITLE IV. RESEARCH, DEVELOPMENT, TEST AND EVALUATION.............   205
        Systems Engineering......................................   207
        Department of Defense and Service Cyber Activities.......   208
        Advanced Hypersonic Weapon...............................   208
        Special Interest Items...................................   208
        Reprogramming Guidance for Acquisition Accounts..........   208
        Reprogramming Reporting Requirements.....................   209
        Funding Increases........................................   209
        Classified Annex.........................................   209
    Research, Development, Test and Evaluation, Army.............   209
        Medium Extended Air Defense..............................   219
        Robotic Development......................................   219
    Research, Development, Test and Evaluation, Navy.............   219
        Firescout................................................   230
        Bone Marrow Registry.....................................   230
        Electronic Equipment Maintenance.........................   231
        Automated Test and Re-Test...............................   231
        Strategic Submarine Replacement..........................   231
    Research, Development, Test and Evaluation, Air Force........   231
        Space System Acquisition and System Modernization 
          Initiatives............................................   232
        Space Based Infrared System Ground Enhancements..........   242
        Moving Target Indicator..................................   242
        KC-46A...................................................   242
        Joint Strike Fighter Decontamination.....................   243
    Research, Development, Test and Evaluation, Defense-Wide.....   243
        Historically Black Colleges and Universities and Minority 
          Institutions...........................................   254
        Science, Technology, Engineering and Mathematics 
          Education..............................................   254
        Expanding Underrepresented Minority Participation........   254
        Special Operations Command Undersea Mobility Program.....   254
        Defense Personnel Security Research Center...............   255
        Advanced Remote Sensor Technology........................   255
        Standard Missile-3 Risk Reduction for the Missile Defense 
          Agency.................................................   255
        Semiconductor Industry...................................   256
    Operational Test and Evaluation, Defense.....................   256
TITLE V. REVOLVING AND MANAGEMENT FUNDS..........................   259
    Defense Working Capital Funds................................   259
    National Defense Sealift Fund................................   259
        Afloat Forward Staging Base..............................   259
TITLE VI. OTHER DEPARTMENT OF DEFENSE PROGRAMS...................   261
    Defense Health Program.......................................   261
        Defense Health Program Reprogramming Procedures..........   265
        Carryover................................................   265
        TRICARE Fee Increases....................................   265
        Peer-Reviewed Cancer Research Program....................   265
        Joint Warfighter Medical Research Program................   266
        Congressionally Directed Medical Research Program........   266
        Traumatic Brain Injury/Psychological Health Funding......   267
        Peer-Reviewed Prostate Cancer Research Program...........   267
        Joint Task Force National Capital Region Medical.........   267
        Prescription Drug Abuse..................................   268
        Overseas Medical Laboratories............................   268
        Information Technology Discharge Solutions...............   269
        Cooperation Between Military Medical Facilities, Civilian 
          Healthcare Facilities, and Universities................   269
        Prosthetic Research......................................   269
        Multi-Disciplinary Brain Research........................   269
        Federal Neuroscience Working Group.......................   270
    Chemical Agents and Munitions Destruction, Defense...........   270
    Drug Interdiction and Counter-Drug Activities, Defense.......   270
        National Guard Counter-Drug State Plans..................   271
        Tethered Aerostat Radar System Program...................   271
    Joint Improvised Explosive Device Defeat Fund................   271
    Joint Urgent Operational Needs Fund..........................   272
    Office of the Inspector General..............................   272
TITLE VII. RELATED AGENCIES......................................   273
    National and Military Intelligence Programs..................   273
        Classified Annex.........................................   273
    Central Intelligence Agency Retirement and Disability System 
      Fund.......................................................   273
    Intelligence Community Management Account....................   273
TITLE VIII. GENERAL PROVISIONS...................................   275
TITLE IX. OVERSEAS CONTINGENCY OPERATIONS........................   285
    Committee Recommendation.....................................   285
    Reporting Requirements.......................................   285
    Afghan Local Police and Human Rights Abuses..................   285
    Military Personnel...........................................   286
    Operation and Maintenance....................................   292
        Commander's Emergency Response Program...................   298
        Coalition Support Funds..................................   298
        C-17 Engine Maintenance..................................   298
    Procurement..................................................   298
    Research, Development, Test and Evaluation...................   307
    Revolving and Management Funds...............................   309
        Defense Working Capital Funds............................   309
    Other Department of Defense Programs.........................   309
        Defense Health Program...................................   309
        Drug Interdiction and Counter-Drug Activities, Defense...   311
        Joint Improvised Explosive Device Defeat Fund............   311
        Joint Urgent Operational Needs Fund......................   311
        Office of the Inspector General..........................   311
        General Provisions.......................................   311
TITLE X. ADDITIONAL GENERAL PROVISIONS...........................   313
HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS..................   313
    Changes in the Application of Existing Law...................   313
    Appropriations Not Authorized By Law.........................   313
    Transfer of Funds............................................   324
    Rescissions..................................................   326
    Transfer of Unexpended Balances..............................   326
    Statement of General Performance Goals and Objectives........   326
    Constitutional Authority.....................................   327
    Compliance with Rule XIII, CL. 3(e) (Ramseyer Rule)..........   327
    Earmark Disclosure Statement.................................   327
    Comparison with the Budget Resolution........................   327
    Five-Year Outlay Projections.................................   327
    Financial Assistance to State and Local Governments..........   328
    Full Committee Votes.........................................   328
    Additional Views.............................................   343

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-493

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

 
            DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2013

                                _______
                                

  May 25, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

      Mr. Young of Florida, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5856]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Department of Defense, and for other 
purposes, for the fiscal year ending September 30, 2013.

                              BILL TOTALS

    Appropriations for most military functions of the 
Department of Defense are provided for in the accompanying bill 
for the fiscal year 2013. This bill does not provide 
appropriations for military construction, military family 
housing, civil defense, and military nuclear warheads, for 
which requirements are considered in connection with other 
appropriations Acts.
    The President's fiscal year 2013 budget request for 
activities funded in the Department of Defense Appropriations 
Act totals $516,131,553,000 in new budget obligational 
authority for the base military bill.

                    COMMITTEE BUDGET REVIEW PROCESS

    During its review of the fiscal year 2013 budget request 
and execution of appropriations for fiscal year 2012, the 
Subcommittee on Defense held a total of ten hearings and three 
formal Subcommittee briefings during the period from February 
2012 to April 2012. Testimony received by the Subcommittee 
totaled 763 pages of transcript. Hearings were held in open 
session, except when the security classification of the 
material to be discussed presented no alternative but to 
conduct those hearings in executive or closed session.

                              INTRODUCTION

    The Committee recommendation for the fiscal year 2013 
Department of Defense base budget is $519,219,373,000, which is 
$3,087,820,000 above the request. The Committee recommendation 
for overseas contingency operations is $88,479,906,000, which 
is $1,839,000 below the request.
    The increase in base allocation above the request provides 
the Committee with the resources to mitigate risks contained in 
the budget. Decreases in shipbuilding, unrealistic 
efficiencies, as well as Guard and reserve force structure 
decisions all carry an inherent level of risk. The Committee, 
where able, has attempted to mitigate these risks.
    In addition, the Subcommittee has reviewed in detail the 
budget request and found areas and programs where reductions 
are possible without adversely impacting the warfighter or 
modernization and readiness efforts. Examples of such 
reductions include: programs which have been terminated or 
restructured since the budget was submitted; savings from 
favorable contract pricing adjustments; contract/schedule 
delays resulting in fiscal year 2013 savings; unjustified cost 
increases or funding requested ahead of need; anticipated/
historical under execution; rescissions of unneeded prior year 
funds; and reductions that are authorized in the pending fiscal 
year 2013 National Defense Authorization Act.

                           FISCAL MANAGEMENT

    In the past, the Committee has expressed considerable 
concern over an apparent erosion of the Department's fiscal 
discipline. That erosion is reflected in an ever increasing 
reliance on the reprogramming of funds rather than establishing 
its funding priorities during the budget formulation process. 
The Committee once again notes the extraordinary growth in the 
Department's requests for authority to reprogram previously 
appropriated funding and transfer it to other programs, often 
including ``new start'' programs which have not yet received 
congressional approval. Congress annually provides a 
significant amount of general and special transfer authority to 
move funding to previously approved, higher priority defense 
programs in order to adjust to budgetary changes and 
unanticipated program changes. However, the Department has 
established a startling trend of requesting multiple numbers of 
large-scale, omnibus-like reprogrammings each year, including 
an alarming number of requests for approval to start new 
programs without the required budgetary and program 
information.
    The Committee is concerned that these trends appear to 
indicate a disturbing degradation of the Department of Defense 
Planning, Programming, and Budgeting System (PPBS) that was 
established over 40 years ago. As was noted in previous 
Committee Reports, beginning in 2003, the PPBS process has been 
significantly altered, splintering planning phases and 
requiring that the program and budget reviews occur 
simultaneously. The Committee continues to believe that these 
process changes were ill-conceived and have had significant and 
lasting adverse implications. There can be no doubt that the 
Department's financial officers have faced considerable 
challenges in managing both the war and base budgets, and the 
Committee appreciates the significant pressures the Department 
has been operating under while conducting two simultaneous 
combat operations in Iraq and Afghanistan, and the Committee 
has attempted to provide all the funding and flexibility 
necessary to support our forces in combat. However, the 
excessive reliance on authority to transfer funding previously 
appropriated for specifically requested programs, and use that 
funding for other programs is of great concern to the 
Committee.
    During annual budget deliberations for the fiscal year 2008 
defense budget request, the Committee expressed its concern 
over the apparent erosion of the Department's fiscal 
discipline, in part because the Department's annual amount of 
requests for reprogramming authority had more than doubled 
since the early 2000s. Despite the Committee's fiscal year 2008 
expression of concern and direction to implement more 
discipline in its budget development, the Department has 
continued to request significantly increased amounts of 
reprogramming authority, well beyond those amounts objected to 
by the Committee in fiscal year 2008. In fact, in fiscal year 
2011, the Department requested authority to reprogram over 
$15,100,000,000, an almost 500 percent increase from the early 
2000s.
    Additionally, the Committee has clearly indicated its 
objection to the initiation of new start programs through 
reprogramming and specifically noted the lack of any supporting 
justification and explanatory documentation to aid the 
Committee in consideration of proposed new start programs. The 
Department's own regulation, DoD Financial Management, 
7000.14R, Volume 3, Chapter 6, paragraph 060401E states: 
``Except for extraordinary situations, consideration will not 
be given to new start reprogramming requests for which the 
follow-on funding is not budgeted or programmed,'' and yet the 
Department routinely submits numerous reprogramming requests, 
including dozens of proposed new start programs, while often 
not providing any budgetary information at all concerning those 
new start programs.
    The Committee continues to strongly discourage the use of 
reprogramming requests to initiate new start programs. However, 
in those cases where the Secretary of Defense determines that a 
reprogramming request is necessary in the interest of national 
security to rapidly respond to high priority requirements from 
combatant commanders, such requests should be supported with 
specific justification and supporting budgetary implications. 
Urgent requests should not be held and aggregated over a period 
of time nor included in large omnibus-like reprogrammings. Such 
requests should be submitted immediately to the congressional 
defense committees so that the Committee can expedite its 
consideration of these urgent warfighter requests.
    The Committee strongly urges the Department to reinstitute 
rational and sequential planning and budgeting processes and 
procedures and significantly reduce its reliance on 
reprogramming of previously appropriated funding to fix 
problems. In order to assist the Department in returning to a 
more normal planning and budgeting process, the Committee has 
reduced the Department's request for general and special 
transfer reprogramming authority by $3,000,000,000.

                              COMPETITION

    The Committee understands that the Department of Defense, 
including the Military Services and related agencies, awards 
contracts through the use of competitive procedures in 
accordance with chapter 137 of title 10 U.S.C. and the Federal 
Acquisition Regulation and uses competitive procedures or a 
combination of competitive procedures as appropriate. The 
Committee directs the Secretary of Defense to use these and 
other duly established legislative and regulatory guidelines 
for the competitive acquisition of services and materials 
described in this bill and the accompanying report.

                              CONFERENCES

    The Committee is concerned with recent reports that 
taxpayer funds have been misused to support inappropriate 
conferences and activities. The Committee directs that, not 
later than 30 days after enactment of this Act, the Inspector 
General of the Department of Defense shall report to the House 
and Senate Appropriations Committees the procedures that each 
Military Service and Defense Department Component has in place 
to ensure compliance with all applicable Federal laws and 
regulations on travel, conferences, and employee awards 
programs, and shall assess the effectiveness of these 
procedures.
    Further, not later than 30 days after the end of fiscal 
year 2013, the Inspector General of the Department of Defense 
shall report to the House and Senate Appropriations Committees 
on appropriate department, agency, board, or commission 
conference spending and compliance with laws and regulations. 
At a minimum, the report shall include: the number of 
conferences held; the amount of funds obligated and expended by 
appropriation or other source of funding including budget 
accounts and subaccounts; and compliance with all applicable 
laws and regulations.

                           FUNDING INCREASES

    The Committee directs that the funding increases outlined 
in the tables for each appropriation account shall be provided 
only for the specific purposes indicated in the tables.

              COMMITTEE RECOMMENDATIONS BY MAJOR CATEGORY

         ACTIVE, RESERVE, AND NATIONAL GUARD MILITARY PERSONNEL

    In title I of the bill, the Committee recommends a total of 
$128,462,794,000 for active, reserve, and National Guard 
military personnel, an increase of $32,769,000 above the budget 
request, and $2,627,745,000 below the fiscal year 2012 enacted 
level. The recommendation supports the request to increase 
basic pay for all military personnel by 1.7 percent, effective 
January 1, 2013. The Committee also recommends full funding to 
support the authorized end strength levels for active duty and 
Selected Reserve personnel.

                       OPERATION AND MAINTENANCE

    In title II of the bill, the Committee recommends a total 
of $175,159,569,000 for operation and maintenance support to 
the military services and other Department of Defense entities, 
an increase of $220,636,000 from the fiscal year 2013 budget 
request, and an increase of $12,086,428,000 above the fiscal 
year 2012 enacted level. The recommended levels will robustly 
fund operational training programs in fiscal year 2013. 
Requests for unit and depot level maintenance; facility 
sustainment, restoration and modernization; and base operations 
support program funding are fully supported.

                              PROCUREMENT

    In title III of the bill, the Committee recommends a total 
of $102,496,191,000 for procurement.
    Major initiatives and modifications include:
    $1,306,087,000 for the procurement of 69 UH-60 Blackhawk 
helicopters, an increase of $199,000,000 and ten aircraft above 
the President's request.
    $1,076,036,000 for the procurement of 38 CH-47 Chinook 
helicopters, the same as the President's request.
    $518,088,000 for the procurement of 19 MQ-1 Unmanned Aerial 
Vehicles, the same as the President's request.
    $946,590,000 for the procurement of Patriot PAC-3 missiles 
and launchers, an increase of $300,000,000 above the 
President's request.
    $255,433,000 for the procurement of M1A2 SEP upgraded 
Abrams tanks, an increase of $181,000,000 above the President's 
request.
    $288,193,000 for the procurement of Bradley Fighting 
Vehicle Modernization, an increase of $140,000,000 above the 
President's request.
    $169,909,000 for the procurement of 49 M88A2 Improved 
Recovery Vehicles, an increase of $62,000,000 above the 
President's request.
    $100,000,000 for HMMWV modernization for the Army National 
Guard, an increase of $100,000,000 above the President's 
request.
    $940,965,000 for the procurement of 12 EA-18G Growler 
electronic attack aircraft and $45,000,000 for EA-18G advance 
procurement to preserve the option of buying additional 
aircraft in fiscal year 2014.
    $2,597,565,000 for the procurement of 37 F/A-18E/F Super 
Hornet tactical aircraft, an increase of $562,434,000 and 
eleven aircraft above the President's request.
    $2,387,052,000 for the procurement of 13 P-8A Poseidon 
Multi-mission aircraft, a decrease of $33,703,000 below the 
President's request.
    $759,945,000 for the procurement of 29 UH-1Y/AH-1Z 
Helicopters, an increase of $39,012,000 and two aircraft above 
the President's request.
    $5,158,617,000 for the procurement of 29 F-35 Lightning 
Aircraft, six short take-off and vertical landing variants for 
the Marine Corps, four carrier variants for the Navy, and 19 
conventional variants for the Air Force.
    $15,236,126,000 in Navy Shipbuilding and Conversion for the 
procurement of eleven Navy ships, one above the request, 
including one aircraft carrier, three DDG-51 guided missile 
destroyers, two SSN-774 attack submarines, four Littoral Combat 
Ships, and one Intra-theater Connector Ship.
    $1,209,421,000 for the procurement of 14 C/HC/MC/KC-130J 
aircraft, an increase of $447,000,000 and seven aircraft above 
the President's request.
    $1,656,600,000 for the procurement of 18 MV-22 and four CV-
22 Osprey aircraft, an increase of $59,260,000 and one MV-22 
aircraft above the President's request.
    $708,530,000 for the procurement of 36 MQ-9 Reaper unmanned 
aerial vehicles, an increase of $155,000,000 and 12 aircraft 
above the President's request.
    $1,679,856,000 for the procurement of four Evolved 
Expendable Launch Vehicles, the same as the President's 
request.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    In title IV of the bill, the Committee recommends a total 
of $69,984,145,000 for research, development, test and 
evaluation.
    Major initiatives and modifications include:
    $278,018,000 for the development of the Warfighter 
Information Network--Tactical, the same as the President's 
request.
    $639,874,000 for the development of the Manned Ground 
Vehicle Ground Combat Vehicle, the same as the President's 
request.
    $483,095,000 for the continuation of the development of the 
replacement for the Ohio class ballistic missile submarine, the 
same as the President's request.
    $119,065,000 for the continued development of the E-2D 
Advanced Hawkeye aircraft, the same as the President's request.
    $257,480,000 for the continued development of the Joint 
Tactical Radio System, a decrease of $80,000,000 below the 
President's request.
    $2,682,674,000 for the continued development of the F-35 
Lightning Joint Strike Fighter aircraft, a decrease of 
$16,824,000 below the President's request.
    $436,102,000 for the continued development of the Multi-
mission Maritime Aircraft, an increase of $15,000,000 above the 
President's request.
    $291,742,000 for the development of a new penetrating 
bomber, the same as the President's request.
    $1,815,588,000 for the continued development of the Next 
Generation Aerial Refueling Aircraft, the same as the 
President's request.
    $516,594,000 for continued development of the Space Based 
Infrared Satellite (SBIRS) and associated ground support 
systems, an increase of $68,000,000 above the President's 
request.
    $335,295,000, for the development of the Global Positioning 
System III operational control segment (OCX), a decrease of 
$38,300,000 below the President's request.
    $2,827,176,000 for the Defense Advanced Research Projects 
Agency, an increase of $10,000,000 above the President's 
request.
    $948,736,000 for the Israeli Cooperative Program, an 
increase of $848,900,000 above the President's request.

               SPECIAL OPERATIONS COMMAND CRITICAL NEEDS

    The Committee recommends $143,000,000 for United States 
Special Operations Command (USSOCOM) to address a critical 
capability shortfall identified by the Commander through the 
Combat Missions Needs process and approved by the Secretary of 
Defense. The recommendation funds the Commander's request to 
modify selected platforms with High Definition Full Motion 
Video which will provide a game changing Intelligence, 
Surveillance, and Reconnaissance capability.

                         DEFENSE HEALTH PROGRAM

    The Committee recommends a total of $32,862,234,000 for the 
Defense Health Program to support worldwide medical and dental 
services for active forces and other eligible beneficiaries, 
$333,516,000 above the fiscal year 2013 budget request and 
$380,175,000 above the amount appropriated for fiscal year 
2012.
    The Committee recommends funding to augment the request for 
enduring Traumatic Brain Injury and Psychological Health and 
Wounded, Ill, and Injured requirements. To address these 
challenges in the Defense Health Program, the Committee 
recommends the following:

Traumatic Brain Injury and Psychological Health Research    $125,000,000
Peer-Reviewed Spinal Cord Research......................     $15,000,000
Peer-Reviewed Orthopedic Research.......................     $30,000,000

                    OVERSEAS CONTINGENCY OPERATIONS

    In title IX of the bill, the Committee recommends a total 
of $88,479,906,000 for overseas contingency operations.
    Major initiatives and modifications include:
    Military Personnel: The Committee recommends a total of 
$13,786,221,000 for military personnel in title IX of the bill.
    Operation and Maintenance: The title IX operation and 
maintenance account fully funds key readiness programs critical 
to prepare forces for combat operations and other missions such 
as OPTEMPO flying hours and steaming days, depot maintenance, 
training, spare parts, and base operations.
    Procurement: The title IX procurement account provides 
funds for items such as replacement aircraft for combat losses, 
aircraft upgrades and modifications, intelligence, 
surveillance, and reconnaissance equipment, and physical 
security improvements.
    Defense Health Program: The Committee recommends a total of 
$993,898,000 for the Defense Health Program in title IX of the 
bill.

                          CLASSIFIED PROGRAMS

    As described elsewhere in this report, the Committee's 
budget reviews are published in a separate, detailed, and 
comprehensive classified annex. Adjustments to the classified 
programs are addressed in the classified annex accompanying 
this report.

                         FORCES TO BE SUPPORTED

                         DEPARTMENT OF THE ARMY

    The fiscal year 2013 budget request is designed to support 
current budget guidance and the Army's continuing 
transformation of its operating forces to meet defense 
strategy. Current budget guidance directs the Active Component 
(AC) end strength to reduce to 490,000 by the end of fiscal 
year 2017, Army National Guard (ARNG) end strength to reduce to 
353,200 by the end of fiscal year 2017, and the United States 
Army Reserve (USAR) to maintain its end strength at 205,000.
    By the end of fiscal year 2013, the AC will include six 
Army Service Component Command headquarters and one Army 
Component headquarters assigned to U.S. Forces Korea, three 
Corps headquarters, ten Division headquarters, 44 Brigade 
Combat Teams (BCTs), and 38 Multi-Functional Support Brigades. 
By the end of fiscal year 2013, the Army Force structure in the 
ARNG and the USAR will include eight ARNG division 
headquarters, 28 BCTs, and 60 multi-functional Support Brigades 
(48 ARNG and 12 USAR).
    A summary of the major forces follows:

------------------------------------------------------------------------
                                                     Fiscal year
                                           -----------------------------
                                              2011      2012      2013
------------------------------------------------------------------------
Active Component Forces:
    Theater Army HQs......................         6         6         6
    Corps HQs.............................         4         4         3
    Division HQs..........................        10        10        10
    Heavy Brigade Combat Team.............        17        17        16
    Infantry Brigade Combat Team..........        20        20        20
    Stryker Brigade Combat Team...........         6         8         8
    Theater Aviation Brigade HQ...........         1         1         1
    Combat Aviation Brigade...............        12        13        13
    Sustainment Brigade HQ................        13        13        13
    Fires Brigade.........................         6         7         7
    Maneuver Enhancement Brigade HQ.......         2         2         2
    Battlefield Surveillance Brigade......         3         3         3
                                           -----------------------------
        Forces Total......................       100       104       102
 
Army National Guard Forces:
    Division HQs..........................         8         8         8
    Heavy Brigade Combat Team.............         7         7         7
    Infantry Brigade Combat Team..........        20        20        20
    Stryker Brigade Combat Team...........         1         1         1
    Theater Aviation Brigade HQ...........         5         5         5
    Combat Aviation Brigade...............         8         8         8
    Sustainment Brigade HQ................        10        10        10
    Fires Brigade.........................         7         7         7
    Maneuver Enhancement Brigade HQ.......        16        16        16
    Battlefield Surveillance Brigade......         7         7         7
                                           -----------------------------
        Forces Total......................        79        79        79
 
United States Army Reserve Forces:
    Theater Aviation Brigade HQ...........         1         1         1
    Sustainment Brigade HQ................         9         9         9
    Maneuver Enhancement Brigade HQ.......         3         3         3
                                           -----------------------------
        Forces Total......................        13        13        13
------------------------------------------------------------------------

                         DEPARTMENT OF THE NAVY

    The fiscal year 2013 budget request supports battle forces 
totaling 293 ships at the end of fiscal year 2013, including 14 
fleet ballistic missile submarines, 10 aircraft carriers, 24 
support ships, eight reserve ships, 237 other battle forces 
ships, 1,688 Navy/Marine Corps tactical/ASW aircraft, 271 
undergraduate training aircraft, 514 Fleet Air Training 
aircraft, 225 Fleet Air Support aircraft, 250 reserve aircraft, 
and 251 aircraft in the pipeline.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                                  Fiscal year
                                     -----------------------------------
                                         2011        2012        2013
------------------------------------------------------------------------
Strategic Forces....................          14          14          14
    Fleet Ballistic Missile                   14          14          14
     Submarines.....................
General Purpose.....................         252         255         247
    Aircraft Carriers...............          11          11          10
    Surface Combatants..............         111         110         101
    Submarines (attack).............          53          54          55
    Guided Missile (SSGN) Submarines           4           4           4
    Amphibious Warfare Ships........          28          30          31
    Combat Logistics Ships..........          31          32          32
    Mine Warfare....................          14          14          14
Support Forces......................          18          20          24
    Support Ships...................          18          20          24
Mobilization Cat. A (Reserve).......           8           8           8
    Surface Combatants..............           8           8           8
    Mine Warfare....................           0           0           0
------------------------------------------------------------------------
Total Ships, Battleforce (incl. Cat.         292         297         293
 A Reserve).........................
    Auxiliaries/Sea Lift Forces.....          89          90          92
        Coastal Defense (Patrol               10          10          13
         Combatants)................
        Maritime Preposition........          17          18          12
        MSC Reduced Operating Status          14          14          13
        Ready Reserve Force Ships             49          48          46
         (NDSF).....................
------------------------------------------------------------------------
Naval Aircraft:
    Primary Authorized (plus pipe)..       3,572       3,563       3,555
        Authorized Pipeline.........         308         266         251
    Tactical/ASW Aircraft...........       1,648       1,668       1,688
        Fleet Air Training..........         503         515         514
        Fleet Air Support...........         222         222         225
        Training (Undergraduate)....         612         624         627
        Reserves....................         280         268         250
------------------------------------------------------------------------
Naval Personnel:
    Active:
        Navy........................    *325,301   **322,700     322,700
        Marine Corps................     201,157     202,100     182,100
        Temporary Marine Corps end    ..........  ..........      15,200
         strength in OCO............
    Reserves Navy:
        SELRES/Drilling Reserve.....      54,288      53,639      52,386
        Fulltime Support............      10,504      10,297      10,114
            Navy Reserves Total.....      64,792      63,936      62,500
------------------------------------------------------------------------
    Reserves Marine Corps:
        SELRES/Drilling Reserve.....      37,580      37,339      37,339
        Fulltime Support............       2,192       2,261       2,261
            Marine Corps Reserves         39,772      39,600     39,600
             Total..................
------------------------------------------------------------------------
*FY 2011 includes 4,400 non-core IA requested for temporary IA OCO
  missions.
**FY 2012 includes 3,836 non-core IA requested for temporary IA OCO
  missions.

                      DEPARTMENT OF THE AIR FORCE

 AIR FORCE REDUCTIONS IN FORCE STRUCTURE AND RESERVE COMPONENT IMPACTS

    The Air Force's fiscal year 2013 budget request proposes to 
retire or divest 286 current or in-production aircraft over the 
2013-2017 future years defense program (FYDP), including a loss 
of 227 aircraft by the end of fiscal year 2013 alone. The 
proposed reduction in aircraft would have a disproportionate 
impact on the Air National Guard and Air Force Reserve. The Air 
National Guard would lose 163 aircraft over the FYDP, not 
including 17 C-27J Joint Cargo Aircraft for which funds have 
been appropriated but withheld from execution by the Air Force 
due to its decision to terminate the C-27J program. The Air 
Force Reserve would lose 82 aircraft. These losses would be 
accompanied by personnel reductions of 5,100 for the Air 
National Guard and 900 for the Air Force Reserve. The reserve 
component would absorb more than 85 percent of the aircraft 
reduction and approximately 60 percent of the total Air Force 
personnel reduction. As a consequence, the reserve component 
would suffer a loss of five airlift squadrons and five tactical 
fighter squadrons in fiscal year 2013. The Air Force 
additionally proposes to realign aircraft between components 
and installations and re-mission some units that otherwise 
would be adversely affected by the proposed reductions.
    The Committee acknowledges the Air Force's need to find 
budget savings and its efforts to adjust force structure to the 
lowered expectations of the strategic review. Even with such 
reduced requirements, however, the Committee is concerned that 
the force structure reductions would add an unnecessary element 
of risk. The Committee is further concerned that the Air 
Force's proposal discounts the value that the reserve component 
adds to the total force and that the Air Force has not 
adequately considered homeland defense and disaster assistance 
requirements, especially with the proposal to transfer C-130 
aircraft from the Gulf Coast region.
    The scope and complexity of the Air Force's force reduction 
and realignment plan demand that the Committee consider it as a 
whole. The Committee does not concur with the Air Force's 
proposed force structure plan and includes bill language 
prohibiting the use of funds for the retirement, divestiture, 
realignment, or transfer of any aircraft and associated 
missions. The Committee acknowledges the Air Force's concerns 
that the restoration of force structure without the necessary 
resources would risk a ``hollow force'', and therefore the 
Committee's recommended funding levels include targeted 
increases to preserve existing force structure in fiscal year 
2013.
    The Committee is aware that the Council of Governors (COG), 
a Department of Defense advisory body established by the 
National Defense Authorization Act for Fiscal Year 2008, has 
proposed an alternative force restructuring plan. The Committee 
neither endorses nor disapproves of this plan, but encourages 
the Department and the Air Force to continue engagement with 
the COG and report on force structure alternatives resulting 
from such engagement to the congressional defense committees. 
Furthermore, the Committee expects the Air Force to refrain 
from taking any actions during fiscal years 2012 or 2013, 
including the reduction of any Air National Guard or Air Force 
Reserve Units, that would prejudice or preempt final decisions 
on force structure pending the enactment of final authorization 
and appropriations legislation by Congress.
    Finally, the Committee directs the Air Force to submit a 
report to the House Appropriations Committee at the earliest 
practicable date, but not later than October 1, 2012, providing 
a cost-benefit analysis for each set of aircraft retirements 
and realignments proposed with the fiscal year 2013 budget 
request. The Committee further directs the Government 
Accountability Office to review the Air Force's cost-benefit 
analyses and report its findings to the congressional defense 
committees not later than 180 days after the date of the Air 
Force's submission.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                       2011         2012         2013
------------------------------------------------------------------------
Strategic Airlift Squadrons:
    Active.......................           16           16           16
    Guard........................            6            6            6
    Reserve......................           16           16           16
Tactical Airlift Squadrons:
    Active.......................           10           10           10
    Guard........................           20           21           21
    Reserve......................            9            9            9
------------------------------------------------------------------------

------------------------------------------------------------------------
                                       2011         2012         2013
------------------------------------------------------------------------
USAF Fighter and Attack Squadrons           61           61           61
 (Active, ANG, AFRC).............
    Active.......................           33           32           32
    ANG..........................           24           25           25
    AFRC.........................            4            4            4
Strategic Bomber Squadrons                   9            9            9
 (Active)........................
Strategic Bomber Squadrons (AFRC)            0            0            0
Flighttest Units (DT and OT Units           12           12           12
 with Assigned aircraft).........
    Fighter......................            9            9            9
    Bomber.......................            3            3            3
ICBM Operational Launch                    495          495          495
 Facilities/Control Centers......
ICBM Missile Inventory...........          450          450          450
USAF Airlift Squadrons (Active)
    Strategic Airlift Squadrons..           15           15          15*
    Tactical Airlift Squadrons...            8            8           8*
                                  --------------------------------------
    Total Active Airlift                    23           23           23
     Squadrons...................
        Total Air Force Aircraft         5,566        5,587       5,568
         Inventory...............
------------------------------------------------------------------------
*Numbers of Squadrons above reflect combat coded units only (i.e., no
  training or test info except where noted)

------------------------------------------------------------------------
           End Strength                2011         2012         2013
------------------------------------------------------------------------
Active Duty......................      332,200      332,800      329,460
Reserve Component................      177,900      178,100      178,100
    ANG..........................      106,700      106,700      106,700
    AFR..........................       71,200       71,400       71,400
------------------------------------------------------------------------

                                TITLE I

                           MILITARY PERSONNEL

    The fiscal year 2013 budget request for programs funded in 
title I of the Committee bill, Military Personnel, is 
$128,430,025,000 in new budget authority. These appropriations 
finance basic, incentive, and special pays for active, reserve, 
and National Guard personnel, and Academy cadets; retired pay 
accrual; housing, subsistence and other allowances; recruitment 
and retention initiatives; permanent change of station (PCS) 
costs; and other military personnel costs such as survivor, 
unemployment, and education benefits. A summary of 
appropriations provided in title I, Military Personnel, 
follows:

                      MILITARY PERSONNEL OVERVIEW

    The Committee recommendation provides $128,462,794,000 for 
the Military Personnel accounts. Included is funding for 
military pay and allowances, recruitment and retention 
initiatives, and overall quality of life programs for active 
duty, reserve, and National Guard personnel. The recommendation 
fully supports the resource requirements needed to maintain the 
authorized end strength levels for fiscal year 2013. The 
recommendation also provides funding to increase basic pay for 
all military personnel by 1.7 percent, effective January 1, 
2013. The Committee continues to support and encourage 
constructive evaluations of recruitment and retention programs, 
bonus and special pay incentives, and personnel benefit 
programs for military personnel for fiscal year 2013. The 
Committee remains supportive of programs intended to enhance 
the morale and quality of life of military personnel and their 
families.

                        SUMMARY OF END STRENGTH

    The fiscal year 2013 budget request includes a decrease of 
21,600 in total end strength for the active forces and a 
decrease of 9,700 in end strength for the Selected Reserve as 
compared to the fiscal year 2012 authorized levels. The 
following tables summarize the Committee recommendations for 
end strength levels, both in the aggregate and for each active 
and Selected Reserve component.

                      OVERALL ACTIVE END STRENGTH

 
 
 
Fiscal year 2012 authorized...........................         1,422,600
Fiscal year 2013 budget request.......................         1,401,000
Fiscal year 2013 recommendation.......................         1,401,560
    Compared with fiscal year 2012....................           -21,040
    Compared with fiscal year 2013 budget request.....              +560
 

                 OVERALL SELECTED RESERVE END STRENGTH

 
 
 
Fiscal year 2012 authorized...........................           847,100
Fiscal year 2013 budget request.......................           837,400
Fiscal year 2013 recommendation.......................           843,400
    Compared with fiscal year 2012....................            -3,700
    Compared with fiscal year 2013 budget request.....            +6,000
 

                                   SUMMARY OF MILITARY PERSONNEL END STRENGTH
----------------------------------------------------------------------------------------------------------------
                                                                               Fiscal year 2013
                                                             ---------------------------------------------------
                                                    Fiscal                                              Change
                                                   year 2012    Budget       Committee      Change       from
                                                  authorized    request   recommendation     from       fiscal
                                                                                            request   year  2012
----------------------------------------------------------------------------------------------------------------
Active Forces (End Strength):
    Army*.......................................     562,000     552,100       552,100                    -9,900
    Navy........................................     325,700     322,700       322,700                    -3,000
    Marine Corps**..............................     202,100     197,300       197,300                    -4,800
    Air Force...................................     332,800     328,900       329,460           560      -3,340
        Total, Active Forces....................   1,422,600   1,401,000     1,401,560           560     -21,040
                                                 ---------------------------------------------------------------
Guard and Reserve Forces (End Strength):
    Army Reserve................................     205,000     205,000       205,000
    Navy Reserve................................      66,200      62,500        62,500                    -3,700
    Marine Corps Reserve........................      39,600      39,600        39,600
    Air Force Reserve...........................      71,400      70,500        71,400           900
    Army National Guard.........................     358,200     358,200       358,200
    Air National Guard..........................     106,700     101,600       106,700         5,100
                                                 ---------------------------------------------------------------
        Total, Selected Reserve.................     847,100     837,400       843,400         6,000      -3,700
                                                 ===============================================================
Total, Military Personnel.......................   2,269,700   2,238,400     2,244,960         6,560    -24,740
----------------------------------------------------------------------------------------------------------------
*For FY12, Army Active Forces end strength includes Temporary End Strength Increase of 14,600 troops
*For FY13, Army Active Forces end strength includes 49,700 Army end strength requested in the Overseas
  Contingency Operations budget, as well as 12,400 increase requested in the base budget for the Army's
  Temporary End strength Army Medical (TEAM) program associated with non-deployable soldiers in the Integrated
  Disability System
**For FY13, Marine Corps Active Forces end strength includes 15,200 Marine Corps end strength requested in the
  Overseas Contingency Operations budget

                      FULL-TIME SUPPORT STRENGTHS

    There are four categories of full-time support in the Guard 
and reserve components: military technicians (dual status), 
Active Guard and Reserve (AGR), non-technician civilians, and 
active component personnel.
    Full-time support personnel organize, recruit, train, 
maintain, and administer the reserve components. Military 
technicians (dual status) directly support units and are 
critical to helping units maintain readiness and meet the 
wartime mission of the Army and Air Force.
    The following table summarizes Guard and reserve full-time 
support end strengths:

                                 SUMMARY OF GUARD AND RESERVE FULL-TIME SUPPORT
----------------------------------------------------------------------------------------------------------------
                                                                                  Fiscal year 2013
                                                                   ---------------------------------------------
                                                          Fiscal                                         Change
                                                         year 2012                             Change     from
                                                        authorized   Budget      Committee      from     Fiscal
                                                                     request  recommendation   request    Year
                                                                                                          2012
----------------------------------------------------------------------------------------------------------------
Army Reserve:
    AGR...............................................     16,261     16,277       16,277     ........        16
    Technicians.......................................      8,395      8,445        8,445     ........        50
Navy Reserve:
    AR................................................     10,337     10,114       10,114     ........      -223
Marine Corps Reserve:
    AR................................................      2,261      2,261        2,261     ........  ........
Air Force Reserve:
    AGR...............................................      2,662      2,888        2,888     ........       226
    Technicians.......................................     10,777     10,283       10,777          494  ........
Army National Guard:
    AGR...............................................     32,060     32,060       32,060     ........  ........
    Technicians.......................................     27,210     28,380       28,380     ........     1,170
Air National Guard:
    AGR...............................................     14,833     14,305       14,833          528  ........
    Technicians.......................................     22,509     21,101       22,509        1,408  ........
                                                       ---------------------------------------------------------
Totals:...............................................
    AGR/AR............................................     78,414     77,905       78,433          528        19
    Technicians.......................................     68,891     68,209       70,111        1,902     1,220
                                                       =========================================================
        Total, Full-Time Support......................    147,305    146,114      148,544        2,430     1,239
----------------------------------------------------------------------------------------------------------------

                 MILITARY PERSONNEL TRANSFER AUTHORITY

    The fiscal year 2013 budget request proposes the inclusion 
of a new provision that extends the availability of up to two 
percent of amounts appropriated for Military Personnel under 
title I for two fiscal years, instead of the customary one 
fiscal year. Since 2001, the Department has had ten violations 
of the Anti-deficiency Act (ADA) in the Military Personnel 
accounts. This includes two violations in the Military 
Personnel, Army account from fiscal years 2005 and 2008 that 
remain under investigation. The Committee has repeatedly 
expressed its concern over the Department's failure to 
adequately budget for Military Personnel. The Inspector General 
of the Department of Defense and the Government Accountability 
Office have regularly reported deficiencies in the Services' 
military payroll processes and controls. Deficiencies include a 
lack of integration between military personnel, military pay, 
and accounting systems which can lead to potential errors, a 
lack of an efficient and effective system for providing 
documentation supporting payments for military payroll, and an 
inability to determine whether payroll accounts are valid or to 
verify the accuracy of payments and reported payrolls.
    Furthermore, because the Services continue to manage the 
Military Personnel appropriation by relying on estimated 
obligations or bulk obligations until actual disbursement data 
is provided weeks or months later, they are unable to track 
disbursements in real time and cannot ensure that obligations 
do not exceed the appropriation if unanticipated events occur.
    Notwithstanding the accounting deficiencies noted above, 
the Committee understands that the entitlement-based nature of 
the Military Personnel accounts and the sizable volume of 
obligations in the last quarter of the fiscal year create a 
unique budgeting challenge for the Department. The Committee 
recognizes the Department's efforts to improve its budgeting 
and oversight of the Military Personnel accounts by improving 
its cost models and obligation methods and by establishing 
formal management oversight of budget execution. While the 
Committee does not include the proposed general provision in 
its recommendation, it recognizes that the additional 
flexibility provided by such a proposal could enable the 
Department to better manage the Military Personnel 
appropriation and avoid further ADA violations. The 
Consolidated Appropriations Act, 2012 included a provision 
directing the Inspector General of the Department of Defense to 
conduct a review of ADA violations in the Military Personnel 
accounts and submit recommendations for the implementation of 
corrective actions. The Committee looks forward to reviewing 
the Inspector General's report and will reconsider the proposed 
provision based on the report's findings and recommendations.
    In addition, the Committee remains extremely concerned over 
the length of time it takes the Department to complete 
investigations into potential ADA violations in the Military 
Personnel accounts, including an investigation still pending on 
a violation dating from fiscal year 2005. The Committee directs 
the Undersecretary of Defense (Comptroller) to report to the 
congressional defense committees not later than 120 days after 
enactment of this Act on the actions being taken to complete 
ADA violation investigations in a timely manner.

                    REDUCTION OF TROOP END STRENGTH

    The fiscal year 2013 budget request proposes a reduction of 
end strength in the active duty Army, Navy, Marine Corps, and 
Air Force, and the Navy Reserve, Air Force Reserve, Army 
National Guard, and Air National Guard components from fiscal 
year 2012 to fiscal year 2017. The budget proposes to reduce 
the size of the active duty Army and Marine Corps by 72,000 and 
20,000 personnel respectively over this time period. While the 
changes proposed as part of the Air Force strategic guidance 
are addressed elsewhere in this report, the Committee remains 
concerned that the recommendation to reduce troop end strength 
across the Services is budget driven rather than based on 
military requirements.
    In addition, the Committee understands that accomplishing 
the drawdown of end strength so quickly could prove difficult 
as all Services are currently operating at or near their 
authorized end strengths and continue to meet or exceed their 
recruiting and retention goals. The Committee believes that in 
this uncertain world, any changes in force structure must be 
tempered by the need to provide a strong, capable, and highly 
qualified force ready to meet current obligations and respond 
to any future potential military needs.

               RETROACTIVE STOP LOSS SPECIAL PAY PROGRAM

    The Retroactive Stop Loss Special Pay Program authorizes 
the Secretary of Defense to provide compensation to qualifying 
servicemembers who were involuntarily extended on active duty 
under Stop Loss authority from September 11, 2001 through 
September 30, 2009. The Consolidated Appropriations Act, 2012 
extended the deadline for submission of a claim through October 
21, 2012. According to the Defense Finance and Accounting 
Service, as of February 2012, more than 97,000 retroactive stop 
loss claims from servicemembers have been processed for 
payment. The Committee understands that the Department has 
pursued numerous methods to contact military personnel who 
would be eligible for compensation, including through direct 
mail, outreach through Veteran and Military Service 
Organizations, contemporary and social media, and the Public 
Affairs offices of the Secretary of Defense and Military 
Services. The Committee directs the Secretary of Defense to 
continue to use every means available to reach out to any 
remaining eligible personnel before the conclusion of the 
program.

                SUICIDE PREVENTION TRAINING AND OUTREACH

    Suicide remains an issue of ongoing concern among the 
Services, particularly in the National Guard and reserve 
components. Although the rate of suicides in the National Guard 
and reserve components has decreased somewhat from calendar 
year 2010 to calendar year 2011, it remains far too high. While 
servicemembers serving on active duty return from deployments 
to military bases which provide more structured support 
networks, returning guardsmen and reservists are frequently 
geographically isolated from their units and may not have the 
regular interactions with their peers and chain of command that 
their active duty counterparts experience. The Committee is 
aware that suicide remains a problem among servicemembers who 
have never deployed as well as those who have deployed once or 
multiple times. The Committee acknowledges the steps the 
Services have taken to implement suicide prevention training 
and outreach efforts and to lower the rate of suicide among 
servicemembers. In addition, the Committee recognizes the 
important role that programs such as Yellow Ribbon serve in 
helping guardsmen and reservists transition to civilian life 
upon returning from deployments.
    The Committee believes that more must be done to identify 
at-risk servicemembers and to improve prevention and outreach 
efforts. For example, recent National Guard pilot programs 
embedding mental health providers in geographically separated 
or high risk units to make them readily available during annual 
training and inactive duty training have shown some initial 
successes. The Committee understands that the National Guard 
Bureau Office of the Joint Surgeon, Psychological Health is 
working with states to identify high-risk units for embedded 
counselor placement and supports efforts to improve access to 
mental health providers for all servicemembers, especially 
those in the National Guard and reserve components. In 
addition, the Committee provides increased funding for suicide 
prevention as well as the Air National Guard Yellow Ribbon 
program, which was underfunded in the budget request, and urges 
the Secretary of Defense to ensure that future budget requests 
include adequate funding for these important programs. The 
Committee urges the Services to continue to make suicide 
prevention a key priority and to regularly update the Committee 
on actions being taken.

                 SEXUAL ASSAULT PREVENTION AND RESPONSE

    Sexual assault remains a pervasive problem in the military. 
The Committee recognizes the measures that the Department of 
Defense has taken to reduce and prevent sexual assault, to 
prosecute perpetrators, and to respond to victims. The 
Secretary of Defense has implemented several new victim-focused 
policies, including providing additional legal assistance to 
victims, offering expedited transfers for victims of sexual 
assault, requiring Sexual Assault Response Coordinators and 
victim advocates to be credentialed, increasing funding for 
investigators and judge advocates to receive specialized 
training, and implementing enhanced sexual assault prevention 
and response training for commanders and senior noncommissioned 
officers. The Committee strongly supports Department and 
Service efforts to combat sexual assault and fully funds the 
President's request for Sexual Assault Prevention and Response 
programs at the Service level and at the Department of Defense 
Sexual Assault Prevention and Response Program Office.

                       HAZING IN THE ARMED FORCES

    The Committee is extremely concerned by recent reports of 
hazing in the military. Hazing is inconsistent with the values 
of the military, and such behavior should not be tolerated 
within the military. The Committee understands that the 
Services are taking steps to better report incidents of hazing 
and to discipline servicemembers involved in such incidents. 
The Committee directs the Secretary of Defense to provide a 
report to the congressional defense committees not later than 
180 days after enactment of this Act on the rates of incidence 
of hazing, harassment, and mistreatment of servicemembers, as 
well as a review of the policies to prevent and respond to 
alleged hazing incidents. The report should also include 
recommendations for implementation of a consistent reporting 
system for the Services and recommendations to implement 
prevention and education programs related to hazing and its 
harmful effects.

                           MINORITY OUTREACH

    Minorities are underrepresented in the officer ranks across 
the Services as well as in the officer and enlisted ranks of 
the Navy SEALs compared to personnel serving elsewhere in both 
the active and reserve components of the Navy and Marine Corps. 
To build a more diverse organization, disparities in 
representation need to be addressed by effective outreach that 
will expand the pool of well-qualified candidates to serve as 
military officers and as Navy SEALs. The Committee supports 
efforts to conduct effective outreach and recruiting programs 
in minority communities and encourages the Secretary of Defense 
and the Commander, Special Operations Command to support 
efforts to improve diversity in the military, including in the 
officer ranks and within the Special Operations Forces. The 
Committee directs the Commander, Special Operations Command to 
provide a report to the congressional defense committees not 
later than 90 days after enactment of this Act on the 
challenges of recruiting prospective Navy SEAL applicants from 
underrepresented communities and to provide recommendations to 
increase the competitiveness and to encourage recruitment of 
such candidates.

                        MILITARY PERSONNEL, ARMY

 
 
 
Fiscal year 2012 appropriation........................   $43,298,409,000
Fiscal year 2013 budget request.......................    40,777,844,000
Committee recommendation..............................    40,730,014,000
Change from budget request............................       -47,830,000
 

    The Committee recommends an appropriation of 
$40,730,014,000 for Military Personnel, Army. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

               ARMY MILITARY PERSONNEL FUNDING SHORTFALL

    The Committee understands that the Army has a potential 
shortfall in the fiscal year 2013 Military Personnel, Army 
appropriation due to three primary factors: expected under 
execution of the Temporary End Strength Army Medical; a higher 
active component grade plate; and an expected increase in 
reserve component soldiers serving on active duty. While the 
existence of a shortfall could not be verified in time to 
address it in this Act, the Committee commends the Army for 
highlighting the situation in a timely manner. The Committee 
remains committed to work with the Army to address the 
situation.

                        MILITARY PERSONNEL, NAVY

 
 
 
Fiscal year 2012 appropriation........................   $26,803,334,000
Fiscal year 2013 budget request.......................    27,090,893,000
Committee recommendation..............................    27,075,933,000
Change from budget request............................       -14,960,000
 

    The Committee recommends an appropriation of 
$27,075,933,000 for Military Personnel, Navy. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                      LITTORAL COMBAT SHIP MANNING

    From its inception, the Littoral Combat Ship (LCS) was 
planned to be minimally manned by small, experienced crews and 
therefore contains limited berthing commensurate with the 
minimal manning requirement. It is the Committee's 
understanding that all crewmembers were to have experienced at 
least one deployment prior to joining the LCS crew and that no 
first tour junior officers or first term enlisted sailors would 
be eligible to join an LCS crew without having prior at-sea 
experience. Since the prototypical training opportunities are 
not available on the LCS and manning is limited, the entire 
crew must be capable of performing a variety of tasks. The 
Committee now understands that the Navy is assigning ensigns 
without prior sea duty to each LCS crew as part of a new pilot 
program. The Committee is concerned that the lack of training 
opportunities will pose a particular challenge for junior 
officers with no at-sea crew experience. In addition, the LCS 
will have to rely on the addition of an interim or temporary 
berthing module when fully manned to accommodate all of the 
personnel onboard due to an insufficient number of permanent 
berths.
    The Committee is concerned that the current LCS manning 
model is unrealistic and that relying on temporary solutions 
such as berthing modules to accommodate additional crewmembers 
is both impractical and detrimental to the quality of life of 
the entire crew. The Committee understands that more berths 
could be added to future ships to provide sufficient permanent 
berthing for all crewmembers. The Committee directs the 
Secretary of the Navy to submit a report to the congressional 
defense committees not later than 120 days after enactment of 
this Act on future manning plans for the LCS. The report should 
include the Navy's plan for future manning requirements, 
including how additional crewmembers will be accommodated based 
on the outcome of the aforementioned pilot program, how 
training opportunities for junior crew members will be 
provided, a projected timeline for proposed manning changes, 
and a projected cost of ship modifications to accommodate 
additional crew members.

                    MILITARY PERSONNEL, MARINE CORPS

 
 
 
Fiscal year 2012 appropriation........................   $13,635,136,000
Fiscal year 2013 budget request.......................    12,481,050,000
Committee recommendation..............................    12,560,999,000
Change from budget request............................        79,949,000
 

    The Committee recommends an appropriation of 
$12,560,999,000 for Military Personnel, Marine Corps. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

                     MILITARY PERSONNEL, AIR FORCE

 
 
 
Fiscal year 2012 appropriation......................     $28,096,708,000
Fiscal year 2013 budget request.....................      28,048,539,000
Committee recommendation............................      28,124,109,000
Change from budget request..........................          75,570,000
 

    The Committee recommends an appropriation of 
$28,124,109,000 for Military Personnel, Air Force. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

                  CREECH AIR FORCE BASE INCENTIVE PAY

    In fiscal year 2008, the Air Force authorized Creech 
Assignment Incentive Pay (AIP) for personnel assigned to Creech 
Air Force Base, Nevada to support manning of the Remotely 
Piloted Aircraft mission. The Air Force described the pay as 
necessary because Creech Air Force Base was an austere location 
with limited infrastructure. In fiscal year 2012, the Secretary 
of Defense stated that Creech AIP would not be extended beyond 
December 31, 2011. The Consolidated Appropriations Act, 2012 
reduced excess funding no longer required due to the 
discontinuation of Creech AIP in accordance with the 
Secretary's decision. General Provision 8005 of the same Act 
prohibited the Department of Defense from using the transfer 
authority provided in those cases ``where the item for which 
funds are requested has been denied by the Congress.'' 
Additionally, in the DD Form 1414 Base for Reprogramming 
Actions, the Air Force identified Creech AIP as being 
specifically reduced by a congressional committee and it noted 
that Below Threshold Reprogramming (BTR) authority cannot be 
used to restore specific congressional reductions, including 
funding for Creech AIP.
    The Committee is extremely disturbed to learn that the 
Department of the Air Force blatantly violated public law, 
disregarded congressional intent, and ignored its own budget 
guidance by continuing to fund Creech AIP without prior 
congressional approval as required. On March 30, 2012, the 
Secretary of the Air Force stated that Creech AIP will continue 
until September 30, 2012 and will not be extended beyond that 
deadline. The Committee understands that no funding has been 
requested for Creech AIP in fiscal year 2013 and the Committee 
provides no funding for Creech AIP in accordance with the 
Secretary's decision. Any funding provided for this purpose, 
including amounts within the Below Threshold Reprogramming 
limit, must first be approved by a prior approval 
reprogramming.

              AIR FORCE BASE FAMILY HOUSING PRIVATIZATION

    The Department of the Air Force is in the process of 
completing the Family Housing Privatization Initiative at all 
domestic bases. The Committee understands that three projects, 
the Western Group, the Northern Group, and the Continental 
Group, experienced unforeseen project delays, and thus the Air 
Force did not request funding in the Military Personnel 
appropriation for Basic Allowance for Housing for 
servicemembers living at those bases. The Committee also 
understands that the Air Force now expects those projects to 
close ahead of the revised schedule. The Western Group project 
closed in March 2012, while the Air Force's most recent 
estimates show that the Northern Group will close in September 
2012, and the Continental Group will close sometime in fiscal 
year 2013, although its timing remains uncertain. The Committee 
provides funding to cover anticipated shortfalls related to the 
Western Group and Northern Group, but it does not include 
funding for possible shortfalls related to the Continental 
Group due to its continued schedule uncertainties. The 
Committee directs the Secretary of the Air Force to provide 
regular updates on the proposed timeline for the Northern Group 
and Continental Group as they become available.

                        RESERVE PERSONNEL, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $4,289,407,000
Fiscal year 2013 budget request.......................     4,513,753,000
Committee recommendation..............................     4,456,823,000
Change from budget request............................       -56,930,000
 

    The Committee recommends an appropriation of $4,456,823,000 
for Reserve Personnel, Army. The total amount recommended in 
the bill will provide the following program in fiscal year 
2013:

                        RESERVE PERSONNEL, NAVY

 
 
 
Fiscal year 2012 appropriation........................    $1,935,544,000
Fiscal year 2013 budget request.......................     1,898,668,000
Committee recommendation..............................     1,871,688,000
Change from budget request............................       -26,980,000
 

    The Committee recommends an appropriation of $1,871,688,000 
for Reserve Personnel, Navy. The total amount recommended in 
the bill will provide the following program in fiscal year 
2013:

                    RESERVE PERSONNEL, MARINE CORPS

 
 
 
Fiscal year 2012 appropriation........................      $644,722,000
Fiscal year 2013 budget request.......................       664,641,000
Committee recommendation..............................       651,861,000
Change from budget request............................       -12,780,000
 

    The Committee recommends an appropriation of $651,861,000 
for Reserve Personnel, Marine Corps. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                      RESERVE PERSONNEL, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................    $1,712,705,000
Fiscal year 2013 budget request.......................     1,741,365,000
Committee recommendation..............................     1,743,875,000
Change from budget request............................         2,510,000
 

    The Committee recommends an appropriation of $1,743,875,000 
for Reserve Personnel, Air Force. The total amount recommended 
in the bill will provide the following program in fiscal year 
2013:

                     NATIONAL GUARD PERSONNEL, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $7,585,645,000
Fiscal year 2013 budget request.......................     8,103,207,000
Committee recommendation..............................     8,089,477,000
Change from budget request............................       -13,730,000
 

    The Committee recommends an appropriation of $8,089,477,000 
for National Guard Personnel, Army. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                  NATIONAL GUARD PERSONNEL, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................    $3,088,929,000
Fiscal year 2013 budget request.......................     3,110,065,000
Committee recommendation..............................     3,158,015,000
Change from budget request............................        47,950,000
 

    The Committee recommends an appropriation of $3,158,015,000 
for National Guard Personnel, Air Force. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                                TITLE II

                       OPERATION AND MAINTENANCE

    The fiscal year 2013 budget request for programs funded in 
title II of the Committee bill, Operation and Maintenance, is 
$174,938,933,000 in new budget authority. These appropriations 
finance the costs of operating and maintaining the Armed 
Forces, including the reserve components and related support 
activities of the Department of Defense. Included is pay for 
civilians, services for maintenance of equipment, fuel, 
supplies, and spare parts for weapons and equipment. Financial 
requirements are influenced by many factors, including force 
levels such as the number of aircraft squadrons, Army and 
Marine Corps divisions, installations, military personnel 
strength and deployments, rates of operational activity, and 
the quantity, complexity, and age of equipment such as 
aircraft, ships, missiles, and tanks. The Committee does not 
provide funding for a proposed civilian pay raise in fiscal 
year 2013.
    The table below summarizes the Committee's recommendations.
    
    
       RESTORATION OF FUNDING FOR UNREALISTIC EFFICIENCY SAVINGS

    The House Report 112-110, accompanying the Department of 
Defense Appropriations Bill for fiscal year 2012, included 
language expressing the Committee's concern over many of the 
Department of Defense's proposed efficiency savings. In 
particular, the report stated that ``more troubling were 
instances in which underfunding valid requirements were claimed 
as efficiencies,'' including the decision to underfund base 
facility sustainment requirements and claim this reduction as 
infrastructure savings. In fiscal year 2013, the Department 
once again requests reduced funding for facility sustainment 
requirements and claims the reduction as infrastructure savings 
rather than deferral of maintenance. The Committee restores 
funding for Facilities Sustainment, Restoration and 
Modernization programs for the individual Services, the reserve 
components, and for Services' medical facilities, as well as 
for the Army Base Operations Support program.

                OPERATION AND MAINTENANCE REPROGRAMMINGS

    The Secretary of Defense is directed to submit the Base for 
Reprogramming (DD Form 1414) for each of the fiscal year 2013 
appropriation accounts not later than 60 days after enactment 
of this Act. The Secretary of Defense is prohibited from 
executing any reprogramming or transfer of funds for any 
purpose other than originally appropriated until the 
aforementioned report is submitted to the House and Senate 
Appropriations Committees.
    The Secretary of Defense is directed to use the normal 
prior approval reprogramming procedures to transfer funds in 
the Services' operation and maintenance accounts between O-1 
budget activities in excess of $15,000,000. In addition, the 
Secretary of Defense should follow prior approval reprogramming 
procedures for transfers in excess of $15,000,000 out of the 
following budget sub-activities:

    Army:
    Maneuver units
    Modular support brigades
    Land forces operations support
    Force readiness operations support
    Land forces depot maintenance
    Base operations support
    Facilities Sustainment, Restoration, and Modernization

    Navy:
    Aircraft depot maintenance
    Ship depot maintenance
    Facilities Sustainment, Restoration, and Modernization

    Marine Corps:
    Depot maintenance
    Facilities Sustainment, Restoration, and Modernization

    Air Force:
    Primary combat forces
    Combat enhancement forces
    Combat communications
    Facilities Sustainment, Restoration, and Modernization
    Operating forces depot maintenance
    Mobilization depot maintenance
    Training and recruiting depot maintenance
    Administration and service-wide depot maintenance

    Air Force Reserve:
    Depot maintenance

    Air National Guard:
    Depot maintenance

    Finally, the Secretary of Defense should follow prior 
approval reprogramming procedures for transfers in excess of 
$15,000,000 into the following budget subactivity:

    Operation and Maintenance, Army National Guard:
    Other personnel support/recruiting and advertising

    With respect to Operation and Maintenance, Defense-Wide, 
proposed transfers of funds to or from the levels specified for 
defense agencies in excess of $15,000,000 shall be subject to 
prior approval reprogramming procedures.

            OPERATION AND MAINTENANCE BUDGET EXECUTION DATA

    The Committee directs the Secretary of Defense to continue 
to provide the congressional defense committees with quarterly 
budget execution data. Such data should be provided not later 
than 45 days after the close of each quarter of the fiscal 
year, and should be provided for each O-1 budget activity, 
activity group, and subactivity group for each of the active, 
defense-wide, reserve, and National Guard components. For each 
O-1 budget activity, activity group, and subactivity group, 
these reports should include the budget request and actual 
obligation amount; the distribution of unallocated 
congressional adjustments to the budget request; all 
adjustments made by the Department in establishing the Base for 
Reprogramming (DD Form 1414) report, all adjustments resulting 
from below threshold reprogrammings; and all adjustments 
resulting from prior approval reprogramming requests.

                MILITARY INFORMATION SUPPORT OPERATIONS

    The budget request includes $251,600,000 for fiscal year 
2013 Department of Defense military information support 
operations programs. Of this amount, $52,700,000 is requested 
as base funding and $198,900,000 is requested as Overseas 
Contingency Operations funding. The Committee's recommendation 
reduces the total request by $81,500,000. The allocation of 
funds by Combatant Command and funding levels for certain 
programs is specifically delineated in the classified annex to 
this report. The delineations shall be considered a 
congressional special interest item and any deviations from the 
allocations are subject to sections 8005, 8006, and 9002 of 
this Act.
    The Committee has previously expressed its concern that 
some activities undertaken by the Department do not fulfill 
core military requirements and instead are more appropriately 
funded by other federal agencies which are statutorily 
authorized and traditionally charged with conducting such 
activities. The Committee appreciates the significant oversight 
and attention the Department has given to these programs and 
believes that progress is being made to address the Committee's 
concerns. Therefore, the recommendation includes funding for 
activities requested as base funding for those items that 
represent enduring military activities while continuing to fund 
other activities as Overseas Contingency Operations that have 
not been adequately justified as an enduring or traditional 
military activity.
    The Committee appreciates the Department's efforts to 
provide more detailed information regarding the budgets for 
these activities. However, the Committee believes this 
information should be provided as part of the official budget 
justification materials to enable proper analysis and 
oversight. Therefore, the Committee directs the Secretary of 
Defense to consult with the Committee to improve the official 
budget justification materials for fiscal year 2014. The 
Secretary of Defense is also directed to submit a report, not 
later than 30 days after enactment of this Act, to the House 
and Senate Appropriations Committees detailing the proposed 
execution of the funding provided for these programs. This 
report shall include the program name, activity, a description 
of service, target audience, goals/objectives, attribution, 
measures of effectiveness, prior year obligations and 
expenditures, and the estimated budget for the year of 
execution. This report, and the delineation of each program, 
project, and activity, shall serve as the basis for 
reprogramming in accordance with section 8006 of this Act.

                             STEM EDUCATION

    The Committee is concerned about the future of the Nation's 
workforce, specifically in the science, technology, 
engineering, and math (STEM) disciplines. These skills are 
vitally needed within the Department of Defense to maintain 
United States military superiority. While these skills are 
underrepresented in the available workforce, minorities 
especially are underrepresented in these skill sets both in the 
current workforce and at university levels.
    The Committee encourages the Department to support the 
development of STEM skill sets, especially in undergraduate and 
graduate programs, and to focus on increasing the participation 
and success of minority students through engaged mentoring, 
enriched research experiences, and opportunities to publish, 
present, and network. These factors, along with peer-to-peer 
mentoring, have been demonstrated to be a successful model for 
minority education.

                       BORDER SECURITY EQUIPMENT

    The Committee supports the efforts of the Department of 
Defense, including the efforts of the Defense Logistics Agency 
and the Domestic Preparedness Support Initiative, to 
collaborate and coordinate with other agencies at the federal, 
state, and local levels, including the Department of Homeland 
Security and the Department of Justice, and to prioritize the 
distribution of equipment and technologies that will mitigate 
security threats and violence along the southwest border of the 
United States, including efforts to curb the crossing of 
illegal aliens and the trafficking of humans, firearms, 
chemical precursors, narcotics, and bulk cash.

                      STATE AND LOCAL PARTNERSHIPS

    The Committee encourages the Secretary of Defense, in 
conjunction with the Services, to consider entering cooperative 
agreements with State and local governments for use of certain 
multi-use military facilities for public affairs activities 
that benefit local job creation, including commercial 
activities that promote American technology. The Committee 
expects any such agreements would be at no cost to the military 
and would not create an undue burden to accomplishing the 
inherent mission of the facility.

                     MIDDLE EAST SECURITY DIALOGUES

    The Committee supports the Department of Defense's efforts 
to promote region-wide informal conferences and task forces on 
arms control, regional security, and related topics to the 
Middle East for Arab, Israeli, and other officials and experts 
engaged in security dialogues in the Middle East at U.S. 
institutions of higher education.

                     POW/MIA ACCOUNTABILITY EFFORTS

    The Committee supports the Department of Defense's efforts 
to comply with the Prisoner Of War/Missing In Action accounting 
goals established in Section 1509(f)(2)(d)(2) of the fiscal 
year 2010 National Defense Authorization Act, as well as the 
Department's use of universities and non-profit entities 
qualified to support the fulfillment of the accounting goals.

                    CIVIL AFFAIRS CENTER AND SCHOOL

    The civil-military interface is increasingly vital to U.S. 
national security goals, such as conflict prevention and 
Counterinsurgency Operations (COIN), with civil affairs forces 
acting as key participants in such strategies. The Committee 
supports the Army's commitment to improve the language and 
cultural training and education of the General Purpose Forces 
of both the active and reserve components and to establish a 
branch and force modernization proponent for Civil Affairs to 
support the Army's total force. The Committee supports the 
Civil Affairs program in the active and reserve components and 
encourages the leveraging of existing investment in language 
and cultural training.

                         OFFICIAL FLAG DISPLAYS

    Currently, there is no uniform regulation governing the 
inclusion of the flags of the District of Columbia and the U.S. 
Territories. The Department of the Army is the only branch of 
the military that has taken steps to ensure a service-wide 
policy requiring the display of all flags. The Committee 
encourages the Secretary of Defense to adopt the Army's policy, 
which states that when the official flags of all 50 states are 
displayed by the Armed Forces, such displays shall also include 
the flags of the District of Columbia, the Commonwealth of 
Puerto Rico, the United States Virgin Islands, Guam, American 
Samoa, and the Commonwealth of the Northern Marianas Islands.

                    OPERATION AND MAINTENANCE, ARMY

 
 
 
Fiscal year 2012 appropriation........................   $31,072,902,000
Fiscal year 2013 budget request.......................    36,608,592,000
Committee recommendation..............................    36,422,738,000
Change from budget request............................      -185,854,000
 

    The Committee recommends an appropriation of 
$36,422,738,000 for Operation and Maintenance, Army. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

             JUNIOR RESERVE OFFICER TRAINING CORPS SCHOOLS

    The Committee notes that the Army's request for operation 
and maintenance includes an additional $9,289,000 to increase 
the number of Junior Reserve Officer Training Corps (JROTC) 
schools by eleven during fiscal year 2013. However, the 
justification material supporting the fiscal year 2013 budget 
request for Military Personnel, Army states that no additional 
JROTC schools will be added in fiscal year 2013. The Committee 
directs that the Army increase JROTC schools by eleven in 
fiscal year 2013 consistent with the Army's operation and 
maintenance budget request. Further, the Committee directs the 
Secretary of the Army to provide a report to the congressional 
defense committees not later than 30 days after enactment of 
this Act that lists the eleven additional schools to be added 
in fiscal year 2013.

                       UNJUSTIFIED PROGRAM GROWTH

    Included in the Army's request for fiscal year 2013 
operation and maintenance funding is more than $500,000,000 for 
which no valid justification is provided. The Army's 
justification material explains that program growth is due to 
additional funding. The justification material does not provide 
an explanation of how the funds will be used or why the funds 
are necessary. The Committee has adjusted the Army's budget 
request accordingly.

                          CEMETERIAL EXPENSES

    The Committee does not support the budget request proposal 
to fund Arlington National Cemetery through three separate 
accounts contained in two different appropriations bills. The 
budget request proposes $25,000,000 to be provided through 
Operation and Maintenance, Army, $103,000,000 to be provided 
through Military Construction, Army, and $45,800,000 to be 
provided through Cemeterial Expenses, Army for a total of 
$173,800,000. The Committee recommends no funds be provided 
through Operation and Maintenance, Army.

                    OPERATION AND MAINTENANCE, NAVY

 
 
 
Fiscal year 2012 appropriation........................   $38,120,821,000
Fiscal year 2013 budget request.......................    41,606,943,000
Committee recommendation..............................    41,463,773,000
Change from budget request............................      -143,170,000
 

    The Committee recommends an appropriation of 
$41,463,773,000 for Operation and Maintenance, Navy. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

                STRATEGIC DISPERSAL OF AIRCRAFT CARRIERS

    The Committee understands that the Department of the Navy 
has delayed the strategic dispersal of the Nation's east coast 
aircraft carriers due to fiscal concerns. The Committee 
continues to support the Navy's policy of strategic dispersal 
of aircraft carriers on both the east and west coast and 
strongly encourages the Secretary of the Navy to provide 
funding to the projects in the outyears that will satisfy this 
requirement.

                OPERATION AND MAINTENANCE, MARINE CORPS

 
 
 
Fiscal year 2012 appropriation........................    $5,542,937,000
Fiscal year 2013 budget request.......................     5,983,163,000
Committee recommendation..............................     6,075,667,000
Change from budget request............................        92,504,000
 

    The Committee recommends an appropriation of $6,075,667,000 
for Operation and Maintenance, Marine Corps. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                  OPERATION AND MAINTENANCE, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................   $34,985,486,000
Fiscal year 2013 budget request.......................    35,435,360,000
Committee recommendation..............................    35,408,795,000
Change from budget request............................       -26,565,000
 

    The Committee recommends an appropriation of 
$35,408,795,000 for Operation and Maintenance, Air Force. The 
total amount recommended in the bill will provide the following 
program in fiscal year 2013:

 VISIBILITY OF DEPOT MAINTENANCE FUNDING FOR AIR FORCE RESERVE AND AIR 
                             NATIONAL GUARD

    The Air Force Reserve and Air National Guard have not 
properly justified $104,111,000 and $497,704,000, respectively, 
of depot maintenance funding contained in the fiscal year 2013 
budget request by not correctly reflecting the requested 
funding for weapons system depot maintenance in the Depot 
Maintenance Subactivity Group. The Committee remains concerned 
that the lack of visibility of depot maintenance funding is an 
obstacle to effective management of a program which is critical 
to military readiness. The Consolidated Appropriations Act, 
2012 consolidated all depot maintenance funding for the Air 
Force in the Depot Maintenance Subactivity Group. In fiscal 
year 2013, the Committee identifies and consolidates all depot 
maintenance funding contained in the Air Force Reserve and Air 
National Guard fiscal year 2013 budget requests in the 
respective Depot Maintenance Subactivity Groups. The Committee 
also directs the Secretary of the Air Force to display all 
depot maintenance funds requested in the fiscal year 2014 
budget in the Depot Maintenance Subactivity Group.
    The Committee is also concerned that the Department of the 
Air Force significantly underfunded Depot Maintenance for both 
the Air Force Reserve and Air National Guard. The Committee 
believes that failing to provide adequate funding for weapons 
system depot maintenance will impact readiness and cause 
aircraft to be grounded due to failure to meet maintenance 
requirements. The Committee restores funding for depot 
maintenance and expects that future budget requests to contain 
sufficient funding for the reserve component depot maintenance 
programs.

           NATIONAL SECURITY REQUIREMENTS FOR NASA FACILITIES

  For NASA property that has a national security purpose, the 
Committee directs that the Department of Defense provide to the 
House Committee on Appropriations a report, concurrent with any 
report submitted by NASA for such property under 51 U.S.C. 
20117 and consistent with the procedures established under 51 
U.S.C. 20117, describing how continued access to such property 
will remain viable.

                OPERATION AND MAINTENANCE, DEFENSE-WIDE

 
 
 
Fiscal year 2012 appropriation........................   $30,152,008,000
Fiscal year 2013 budget request.......................    31,993,013,000
Committee recommendation..............................    31,780,813,000
Change from budget request............................      -212,200,000
 

    The Committee recommends an appropriation of 
$31,780,813,000, for Operation and Maintenance, Defense-Wide. 
The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                OPERATION AND MAINTENANCE, ARMY RESERVE

 
 
 
Fiscal year 2012 appropriation........................    $3,071,733,000
Fiscal year 2013 budget request.......................     3,162,008,000
Committee recommendation..............................     3,199,423,000
Change from budget request............................        37,415,000
 

    The Committee recommends an appropriation of $3,199,423,000 
for Operation and Maintenance, Army Reserve. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                OPERATION AND MAINTENANCE, NAVY RESERVE

 
 
 
Fiscal year 2012 appropriation........................    $1,305,134,000
Fiscal year 2013 budget request.......................     1,246,982,000
Committee recommendation..............................     1,256,347,000
Change from budget request............................         9,365,000
 

    The Committee recommends an appropriation of $1,256,347,000 
for Operation and Maintenance, Navy Reserve. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

            OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

 
 
 
Fiscal year 2012 appropriation........................      $271,443,000
Fiscal year 2013 budget request.......................       272,285,000
Committee recommendation..............................       277,377,000
Change from budget request............................         5,092,000
 

    The Committee recommends an appropriation of $277,377,000 
for Operation and Maintenance, Marine Corps Reserve. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

              OPERATION AND MAINTENANCE, AIR FORCE RESERVE

 
 
 
Fiscal year 2012 appropriation........................    $3,274,359,000
Fiscal year 2013 budget request.......................     3,166,482,000
Committee recommendation..............................     3,362,041,000
Change from budget request............................       195,559,000
 

    The Committee recommends an appropriation of $3,362,041,000 
for Operation and Maintenance, Air Force Reserve. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

             OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

 
 
 
Fiscal year 2012 appropriation........................    $6,924,932,000
Fiscal year 2013 budget request.......................     7,108,612,000
Committee recommendation..............................     7,187,731,000
Change from budget request............................        79,119,000
 

    The Committee recommends an appropriation of $7,187,731,000 
for Operation and Maintenance, Army National Guard. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

                NATIONAL GUARD STATE PARTNERSHIP PROGRAM

    The National Guard State Partnership Program (SPP) is an 
innovative program that partners individual National Guards 
with allied nations to exchange military skills and experience, 
share defense knowledge, enhance partnership capacity, and 
further mutual security cooperation. For twenty years, the SPP 
has played a critical role in extending U.S. military 
capabilities, enhancing bilateral relations, and supporting the 
missions of U.S. ambassadors and combatant commanders abroad by 
creating sustainable cooperative partnerships between the state 
and territorial National Guards and foreign partner nations. By 
promoting better understanding of one another's military needs 
and security concerns, the SPP helps lay the foundation for 
more effective teamwork and a more cooperative security 
environment among friendly and allied nations. The Committee 
fully funds the President's request for the SPP and supports 
the continued efforts of this program.

                   NATIONAL GUARD CIVIL SUPPORT TEAMS

    The Deputy's Management Action Group (DMAG), created by the 
Deputy Secretary of Defense to eliminate wasteful spending, has 
chosen to eliminate two National Guard Weapons of Mass 
Destruction/Civil Support Teams (WMD/CSTs)--one each in New 
York and Florida.
    WMD/CSTs were established to rapidly assist a local 
incident commander in determining the nature and extent of an 
attack or incident by identifying agents and substances, 
assessing current and projected consequences, advising on 
response measures, and assisting with requests for additional 
military support. Teams provide expert technical advice on WMD 
response operations and help identify and support the arrival 
of follow-on state and federal military response assets. They 
are joint units and, as such, might consist of both Army 
National Guard and Air National Guard personnel.
    Currently there are 57 WMD/CSTs--one in each state, plus 
one in the District of Columbia, Guam, Puerto Rico, and the 
U.S. Virgin Islands, and two each in the states of California, 
New York, and Florida, due to the geographic separation and 
concentrations of populations in these three states.
    The Committee believes that the DMAG's recommendation to 
eliminate WMD/CSTs from New York and Florida is an imprudent 
decision, especially given that the additional teams in New 
York and Florida were recently certified.
    The personnel and operation and maintenance costs for each 
team averages less than $5,000,000 annually.
    Given the geographic disparity and high population 
concentrations of these two states, the Committee directs that 
the Secretary of Defense review the DMAG's recommendations 
regarding this reduction and not later than 90 days after 
enactment of this Act provide a report to the congressional 
defense committees outlining in detail the savings expected by 
this reduction, and how these savings outweigh the benefit of 
providing WMD/CST coverage at these two important locations. 
Additionally, the Committee expects the Department of Defense 
to fully fund the two teams in New York and Florida in the 
fiscal year 2014 request.

             OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

 
 
 
Fiscal year 2012 appropriation........................    $6,098,780,000
Fiscal year 2013 budget request.......................     6,015,455,000
Committee recommendation..............................     6,608,826,000
Change from budget request............................       593,371,000
 

    The Committee recommends an appropriation of $6,608,826,000 
for Operation and Maintenance, Air National Guard. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2013:

          UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

 
 
 
Fiscal year 2012 appropriation........................       $13,861,000
Fiscal year 2013 budget request.......................        13,516,000
Committee recommendation..............................        13,516,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation of $13,516,000 
for the United States Court of Appeals for the Armed Forces.

                    ENVIRONMENTAL RESTORATION, ARMY

 
 
 
Fiscal year 2012 appropriation........................      $346,031,000
Fiscal year 2013 budget request.......................       335,921,000
Committee recommendation..............................       335,921,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation of $335,921,000 
for Environmental Restoration, Army.

                    ENVIRONMENTAL RESTORATION, NAVY

 
 
 
Fiscal year 2012 appropriation........................      $308,668,000
Fiscal year 2013 budget request.......................       310,594,000
Committee recommendation..............................       310,594,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation of $310,594,000 
for Environmental Restoration, Navy.

                  ENVIRONMENTAL RESTORATION, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................      $525,453,000
Fiscal year 2013 budget request.......................       529,263,000
Committee recommendation..............................       529,263,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation of $529,263,000 
for Environmental Restoration, Air Force.

                ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

 
 
 
Fiscal year 2012 appropriation........................       $10,716,000
Fiscal year 2013 budget request.......................        11,133,000
Committee recommendation..............................        11,133,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation of $11,133,000 
for Environmental Restoration, Defense-Wide.

         ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

 
 
 
Fiscal year 2012 appropriation........................      $326,495,000
Fiscal year 2013 budget request.......................       237,543,000
Committee recommendation..............................       237,543,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation of $237,543,000 
for Environmental Restoration, Formerly Used Defense Sites.

             OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

 
 
 
Fiscal year 2012 appropriation........................      $107,662,000
Fiscal year 2013 budget request.......................       108,759,000
Committee recommendation..............................       108,759,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation $108,759,000 for 
Overseas Humanitarian, Disaster, and Civic Aid.

                  COOPERATIVE THREAT REDUCTION ACCOUNT

 
 
 
Fiscal year 2012 appropriation........................      $508,219,000
Fiscal year 2013 budget request.......................       519,111,000
Committee recommendation..............................       519,111,000
Change from budget request............................             - - -
 

    The Committee recommends an appropriation of $519,111,000 
for the Cooperative Threat Reduction Account.

      DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT FUND

 
 
 
Fiscal year 2012 appropriation........................      $105,501,000
Fiscal year 2013 budget request.......................       274,198,000
Committee recommendation..............................        50,198,000
Change from budget request............................      -224,000,000
 

    The Committee recommends an appropriation of $50,198,000 
for the Department of Defense Acquisition Workforce Development 
Fund for fiscal year 2013.

             DEFENSE ACQUISITION WORKFORCE DEVELOPMENT FUND

    The purpose of the Defense Acquisition Workforce 
Development Fund is to ensure the Department has the capacity 
in both personnel and skills needed to perform its acquisition 
mission, provide appropriate oversight of contractor 
performance, and ensure that the Department receives the best 
possible value for its use of the taxpayer's precious 
resources. The fund accomplishes this purpose through the use 
of directly appropriated funds as well as using funding 
transferred from other efforts. In fiscal year 2013, the budget 
request proposes $274,198,000 to meet the Department's 
statutory level of $944,000,000 for the year. Department 
representatives have stated that this level of funding will not 
be required to achieve the goals of the fund in fiscal year 
2013. Accordingly, the Committee recommends funding of 
$50,198,000, which represents a reduction of $224,000,000 below 
the request and maintains the fund at the fiscal year 2012 
level.
                               TITLE III

                              PROCUREMENT

                  ESTIMATES AND APPROPRIATIONS SUMMARY

    The fiscal year 2013 Department of Defense procurement 
budget request totals $97,194,677,000, with advanced 
appropriations of $4,426,700,000, for a total of 
$101,621,377,000. The table below summarizes the budget 
estimates and the Committee's recommendations.

                ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE

    The Committee recommends $304,327,000 for procurement of 
the Advanced Medium Range Air-to-Air Missile (AMRAAM) in the 
Weapons Procurement, Navy and Missile Procurement, Air Force 
accounts, a decrease of $27,993,000 below the request. The 
decrease is due to lower than expected missile costs based upon 
the contract award of the Lot 26 (fiscal year 2012) contract. 
The recommendation fully funds the requested quantity of 180 
missiles and also rescinds a total of $40,572,000 from prior 
year appropriations to the same accounts due to the fiscal year 
2012 contract savings.
    The Committee is concerned with the level of diminishing 
manufacturing sources (DMS) costs within the AMRAAM program. 
The fiscal year 2013 request for AMRAAM DMS is $64,496,000, or 
19.4 percent of the total request, and program officials have 
reported that DMS costs are projected to increase to 
$100,000,000 annually, an amount that appears to be far higher 
than that of any other missile program. The Committee therefore 
directs the Secretary of the Air Force to submit a report to 
the congressional defense committees on the management of DMS 
within the AMRAAM program. This report shall include, at a 
minimum: identification of the cost drivers for DMS within the 
AMRAAM program; a comparison of AMRAAM DMS costs with other 
Department of Defense tactical missile programs; a discussion 
of the AMRAAM program's approach to DMS and its conformity with 
departmental guidance and best practices; and an economic 
analysis demonstrating the costs and benefits, including the 
break-even point, of the AMRAAM DMS program. This report shall 
be submitted not later than 90 days after enactment of this 
Act.

                          GLOBAL HAWK BLOCK 30

    The Air Force's fiscal year 2013 budget request proposes 
terminating the Global Hawk Block 30 program and retiring the 
18 aircraft that have been delivered or are currently in 
production. The Air Force also intends not to execute funds 
provided for three additional Block 30 aircraft, which the Air 
Force requested in fiscal year 2012. The Block 30 aircraft and 
sensor suite previously was designated by the Air Force as the 
platform to replace the U-2 aircraft for high altitude 
intelligence, surveillance, and reconnaissance (ISR) by 2016.
    On June 14, 2011, the Under Secretary of Defense for 
Acquisition, Technology and Logistics certified the Global Hawk 
Block 30 program as essential to national security per the 
Nunn-McCurdy Act. The certification further stated that the U-2 
would cost $220,000,000 per year more than the Global Hawk in 
the context of the Block 30 mission requirement. The Air 
Force's dramatic reversal of position on the respective merits 
of the Block 30 and the U-2 appears to be based on three major 
factors: a reduced requirement for high altitude ISR pursuant 
to the Department of Defense's strategic review; an assessment 
by the Department that the sensors on the U-2 perform at a 
level equal or superior to those on the Block 30; and that cost 
considerations favor the U-2.
    The Committee does not concur with the Air Force's proposal 
to retire the Global Hawk Block 30. First, the abrupt reversal 
of the Department's position on the relative merits of the 
Global Hawk Block 30 and the U-2 is highly dependent on the 
assumptions and findings of the strategic review, and the 
Committee believes that the rationale and implications of this 
new strategy require further examination.
    Second, the Air Force's contention that the U-2 is more 
cost-effective than the Global Hawk is open to question. Air 
Force data indicates that the operation and sustainment cost 
per flight hour of the Global Hawk Block 30, approximately 
$32,000, is roughly equal to that of the U-2. The new high 
altitude ISR requirement appears to negate the Block 30's range 
advantage, allowing the Air Force to perform the mission with 
the existing U-2 fleet. However, since the Global Hawk's 
endurance advantage should allow for fewer aircraft to execute 
high altitude ISR orbits under the new requirement approved by 
the Joint Requirements Oversight Council (JROC), the cost 
comparison between the Global Hawk and the U-2 at the level of 
mission execution is unclear. The Air Force has also stated 
that achieving sensor ``parity'' between the U-2 and Global 
Hawk would require additional funding up to $808,000,000, but 
it has not justified this estimate or indicated alternatives, 
such as adapting U-2 sensors for use on the Global Hawk.
    Third, the Air Force has not presented the Committee with 
the full range of options and associated costs for divesting 
its Global Hawk Block 30 fleet. The ramifications of Block 30 
termination include potential cost and schedule impacts to the 
Navy's Broad Area Maritime Surveillance (BAMS) program and the 
NATO Alliance Ground Surveillance (AGS) program.
    The Committee directs the Secretary of the Air Force to 
submit a report to the congressional defense committees that 
includes the cost and feasibility of converting Global Hawk 
Block 30 aircraft for the purposes of the Navy's Broad Area 
Maritime Surveillance (BAMS) program; a detailed cost estimate 
for achieving sensor ``parity'' between the U-2 and Global Hawk 
and the assumptions behind such estimate, as well as an 
estimate of the cost and feasibility of adapting U-2 sensors 
for use on the Global Hawk Block 30 airframe; a comparison 
between the Global Hawk and the U-2 of the number of aircraft 
and cost required to execute a high altitude ISR orbit at the 
range required by the JROC; and the estimated cost and schedule 
impacts of Block 30 termination to both the BAMS and the NATO 
AGS program. The sections of the report relating to BAMS shall 
be developed in consultation with the Secretary of the Navy. 
This report shall be provided not later than March 1, 2013.
    Finally, the Committee directs the Air Force to fully 
execute funding provided in fiscal year 2012 for the 
procurement of three additional Global Hawk Block 30 aircraft 
and includes bill language to this effect.

             C-27J SPARTAN, C-23 SHERPA, AND DIRECT SUPPORT

    The Air Force's fiscal year 2013 budget request proposed 
terminating the C-27J Spartan, also known as the Joint Cargo 
Aircraft. The C-27J fleet is assigned to the Air National Guard 
and provides time sensitive/mission critical cargo delivery to 
ground forces in austere environments. Congress has fully 
funded the Air Force's program of record for 38 aircraft, of 
which twelve had been delivered and nine were in production as 
of February 2012.
    The C-27J currently is operational in Afghanistan, and the 
Committee has been presented with no evidence that the aircraft 
is deficient in performance or otherwise fails to satisfy 
mission requirements. The Air Force's proposal is based on the 
contention that the C-27J's ``niche'' mission can be performed 
equally well by the C-130 fleet at less cost. Even if such 
considerations are valid, they were not made known to the 
Committee when the Air Force requested funds for the 
procurement of additional C-27J aircraft as recently as last 
year. The Committee is concerned both by the impact that 
termination of the C-27J would have on the Air National Guard 
and the wastefulness of disowning an investment of 
$1,040,000,000 in a brand new aircraft recently considered by 
the Air Force and Army as vital to the direct support of 
forward deployed troops. When combined with the Army's proposal 
to phase out the Army National Guard's C-23 Sherpa fleet by 
2015, the termination of the C-27 indicates flagging commitment 
to ensuring the direct support mission within the Department of 
Defense, and the devaluation of the role that aircraft such as 
the C-23 and C-27 play in homeland defense and disaster 
response support to the States. The Committee therefore does 
not concur with the Air Force's proposal to terminate the C-27J 
program.
    The Committee directs the Secretary of the Air Force to 
execute the existing funds provided by Congress in fiscal years 
2011 and 2012 to procure up to 17 additional aircraft and 
includes bill language to this effect. The Committee recommends 
additional funds in this bill for the purchase of spares, 
interim contractor support, and other costs required to 
continue the C-27J program. Finally, the Committee includes 
bill language prohibiting the further retirement of C-23 Sherpa 
aircraft and includes funds to maintain the current fleet of 34 
aircraft.

                         SPECIAL INTEREST ITEMS

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

            REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

    It is the intent of the Congress that the program baseline 
for re-programming funds reflects all approved adjustment 
actions: the initial appropriation as well as any rescissions, 
supplemental appropriations, and approved Department of Defense 
Form 1415 reprogrammings. The Secretary of Defense is directed 
to ensure that financial management regulations incorporate 
approved reprogramming actions as an adjustment to the base for 
reprogramming value.
    The Committee directs the Secretary of Defense to continue 
to follow the reprogramming guidance specified in the report 
accompanying the House version of the Department of Defense 
Appropriations Act, 2006 (H.R. 109-119). Specifically, the 
dollar threshold for reprogramming funds will remain at 
$20,000,000 for procurement and $10,000,000 for research, 
development, test and evaluation. The Secretary shall continue 
to follow the limitation that prior approval reprogrammings are 
set at either the specified dollar threshold or 20 percent of 
the procurement or research, development, test and evaluation 
line, whichever is less. The percentage change limitation 
applies to both program increases and decreases. Additionally, 
this percentage change applies to the program base value at the 
time the below threshold movement of funds is executed. These 
thresholds are cumulative from the base for reprogramming value 
as modified by any adjustment action. Therefore, if the 
combined value of transfers into or out of a procurement (P-1) 
or research, development, test and evaluation (R-1) line 
exceeds the identified threshold, the Secretary of Defense must 
submit a prior approval reprogramming to the congressional 
defense committees. In addition, guidelines on the application 
of prior approval reprogramming procedures for congressional 
special interest items are established elsewhere in this 
report.

                  REPROGRAMMING REPORTING REQUIREMENTS

    The Committee directs the Under Secretary of Defense 
(Comptroller) to continue to provide the congressional defense 
committees quarterly, spreadsheet-based DD Form 1416 reports 
for service and defense-wide accounts in titles III and IV of 
this Act as required in the explanatory statement accompanying 
the Department of Defense Appropriations Act, 2006.

                           FUNDING INCREASES

    The Committee directs that the funding increases outlined 
in these tables shall be provided only for the specific 
purposes indicated in the tables.

                            CLASSIFIED ANNEX

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

                       AIRCRAFT PROCUREMENT, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $5,360,334,000
Fiscal year 2013 budget request.......................     5,853,729,000
Committee recommendation..............................     6,115,226,000
Change from budget request............................       261,497,000
 

    This appropriation provides funds for the acquisition of 
tactical and utility airplanes and helicopters, including 
associated electronics, electronic warfare equipment for in-
service aircraft, ground support equipment, components, and 
parts such as spare engines, transmission gear boxes, and 
sensor equipment. It also funds related training devices such 
as combat flight simulators and production base support.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                UH-72A LAKOTA LIGHT UTILITY HELICOPTERS

    The budget request proposes $271,983,000 to procure 34 UH-
72A Lakota Light Utility Helicopters. The Committee is aware of 
the excellent performance of UH-72A helicopters in both active 
and reserve component Army units. The Committee recommendation 
provides the full amount requested for UH-72A Light Utility 
Helicopters. Additionally, the Committee recognizes the 
increased capability the UH-72A provides to the Army National 
Guard for homeland security, civil search and rescue, support 
to training centers including medical evacuation, and counter-
drug operations. Accordingly, the Committee includes an 
additional $23,997,000 above the budget request for a total of 
$295,980,000. The additional funds are only for the procurement 
of three Lakota helicopters for the Army National Guard, 
including one to replace an aircraft lost in a training 
accident.

                      UH-60 BLACKHAWK HELICOPTERS

    The budget request proposes $1,107,087,000 to purchase 59 
UH-60M helicopters. All of the aircraft are intended for the 
active duty Army. However, the Committee is aware that the Army 
National Guard operates a fleet of more than 815 Blackhawk 
helicopters. Many of the Army National Guard aircraft date back 
to the 1970s. The age of the National Guard fleet combined with 
the high operating tempo experienced over a decade of war argue 
for a combination of upgrades and new purchases to help 
maintain an acceptable state of readiness. However, at the 
current rate of upgrading the oldest UH-60s, the A models, the 
work will not be completed until 2027. The Committee finds this 
to be an unacceptable readiness risk. Accordingly, the 
Committee recommendation includes an additional $199,000,000 
above the budget request only for ten new UH-60M helicopters 
for the Army National Guard. The total provided for new UH-60s 
is $1,306,087,000.
    Additionally, the Committee recommendation includes 
$20,000,000 above the budget request of $73,804,000 for a total 
of $93,804,000 for conversion of Army National Guard UH-60A 
model aircraft to UH-60L model aircraft.

                       MISSILE PROCUREMENT, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $1,461,223,000
Fiscal year 2013 budget request.......................     1,302,689,000
Committee recommendation..............................     1,602,689,000
Change from budget request............................       300,000,000
 

    This appropriation provides funds for the acquisition of 
surface-to-air, surface-to-surface, air-to-surface, and anti-
tank/assault missile systems. Also included are major 
components, modifications, targets, test equipment, and 
production base support.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                            PATRIOT MISSILES

    The budget request proposes $646,590,000 for Patriot 
missile systems, including 84 missiles and 38 Enhanced Launcher 
Electronic Systems. The Committee is aware of the importance of 
the Patriot Advanced Capability 3 (PAC-3) missile to the 
combatant commanders. The Committee is also aware of the threat 
facing forward deployed units and the challenges of integrating 
the capabilities of the various Patriot series missiles. The 
Committee expects that advances achieved in the soon to be 
fielded Missile Segment Enhancement Missile and technology 
developed in the Medium Extended Air Defense System proof of 
concept will enhance the coverage and lethality of our missile 
defenses. In the near term; however, the Patriot PAC-3 provides 
accurate and reliable surveillance, detection, and engagement 
capability against tactical ballistic missiles, cruise 
missiles, and air breathing threats. The Committee 
recommendation fully supports the budget request of 
$646,590,000 for additional Patriot systems. The recommendation 
provides $300,000,000 above the budget request to provide 
additional PAC-3 missiles and launcher systems in support of 
the combatant commanders. The total funding provided is 
$946,590,000.

        PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $2,070,405,000
Fiscal year 2013 budget request.......................     1,501,706,000
Committee recommendation..............................     1,884,706,000
Change from budget request............................       383,000,000
 

    This appropriation provides funds for the acquisition of 
tanks, personnel and cargo carriers, fighting vehicles, tracked 
recovery vehicles, self-propelled and towed howitzers, machine 
guns, mortars, modification of in-service equipment, initial 
spares, and production base support.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                        BRADLEY FIGHTING VEHICLE

    The budget request proposes $148,193,000 for the Bradley 
Fighting Vehicle upgrade program. The Committee recommendation 
fully funds the budget request and provides an additional 
$140,000,000 for a total of $288,193,000. The Bradley Fighting 
Vehicle has performed well in the wars in Iraq and Afghanistan. 
The high priority placed on the Ground Combat Vehicle program--
Infantry Fighting Vehicle that will succeed the Bradley is a 
testament to the importance of the armored-troop-carrying and 
direct-engagement fighting vehicle with its multiple functional 
configurations. From Operation Desert Storm to the present, as 
the threat has adapted, the Army has upgraded the Bradley with 
improved lethality, armor, fire controls, communications, and 
situational awareness. The Committee is aware that the budget 
request provides funding for Engineering Change Proposal 1 
(ECP-1) upgrades to the track and suspension and funding for 
Second Generation Forward Looking Infrared. The Committee 
provides the additional $140,000,000 to support ECP-2, which 
improves the power train and electrical system in order to 
better support the technology advances of the Joint Tactical 
Radio System, Battle Command System, Warfighter Information 
Network-Tactical, and Second Generation Forward Looking 
Infrared. The Committee directs the Secretary of the Army to 
provide a report to the congressional defense committees, not 
later than 90 days after enactment of this Act, which describes 
the plan to use the additional funds to keep the Bradley 
production base operating.

                     M1 ABRAMS TANK UPGRADE PROGRAM

    The budget request includes $74,433,000 for the Abrams Tank 
Upgrade Program. The requested funding is intended to provide 
System Technical Support, Total Package Fielding for tanks that 
have been produced, and New Equipment Training. The 
recommendation provides $255,433,000 for the M1 Abrams Tank 
Upgrade Program, which is $181,000,000 above the request, to 
continue production of the latest model M1A2 SEP tank. The 
Committee understands that the Secretary of the Army has taken 
action using the additional funds provided by Congress in the 
Consolidated Appropriations Act, 2012, that will mitigate risk 
to the industrial base. The additional funds recommended in 
this Act will support a continuation of that effort. The 
additional tanks that will be produced will bring the tank 
fleet closer to a ``pure fleet'' situation for training, 
operations, and logistics. The Committee directs the Secretary 
of the Army to provide a report to the congressional defense 
committees, not later than 90 days after enactment of this Act, 
that describes the plan to use the additional funds to sustain 
the tank production base.

                M88A2 HERCULES IMPROVED RECOVERY VEHICLE

    The budget request includes $107,909,000 to procure 31 
M88A2 Heavy Equipment Recovery Combat Utility Lift and 
Evacuation Systems (HERCULES) Improved Recovery Vehicles. The 
Committee recommendation fully funds the request and provides 
an additional $62,000,000 for a total of $169,909,000. The 
additional funding increases the number of M88A2s purchased by 
18 to a total of 49 vehicles. The M88A2 is the only vehicle 
that is capable of single vehicle recovery of the 70 ton M1A2 
tank. Without the availability of an M88A2, Army units must use 
two vehicles to recover an Abrams tank, with the second vehicle 
serving as a braking vehicle. Using two lighter vehicles to tow 
an M1A2 Abrams tank is difficult and dangerous. The Committee 
understands that heavy brigade combat teams are equipped with a 
mix of recovery vehicles, typically 15 M88A2s and 11 M88A1s. 
The Committee encourages the Army to accelerate the replacement 
of the A1 models with M88A2 Hercules vehicles.

      SURVIVABILITY ENHANCEMENTS FOR COMBAT AND TACTICAL VEHICLES

    The Committee is aware that in order to protect our troops 
from injuries and deaths due to fires, survivability 
enhancements have been applied to ground platforms, 
specifically to the Army's Bradley Fighting Vehicle. The 
Committee applauds this initiative and notes that mature 
technologies exist that can improve occupant safety and the 
chances for vehicle survivability. Accordingly, the Committee 
looks forward to the Army's and other Services' continued 
application of such mature, non-developmental approaches to 
other ground combat and non-combat vehicles including, but not 
limited to, Mine Resistant Ambush Protected vehicles and 
Strykers.

                    PROCUREMENT OF AMMUNITION, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $1,884,424,000
Fiscal year 2013 budget request.......................     1,739,706,000
Committee recommendation..............................     1,576,768,000
Change from budget request............................      -162,938,000
 

    This appropriation provides funds for the acquisition of 
ammunition, modification of in-service stock, and related 
production base support including the maintenance, expansion, 
and modernization of industrial facilities and equipment.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                             EXCALIBUR M982

    The M982 Extended Range 155mm artillery projectile has 
proven to be a reliable, accurate, and lethal weapon. The Army 
is able to achieve the necessary effect with fewer rounds fired 
and with reduced collateral damage. The budget request proposes 
$110,329,000 in the base budget to procure 2,046 projectiles, 
and $12,300,000 in Overseas Contingency Operations funding for 
241 projectiles. The Committee recommendation fully funds the 
Overseas Contingency Operations request. The Committee notes 
that the base program has experienced a delay of about six 
months as a result of a Nunn-McCurdy review and 
recertification. The first production award for Increment 1b is 
scheduled to take place in the second quarter of fiscal year 
2013 using fiscal year 2012 carryover funding. The second 
production award is scheduled to occur in the fourth quarter of 
fiscal year 2013. Further delays would likely delay that award 
until the first fiscal quarter of 2014. The Committee 
recommendation includes $60,329,000 for Excalibur projectiles, 
a reduction of $50,000,000 from the request.

                        OTHER PROCUREMENT, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $7,924,214,000
Fiscal year 2013 budget request.......................     6,326,245,000
Committee recommendation..............................     6,488,045,000
Change from budget request............................       161,800,000
 

    This appropriation provides funds for the acquisition of 
tactical and commercial vehicles, including trucks, semi-
trailers, and trailers of all types to provide mobility and 
utility support to field forces and the worldwide logistical 
system; communications and electronic equipment of all types to 
provide fixed, semi-fixed, and mobile strategic and tactical 
communications; other support equipment, generators and power 
units, material handling equipment, medical support equipment, 
special equipment for user testing, and non-system training 
devices. In each of these activities, funds are also included 
for the modification of in-service equipment, investment spares 
and repair parts, and production base support,
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                      CONTAINER HANDLING EQUIPMENT

    Congress has provided funding for various types of 
container handling equipment including devices to be used with 
the Palletized Load System and Heavy Expanded Mobile Tactical 
Truck. Container Roll-in/out Platform (CROPs)/Flatracks, 
Enhanced Container Handling Units (ECHU), and Container 
Transfer Enhancements (CTE) have facilitated the transfer of 
heavy cargo in forward tactical areas in Iraq and Afghanistan. 
The budget request for fiscal year 2012 includes $35,833,000 
for 2,095 CROPs/Flatracks to fill requirements described as 
urgent for Stryker and Modular Brigade Combat Teams. The budget 
request also includes $23,105,000 for urgent requirements for 
548 Container Handling Units. However, obligation of the fiscal 
year 2012 funding for these items has lagged. Significant 
amounts also remain available from fiscal year 2011, and 
additional funds are included in the fiscal year 2013 request. 
The Army indicates that currently, the Container Handling Unit 
is preferred in use over CROPs/Flatracks and the slow budget 
execution is a result of changing requirements in the combat 
theater. The Committee appreciates actions taken by the Army to 
avoid spending funds on unneeded equipment. However, the abrupt 
change in requirements from one year to the next calls into 
question the accuracy and diligence of the Army's budget 
formulation process. The Committee understands that the Army 
expects to acquire no additional CROPs/Flatracks for the next 
three years. The Committee notes that after a three year break, 
substantial costs could be incurred to reestablish a production 
line and certify a producer. The Committee believes that better 
forecasting and inter-service coordination would assist both 
the industrial base and the armed services to ensure the 
availability of the required equipment. The Committee directs 
the Comptroller General to provide a report to the 
congressional defense committees not later than 90 days after 
enactment of this Act on the acquisition plan, requirement, and 
inventory for container handling equipment in the Army 
including CROPs/Flatracks, ECHU, CTE, and similar equipment in 
use by the Army. Additionally, the Committee directs that none 
of the funds in this Act or any other appropriations act for 
fiscal year 2013 or any previous fiscal year may be used to 
make payments for the procurement of container handling 
equipment for the Army including CROPs/Flatracks, ECHU, CTE, 
and similar equipment in use by the Army, until 30 days after 
receipt of the report by the Comptroller General.

                       AIRCRAFT PROCUREMENT, NAVY

 
 
 
Fiscal year 2012 appropriation........................   $17,675,734,000
Fiscal year 2013 budget request.......................    17,129,296,000
Committee recommendation..............................    17,518,324,000
Change from budget request............................       389,028,000
 

    This appropriation provides funds for the procurement of 
aircraft and related support equipment and programs; flight 
simulators; equipment to modify in-service aircraft to extend 
their service life, eliminate safety hazards and improve 
aircraft operational effectiveness; and spare parts and ground 
support equipment for all end items procured by this 
appropriation.
    The total amount recommended in this bill will provide the 
following program in fiscal year 2013:

                      F/A-18E/F TACTICAL AIRCRAFT

    The Committee believes a strong tactical aircraft fleet is 
vital to the Nation's security. The F/A-18E/F Super Hornet 
aircraft, which is nearing the end of its production run, is 
the Navy's current strike fighter workhorse. The future of Navy 
tactical aviation will be the F-35C Lightning II aircraft, 
which will bring a fifth generation strike fighter to the decks 
of the Nation's aircraft carriers. As a result of several 
variables, not the least of which has been the increased flight 
hours flown by the Navy's tactical aircraft fleet in support of 
conflicts around the world, the Navy has been faced with a 
strike fighter shortfall. To partially offset the severity of 
this shortfall, the Navy has begun a service life extension 
program for 150 of the legacy F-18 Hornet aircraft. While still 
in its infancy, this effort is expected to gain approximately 
1,400 flight hours per aircraft at a cost of approximately 
$25,000,000 per aircraft. The Committee notes that a new Super 
Hornet aircraft has a cost of approximately $55,000,000 and an 
expected service life of 9,000 flight hours. When comparing the 
two options, a new aircraft would provide six times the service 
life at just twice the cost. While it is not reasonable to 
close the entire strike fighter shortfall gap with new 
aircraft, a small quantity of new aircraft is an attractive 
alternative, especially considering the additional flight hours 
gained. Accordingly, the recommendation provides $605,000,000 
for the procurement of an additional eleven Super Hornet 
aircraft above the request.

                   EA-18G ELECTRONIC ATTACK AIRCRAFT

    The Department of the Navy has accomplished the Nation's 
airborne electronic attack (AEA) mission for the Department of 
Defense for several years. This mission has largely been 
performed with the EA-6B Prowler aircraft flown by the Navy and 
Marine Corps. The mission is currently transitioning to the EA-
18G Growler aircraft (a variant of the F/A-18 aircraft) as the 
Prowler aircraft age and are retired. There are currently 19 
airborne electronic attack squadrons in the Department of the 
Navy, however, only 15 Growler squadrons are planned. This is 
due to the fact that the Marine Corps will not fly the Growler 
aircraft but intends to move away from dedicated airborne 
electronic attack squadrons and shift to an organic capability 
using electronic warfare payloads such as Intrepid Tiger and 
the inherent capabilities within the F-35 aircraft. Although 
this approach is envisioned to satisfy the requirements of the 
Marine Corps, the Committee is concerned about the reduced AEA 
capability for the Nation at large. The Prowler aircraft (and 
the compatible AEA mission) has been a high demand, low density 
platform since the days of Desert Storm and is expected to 
continue as such. Accordingly, the recommendation provides 
$45,000,000 above the request for the advance procurement of 
materials for the construction of 15 additional EA-18G aircraft 
in fiscal year 2014 to preserve the option of increasing the 
quantity of this vital aircraft.

                       WEAPONS PROCUREMENT, NAVY

 
 
 
Fiscal year 2012 appropriation........................    $3,224,432,000
Fiscal year 2013 budget request.......................     3,117,578,000
Committee recommendation..............................     3,072,112,000
Change from budget request............................       -45,466,000
 

    This appropriation provides funds for the procurement of 
strategic and tactical missiles, target drones, torpedoes, 
guns, associated support equipment, and modification of in-
service missiles, torpedoes, and guns.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

            PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

 
 
 
Fiscal year 2012 appropriation........................      $626,848,000
Fiscal year 2013 budget request.......................       759,539,000
Committee recommendation..............................       677,243,000
Change from budget request............................       -82,296,000
 

    This appropriation provides funds for the acquisition of 
ammunition, ammunition modernization, and ammunition-related 
material for the Navy and Marine Corps.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                   SHIPBUILDING AND CONVERSION, NAVY

 
 
 
Fiscal year 2012 appropriation........................   $14,919,114,000
Fiscal year 2013 budget request.......................    13,579,845,000
Committee recommendation..............................    15,236,126,000
Change from budget request............................     1,656,281,000
 

    This appropriation provides funds for the construction of 
new ships and the purchase and conversion of existing ships, 
including hull, mechanical and electrical equipment, 
electronics, guns, torpedo and missile launching systems, and 
communication systems.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                              SHIPBUILDING

    The Navy's shipbuilding program is the centerpiece of the 
Navy's budget request. The Nation's fleet creates our forward 
presence, projects power, and maintains open sea lanes. The 
Committee is well aware that the sight of a U.S. Navy ship on 
the horizon makes a powerful strategic statement in any 
theater. The Committee strongly supports all actions to 
maintain the standing of the United States Navy as the world's 
preeminent sea power and a global good neighbor when 
humanitarian relief is required. The Committee is therefore 
puzzled by the Navy's priorities in its shipbuilding plan.
    As part of its new strategy, the Department of Defense has 
rebalanced toward the Asia-Pacific and Middle East regions of 
the world. Despite these regions having a significantly larger 
area of the world's oceans, the Navy plans to accelerate the 
decommissioning of seven guided missile cruisers, has reduced 
the shipbuilding budget by nearly eleven percent relative to 
the fiscal year 2012 appropriated level, and is reducing the 
total number of ships required to fulfill its requirements 
under this new strategy. The required fleet size has been 
reduced from 313 ships to approximately 300 ships in the long 
term, but the Navy will maintain 285 ships in the near term. 
The Navy has also deferred the procurement of an attack 
submarine and a guided missile destroyer, the backbone of the 
Navy's combatant fleet, from fiscal year 2014 to future years 
and, in their place has inserted a vessel known as the Afloat 
Forward Staging Base. This vessel would fill a very long 
standing (but never fulfilled) mission need. The Committee 
applauds the Navy for finally fulfilling such a long standing 
need but is confused by the timing of this action in an era of 
decreasing budgets and also by the fact that a submarine and 
destroyer are not being procured in fiscal year 2014 in part to 
make funding available for this new vessel.
    The decision to defer the procurement of a submarine and a 
destroyer is both confusing and concerning, especially the 
submarine. Since its inception in 1998, the Virginia Class 
Submarine program always intended to build two submarines per 
year. Although the second submarine repeatedly appeared in 
outyear budget projections, it was continually deferred by the 
Navy. The program finally reached a rate of two submarines per 
year in fiscal year 2011, largely due to the efforts of this 
Committee. Now, after only three years at this rate (2011 
through 2013), the Navy is again reducing the production rate. 
The Committee believes this decision will increase the cost of 
the submarines, result in production inefficiencies, and 
exacerbate the Navy's own predicted attack submarine shortfall. 
Additionally, with the impending addition of the SSBN 
replacement submarine to the shipbuilding budget, an event 
which will ``suck the air out of the Navy's shipbuilding 
budget'' according to a former Secretary of Defense, funding in 
the outyears will not be any easier to come by.
    The Committee believes the Navy recognizes the need to fund 
another destroyer and submarine in fiscal year 2014 since the 
Navy has approached the Committee with various plans and 
schemes to attempt to restore these ships to fiscal year 2014. 
One of these plans revolves around the incremental funding 
concept despite the fact that the Department's own financial 
management regulations and policies prohibit incremental 
funding of large end items such as ships, except under certain 
circumstances, none of which apply in this case. The Committee 
strongly supports these regulations and policies because fully 
funded end items do not commit future Congresses to obligations 
they may or may not agree with and also because they provide 
the ability to conduct much more complete, transparent, and 
rigorous program oversight. Incremental funding is certainly 
comparable to buying items on credit by deferring payments to 
the outyears.
    The Committee understands the constraints of the fiscal 
year 2014 budget, but to give up two highly prized combatants, 
and fund instead a vessel for a mission that can be (and has 
been) satisfied with existing ships, then attempt to restore 
those combatants through funding gimmicks in violation of the 
Department's own financial regulations is deeply troubling. The 
Committee firmly believes that a strong Navy shipbuilding 
program is absolutely essential for the Nation's security but 
will not mortgage the Nation's future to accomplish it. 
Accordingly, the recommendation provides an additional 
$1,000,000,000 above the request for the procurement of an 
additional DDG-51 guided missile destroyer. The Secretary of 
the Navy is directed to use this funding as part of the DDG-51 
multiyear procurement planned for fiscal years 2013 through 
2017 in order to achieve a lower cost and provide a more stable 
production base for the duration of the DDG-51 multiyear 
procurement. Finally, the recommendation provides an additional 
$723,000,000 above the request for advance procurement for the 
Virginia Class Submarine program. The Secretary of the Navy is 
directed to fully fund an additional submarine in fiscal year 
2014 to achieve a lower cost and stable production base through 
the course of the program's planned multiyear procurement.

                        OTHER PROCUREMENT, NAVY

 
 
 
Fiscal year 2012 appropriation........................    $6,013,385,000
Fiscal year 2013 budget request.......................     6,169,378,000
Committee recommendation..............................     6,364,191,000
Change from budget request............................       194,813,000
 

    This appropriation provides funds for the procurement of 
major equipment and weapons other than ships, aircraft, 
missiles, and torpedoes. Such equipment ranges from the latest 
electronic sensors for updates of naval forces, to trucks, 
training equipment, and spare parts.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                       PROCUREMENT, MARINE CORPS

 
 
 
Fiscal year 2012 appropriation........................    $1,422,570,000
Fiscal year 2013 budget request.......................     1,622,955,000
Committee recommendation..............................     1,482,081,000
Change from budget request............................      -140,874,000
 

    This appropriation provides funds for the procurement, 
production, and modification of equipment, supplies, materials, 
and spare parts.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                         LIGHT ARMORED VEHICLE

    The budget request proposes $186,216,000 for the Light 
Armored Vehicle (LAV) Product Improvement Program. The 
Committee recommendation provides $45,342,000, which is 
$140,874,000 below the request. The reduction is due to a 
change in the authorized acquisition objective for the LAV 
based on a planned end strength reduction and related 
elimination of three Light Armored Reconnaissance companies. 
The acquisition objective decreased from 1,005 to 930 vehicles.

                    AIRCRAFT PROCUREMENT, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................   $12,950,000,000
Fiscal year 2013 budget request.......................    11,002,999,000
Committee recommendation..............................    11,304,899,000
Change from budget request............................       301,900,000
 

    This appropriation provides for the procurement of 
aircraft, and for modification of in-service aircraft to 
improve safety and enhance operational effectiveness. It also 
provides for initial spares and other support equipment to 
include aerospace ground equipment and industrial facilities. 
In addition, funds are provided for the procurement of flight 
training simulators to increase combat readiness and to provide 
for more economical training.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                       F-22 BACKUP OXYGEN SYSTEM

    The Committee is concerned by the continuing problems with 
hypoxia-type events involving the F-22 and the Air Force's 
inability to determine a remediable root cause for this 
problem. As the military's only operational fifth generation 
fighter, the F-22 is critical to the implementation of the 
National Defense Strategy. Due to the small size of the F-22 
fleet, and the utmost importance of preserving the safety and 
readiness of F-22 pilots, the Committee strongly supports Air 
Force efforts to address this problem. The Committee 
understands that the Air Force is in the final stages of 
selecting a design for an automated backup oxygen system as a 
mitigation measure. The Committee's recommendation therefore 
includes $50,000,000 only for the procurement and installation 
of a backup oxygen system for the F-22. The Committee further 
directs the Air Force to provide regular updates to the 
Committee on physiological events involving F-22 pilots, 
impacts on flight operations, and the progress of efforts to 
discover and implement solutions.

                  C-130 AVIONICS MODERNIZATION PROGRAM

    The Air Force's fiscal year 2013 budget request proposes to 
terminate the C-130 Avionics Modernization Program (AMP). The 
C-130 AMP effort modernizes and standardizes the avionics and 
cockpit configurations on legacy C-130H aircraft, increasing 
the efficiency of the fleet and satisfying Communication, 
Navigation, and Surveillance/Air Traffic Management (CNS/ATM) 
mandates. In lieu of AMP, the Air Force proposes to initiate a 
new start program to satisfy CNS/ATM mandates only. The 
Committee does not concur with the Air Force's proposal to 
terminate C-130 AMP. The Committee is not satisfied that the 
Air Force has performed adequate cost-benefit analysis on AMP 
termination. Even though previous Air Force budget documents 
have stated that AMP will lower total ownership costs for the 
C-130 fleet, the Air Force has failed to provide the Committee 
with a life-cycle cost analysis that would allow the Committee 
to weigh the immediate budgetary benefits of AMP termination 
against the long term costs of maintaining a heterogeneous C-
130H fleet and retaining the navigator position. At the same 
time, the Committee acknowledges the Air Force's need to lower 
the upfront costs of the program. The Committee recommends 
increases of $10,000,000 each to the Aircraft Procurement, Air 
Force and Research, Development, Test and Evaluation, Air Force 
accounts to continue the current AMP program with the provision 
that the Secretary of the Air Force and the prime contractor 
should engage in efforts to reduce the average procurement unit 
cost of AMP modifications to less than $10,000,000 in base year 
dollars.

             B-52 COMBAT NETWORK COMMUNICATIONS TECHNOLOGY

    The Air Force's fiscal year 2013 budget request proposes a 
restructuring of the B-52 Combat Network Communications 
Technology (CONECT) effort. CONECT provides multiple hardware 
upgrades to the B-52 to enhance communications and increase 
situational awareness, allowing for timely re-tasking and 
weapons re-targeting capability that greatly improves the 
mission flexibility of the B-52. The Air Force's proposed 
restructuring would reduce program content to replacement of 
the aircraft's visual displays and reliance on the temporary, 
laptop-based Evolutionary Data Link modification as the 
permanent solution, which would provide significantly less 
capability. The Committee discerns no rationale for this 
restructuring other than a short-term need to meet budget 
constraints. The Committee directs the Secretary of the Air 
Force to continue with the B-52 CONECT effort using funds 
previously appropriated for this program. The Committee also 
recommends a reduction of $34,700,000 from the fiscal year 2013 
request for research, development, test and evaluation, 
eliminating funds requested to develop the restructured program 
and de-modify a B-52 test aircraft previously modified for 
CONECT.

                                 C-130J

    The Air Force's future years defense program for fiscal 
years 2012-2016 projected a requirement for twelve additional 
C-130J aircraft in fiscal year 2013. Congress authorized and 
appropriated $120,000,000 in fiscal year 2012 for advance 
procurement of these 12 aircraft. The Air Force's fiscal year 
2013 budget request includes only seven aircraft. The 
Committee's recommendation includes additional funds to restore 
procurement of one C-130J, two HC-130J, and two MC-130J 
aircraft. The Committee directs the Secretary of the Air Force 
to use fiscal year 2012 C-130J advance procurement funds for 
the purposes for which such funds were originally appropriated.

                     WAR READINESS ENGINE SHORTFALL

    The Committee understands that the Air Force faces a 
shortfall of useable F-100-229 engines for the F-15 and F-16 
fleets as compared to the War Readiness Engine (WRE) objective. 
Given that the Air Force will continue to rely on the F-15 and 
F-16 well into the foreseeable future, and that service life 
extension requirements for these aircraft continue to grow, 
maintaining the fleets at the highest feasible state of 
readiness is imperative. The Committee urges the Secretary of 
the Air Force to budget for the full WRE objective for the F-
100-299 and all other engines that have similar shortfalls.

                     MISSILE PROCUREMENT, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................    $6,080,877,000
Fiscal year 2013 budget request.......................     5,491,846,000
Committee recommendation..............................     5,449,146,000
Change from budget request............................       -42,700,000
 

    This appropriation provides funds for the procurement, 
installation, and checkout of strategic ballistic and other 
missiles, modification of in-service missiles, and initial 
spares for missile systems. It also provides for operational 
space systems, boosters, payloads, drones, associated ground 
equipment, non-recurring maintenance of industrial facilities, 
machine tool modernization, and special program support.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                              SPACE LAUNCH

    The Committee supports the Air Force's initiative to 
achieve competition in the space launch enterprise. While the 
Evolved Expendable Launch Vehicle (EELV) program has achieved 
considerable progress with 49 successful launches to date, the 
costs for this program have been difficult to justify and have 
been a source of concern. The Committee is pleased that the 
EELV program will be reviewed as part of the Nunn-McCurdy 
recertification process and is eager to see the results. The 
Committee also supports the New Entrant Certification 
initiative that should enable competition and lead to 
additional cost savings.

   SPACE BASED INFRARED SYSTEM AND ADVANCED EXTREMELY HIGH FREQUENCY 
                      SATELLITE SYSTEM PROCUREMENT

    The Committee has supported an incremental funding approach 
for Advanced Extremely High Frequency (AEHF) satellites numbers 
five and six and supports the same approach for Space Based 
Infrared System (SBIRS) satellites numbers five and six. 
However, the cost estimate for these satellites appears to be 
extremely conservative. Based on past development histories, 
this would seem prudent; however, since these are production 
satellites with little non-recurring engineering required, the 
excess funding is not required. Therefore, the Committee 
directs that the Secretary of the Air Force, in conjunction 
with the Office of the Secretary of Defense, Cost Assessment 
and Program Evaluation, shall provide to the congressional 
defense committees not later than 30 days after enactment of 
this Act a report that shows the should-cost estimate, the 
costs for robust sparing, and the unit and total costs for 
buying three satellites rather than the current quantity of two 
for both the AEHF and SBIRS systems. If the approved 
acquisition strategy does not support the most economical 
procurement of these vehicles, the report should explain such 
differences.

                  PROCUREMENT OF AMMUNITION, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................      $499,185,000
Fiscal year 2013 budget request.......................       599,194,000
Committee recommendation..............................       599,194,000
Change from budget request............................             - - -
 

    This appropriation provides funds for the acquisition of 
ammunition, modifications, spares, weapons, and other 
ammunition-related items for the Air Force.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                      OTHER PROCUREMENT, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................   $17,403,564,000
Fiscal year 2013 budget request.......................    16,720,848,000
Committee recommendation..............................    16,632,575,000
Change from budget request............................       -88,273,000
 

    This appropriation provides funds for the procurement of 
weapon systems and equipment other than aircraft and missiles. 
Included are vehicles, electronic and telecommunications 
systems for command and control of operational forces, and 
ground support equipment for weapon systems and supporting 
structure.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                       PROCUREMENT, DEFENSE-WIDE

 
 
 
Fiscal year 2012 appropriation........................    $4,893,428,000
Fiscal year 2013 budget request.......................     4,187,935,000
Committee recommendation..............................     4,429,335,000
Change from budget request............................       241,400,000
 

    This appropriation provides funds for the procurement, 
production, and modification of equipment, supplies, materials, 
and spare parts.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

  SPECIAL OPERATIONS COMMAND AVIATION FOREIGN INTERNAL DEFENSE PROGRAM

    The budget request contains $97,700,000 in the Non-Standard 
Aviation Program for procurement of aircraft for the Aviation 
Foreign Internal Defense (AvFID) program, and $7,500,000 for 
the U-28 program. The Committee is aware that the Special 
Operations Command has changed its strategy regarding the AvFID 
and U-28 programs subsequent to submission of the fiscal year 
2013 budget request. The Committee recommendation reflects 
implementation of the revised strategy by transferring funds 
requested for AvFID procurement to the U-28 program.
    The Committee understands that the revised strategy will 
combine the Non-Standard Aviation (NSAV) light program and the 
AvFID program with resulting efficiencies in training, 
maintaining, and supporting of forward deployed combined units. 
The Committee believes that this decision to combine the two 
programs will create efficiencies through reduced acquisition 
and operational costs and leverage the existing logistical and 
operational expertise experiences of the Air Force Special 
Operations Active and reserve components. The Committee notes 
that the overall program realignment of assets will result in 
an estimated reduction of contractor logistics support costs by 
approximately $53,000,000 between fiscal years 2013 and 2017.
    The Committee encourages the Commander, U.S. Special 
Operations Command and the Commander, Air Force Special 
Operations Command (AFSOC) to continually and comprehensively 
validate geographic combatant commander requirements for AvFID 
and NSAV and to prioritize in a way that will ensure a globally 
persistent and effective presence that contributes to security 
force assistance and national security objectives. The 
Committee also encourages the Commander, AFSOC to refine global 
site selection to optimize operational an logistical support 
and to continue efforts to reduce contracted logistics support 
across the Future Years Defense Program.

                  NATIONAL GUARD AND RESERVE EQUIPMENT

 
 
 
Fiscal year 2012 appropriation........................    $1,000,000,000
Fiscal year 2013 budget request.......................             - - -
Committee recommendation..............................     2,000,000,000
Change from budget request............................     2,000,000,000
 

                                                        
                                                        
                  NATIONAL GUARD AND RESERVE EQUIPMENT

    The National Guard and reserve forces regularly receive 
less than a proportionate share of funding to resource their 
dual-use equipment needs. However, the role of the reserve 
components in providing fully equipped, trained, and ready 
forces in the Services' force generation models is essential. 
The readiness of the National Guard and reserve units is 
imperative.
    The Committee recommendation for the National Guard and 
Reserve Equipment Account (NGREA) is $2,000,000,000. Of that 
amount, $650,000,000 is for the Army National Guard; 
$650,000,000 for the Air National Guard; $300,000,000 for the 
Army Reserve; $140,000,000 for the Navy Reserve; $120,000,000 
for the Marine Corps Reserve; and $140,000,000 for the Air 
Force Reserve to meet urgent equipment needs that may arise in 
fiscal year 2013.
    This funding will allow the Guard and reserve components to 
procure high priority equipment that may be used by these 
components for both their combat missions and their missions in 
support of state governors. This funding will allow the 
National Guard and reserve components to procure items such as: 
Generation 4 Advanced targeting pods, internal and external 
auxiliary fuel tank systems for Apaches and Chinooks, Green 
Laser Interdiction Systems, propeller balancing systems, ultra-
light tactical vehicles, handheld laser trackers, tactical 
radios, tactical trailers, and field engineering, logistics, 
and maintenance equipment.
    The use of simulation training systems has yielded a 
military that is better trained, more capable, and more 
confident as compared to units that do not have access to 
modern simulation training devices. Simulation training is a 
cost effective means by which reserve units can improve 
tactical decision-making skills and ultimately save lives. It 
is anticipated that a portion of this funding will be used to 
procure a variety of simulation training systems. To ensure the 
most efficient and effective training program, these systems 
should be a combination of both government owned and operated 
simulators and simulation support from a dedicated commercial 
activity capable of providing frequent hardware and software 
updates.
    Additionally, the Committee recognizes that adding 
capability and modernizing equipment unique to the reserve 
component or legacy systems with limited active component 
investment may require design, integration, test, and software 
efforts prior to procurement. Therefore, for fiscal year 2013, 
on a one year trial basis, bill language is included that will 
allow the use of up to three percent of the respective reserve 
component's NGREA appropriation, as needed, for research, 
development, test and evaluation for federal and domestic 
operations requirements as they relate to equipping the reserve 
components.

                    DEFENSE PRODUCTION ACT PURCHASES

 
 
 
Fiscal year 2012 appropriation........................      $169,964,000
Fiscal year 2013 budget request.......................        89,189,000
Committee recommendation..............................        63,531,000
Change from budget request............................       -25,658,000
 

    The Committee recommendation shall be distributed as 
follows:

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                        (In thousands of dollars)
------------------------------------------------------------------------
                                                                Change
               P-1                    Budget     Committee       from
                                     request    Recommended    request
------------------------------------------------------------------------
DEFENSE PRODUCTION ACT
------------------------------------------------------------------------
GALLIUM NITRIDE RADAR AND                5,031        5,031  ...........
 ELECTRONIC WARFARE MONOLITHIC
 MICROWAVE INTEGRATED CIRCUITS...
CADMIUM ZINC TELLURIDE SUBSTRATE         1,900        1,900  ...........
 PRODUCTION......................
READ OUT INTEGRATED CIRCUIT              1,200        1,200  ...........
 FOUNDRY IMPROVEMENT AND
 SUSTAINABILITY..................
SPACE QUALIFIED SOLAR CELL SUPPLY        1,000        1,000  ...........
 CHAIN...........................
TRAVELING WAVE TUBE AMPLIFIERS...        1,320        1,320  ...........
COMPLEMENTARY METAL OXIDE                1,800        1,800  ...........
 SEMICONDUCTOR FOCAL PLAN ARRAYS
 FOR VISIBLE SENSORS FOR STAR
 TRACKERS........................
ADVANCED PROJECTS................        1,280        1,280  ...........
PRODUCTION BASE INVESTMENT               5,658            0       -5,658
 ASSESSMENTS AND ACTIVITIES......
    Program reduction............                    -5,658  ...........
ADVANCED DROP-IN BIOFUEL                70,000            0      -70,000
 PRODUCTION......................
    Ahead of need................                   -70,000  ...........
PROGRAM INCREASE.................                    50,000  ...........
------------------------------------------------------------------------
  TOTAL, DEFENSE PRODUCTION ACT         89,189       63,531      -25,658
------------------------------------------------------------------------

                  ADVANCED DROP-IN BIOFUEL PRODUCTION

    The request includes $70,000,000 for the construction or 
retrofit of domestic commercial (or pre-commercial) scale 
advanced drop-in biofuel plants and refineries. The Committee 
understands that the Department has allocated $100,000,000 of 
the $150,000,000 program addition to the fiscal year 2012 
Defense Production Act account for this effort and that 
$70,000,000 of this funding likely will not execute until well 
into fiscal year 2013 or even into fiscal year 2014. While the 
Committee is supportive of alternative energy development, in 
these times of decreasing budgets, it does not seem prudent to 
stockpile funds so far ahead of need. Accordingly the 
recommendation provides no funding for this effort in fiscal 
year 2013. The Committee urges the Secretary of Defense to 
request this funding in future years when it can execute in a 
timely manner.
                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The fiscal year 2013 Department of Defense research, 
development, test and evaluation budget request totals 
$69,407,767,000. The accompanying bill recommends 
$69,984,145,000. The total amount recommended is an increase of 
$576,378,000 above the fiscal year 2013 budget request and is 
$2,436,530,000 below the total provided in fiscal year 2012. 
The table below summarizes the budget estimate and the 
Committee's recommendations.

                          SYSTEMS ENGINEERING

    The Committee recognizes the importance of a strong systems 
engineering workforce for the success of acquisition programs 
within the Department of Defense. Studies indicate that early 
and sustained investment in systems engineering reduces the 
likelihood of cost and schedule overruns in acquisition 
programs.
    The Committee is concerned that the Department exhibits 
inconsistency in its approach to systems engineering. The 
Defense Acquisition Guidebook defines systems engineering as 
``an interdisciplinary approach encompassing the entire 
technical effort to evolve and verify an integrated and total 
life cycle balanced set of system, people, and process 
solutions that satisfy customer needs, and the integrating 
mechanism across all technical efforts related to the 
development, manufacturing, verification, deployment, 
operations, support, disposal of, and user training for systems 
and their life cycle processes.'' This definition is consistent 
with many others that distinguish systems engineering, a 
multidisciplinary and integrative effort, from other 
engineering disciplines.
    By contrast, the Department's approach to its systems 
engineering workforce does not distinguish between the limited 
cadre of government engineers with the education, experience, 
and record of past performance that qualifies them as true 
systems engineers, and the rest of its engineering workforce. 
Given the challenges the Department faces in recruiting and 
retaining these highly sought-after individuals, the Committee 
views the Department's inability to track the level of real 
systems engineering expertise in its workforce as a key 
deficiency that must be addressed. The current lack of 
visibility clouds the Department's knowledge of this vital 
element of its workforce, with implications for staffing, 
succession planning, and ultimately, program performance. Of 
particular concern is the fact that pending personnel 
reductions may result in the loss of hard-to-replace senior 
systems engineering talent and promising future systems 
engineers.
    The Department conducts a wide range of Science, 
Technology, Engineering, and Mathematics (STEM) outreach 
programs aimed at all education levels to encourage students to 
pursue careers in these fields. Recruiting personnel with STEM 
backgrounds would logically help improve the quality of the 
systems engineering workforce.
    The Committee urges the Secretary of Defense to establish a 
mechanism for identifying and tracking personnel within the 
Department's organic acquisition workforce whom the Department 
recognizes as being qualified in the discipline of systems 
engineering, on the basis of education, experience, and such 
other factors as it may identify (such as prior performance). 
Additionally, the Committee believes it would benefit the 
Department to track the effectiveness of its many STEM outreach 
programs in an effort to determine if these programs are 
actually resulting in an improved STEM (including systems 
engineers) workforce within the Department.

           DEPARTMENT OF DEFENSE AND SERVICE CYBER ACTIVITIES

    The Committee acknowledges the threat to and from the cyber 
realm and believes it has been well documented; however, the 
resources being expended against the threat have not. In order 
to better evaluate the planning and resourcing for Department 
of Defense cyber activities, the Committee directs the 
Commander, United States Cyber Command, in coordination with 
the Secretary of Defense and each of the Service Secretaries, 
to provide the congressional defense committees separate budget 
justification material, in the form of budget documents as 
defined in the Department's financial management regulation, 
that details the year-to-year budgets, schedule, and milestone 
goals over the Future Years Defense Program for the individual 
programs that support the goals of cyber initiatives. The 
programs detailed must include cyberspace operations, computer 
network operations, information assurance, and full spectrum 
cyber operations for the Department of Defense and the 
Services. Further, the Committee suggests that the Department 
continue to refine what activities, budget lines, and programs 
should be considered cyber in order to better coordinate and 
track these budgets.

                       ADVANCED HYPERSONIC WEAPON

    The Committee is aware that the United States Army Space 
and Missile Defense Command/Army Forces Strategic Command 
conducted the first test flight of the Advanced Hypersonic 
Weapon (AHW) concept on November 17, 2011. The AHW is designed 
to fly within the earth's atmosphere at hypersonic speed and 
long range. In the test, a three-stage booster system launched 
the AHW glide vehicle and deployed it on the desired flight 
trajectory. The vehicle flew a non-ballistic glide trajectory 
at hypersonic speed to the planned impact location. The 
Committee will follow the program as it advances. The Committee 
directs the Secretary of Defense to provide a report to the 
congressional defense committees not later than 60 days after 
enactment of this Act on plans for future development and 
testing of the Advanced Hypersonic Weapon. The report shall 
include the program plan and funding allocation for fiscal year 
2012, fiscal year 2013, and the Future Years Defense Program 
through 2017, for Prompt Global Strike and the Navy Strategic 
Systems Project Office.

                         SPECIAL INTEREST ITEMS

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

            REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

    It is the intent of the Congress that the program baseline 
for re-programming funds reflects all approved adjustment 
actions: the initial appropriation as well as any rescissions, 
supplemental appropriations, and approved Department of Defense 
Form 1415 reprogrammings. The Secretary of Defense is directed 
to ensure that financial management regulations incorporate 
approved reprogramming actions as an adjustment to the base for 
reprogramming value.
    The Committee directs the Secretary of Defense to continue 
to follow the reprogramming guidance specified in the report 
accompanying the House version of the Department of Defense 
Appropriations Act, 2006 (H.R. 109-119). Specifically, the 
dollar threshold for reprogramming funds will remain at 
$20,000,000 for procurement and $10,000,000 for research, 
development, test and evaluation. The Secretary of Defense 
shall continue to follow the limitation that prior approval 
reprogrammings are set at either the specified dollar threshold 
or 20 percent of the procurement or research, development, test 
and evaluation line, whichever is less. The percentage change 
limitation applies to both program increases and decreases. 
Additionally, this percentage change applies to the program 
base value at the time the below threshold movement of funds is 
executed. These thresholds are cumulative from the base for 
reprogramming value as modified by any adjustment action. 
Therefore, if the combined value of transfers into or out of a 
procurement (P-1) or research, development, test and evaluation 
(R-1) line exceeds the identified threshold, the Secretary of 
Defense must submit a prior approval reprogramming to the 
congressional defense committees. In addition, guidelines on 
the application of prior approval reprogramming procedures for 
congressional special interest items are established elsewhere 
in this report.

                  REPROGRAMMING REPORTING REQUIREMENTS

    The Committee directs the Under Secretary of Defense 
(Comptroller) to continue to provide the congressional defense 
committees quarterly, spreadsheet-based DD Form 1416 reports 
for service and defense-wide accounts in titles III and IV of 
this Act as required in the explanatory statement accompanying 
the Department of Defense Appropriations Act, 2006.

                           FUNDING INCREASES

    The Committee directs that the funding increases outlined 
in these tables shall be provided only for the specific 
purposes indicated in the tables.

                            CLASSIFIED ANNEX

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

            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

 
 
 
Fiscal year 2012 appropriation........................    $8,745,492,000
Fiscal year 2013 budget request.......................     8,929,415,000
Committee recommendation..............................     8,593,055,000
Change from budget request............................      -336,360,000
 

    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of the Army. The total amount recommended in the bill will 
provide the following program in fiscal year 2013:

                      MEDIUM EXTENDED AIR DEFENSE

    The budget request for fiscal year 2013 proposes to provide 
$400,861,000 for the final year of funding for the Medium 
Extended Air Defense (MEADS) proof of concept. While the 
Committee recognizes that some additional benefit might be 
realized by additional funding, the expected benefits do not 
justify the cost. The Committee recommendation includes no 
funding for MEADS.

                          ROBOTIC DEVELOPMENT

    Recognizing the increased need to use unmanned systems as a 
means to maintain U.S. military capabilities in the face of 
likely reductions in manpower, the Committee encourages the 
Secretary of the Army to accelerate efforts to develop and 
deploy operational, prototype ground robotics systems utilizing 
both traditional and non-traditional suppliers.

            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

 
 
 
Fiscal year 2012 appropriation........................   $17,753,940,000
Fiscal year 2013 budget request.......................    16,882,877,000
Committee recommendation..............................    16,987,768,000
Change from budget request............................       104,891,000
 

    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of the Navy, which includes the Marine Corps. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                               FIRESCOUT

    The MQ-8 Firescout vertical take-off and landing unmanned 
aerial vehicle will provide intelligence, surveillance, and 
reconnaissance data to users without the use of manned aircraft 
or reliance on national assets. The Navy's original plan for 
this platform was for use in the mission packages onboard the 
Littoral Combat Ships. With the delay in construction and 
fielding of these ships, the aircraft has migrated to other 
roles and missions, which has disrupted the testing and 
development schedule, resulting in a concurrent development, 
testing, and production schedule. The current state of this 
program is not unlike the Joint Strike Fighter program, 
although both programs have arrived at their current state via 
different paths. Concurrency in an acquisition program is 
undesirable in that end items are being procured despite the 
development and testing being incomplete. This condition 
typically results in the need to modify, at some cost, these 
end items as problems are discovered and resolved. Recent 
examples of issues in the Firescout program include one 
aircraft that was unable to be recovered on its host ship and 
ultimately crashed into the water, and another aircraft that 
lost communications with its control station and was lost while 
conducting operations. These incidents have resulted in the 
Firescout fleet being grounded from routine operations. 
Additionally, the Firescout program is in the midst of a 
transition from the MQ-8B variant to the MQ-8C variant, which 
will possess much greater endurance relative to the MQ-8B. 
However, this transition has been delayed as not all components 
of the MQ-8C variant are ready for production. The result of 
the delay in transitioning variants in this program has been 
the stockpiling of development funding. The program essentially 
has two years of development funding to expend in fiscal year 
2012 and undoubtedly a large portion of that will carry over to 
fiscal year 2013. Therefore the recommendation provides 
$33,600,000 for the development of the Firescout program, a 
reduction of $66,000,000.
    The Committee recognizes the parallels between this program 
and the Joint Strike Fighter program. The F-35B variant of the 
Joint Strike Fighter was placed on probation as a result of 
some of the technical challenges it faced. Although probation 
was never specifically defined for the Committee, the 
Department recently removed the F-35B from probation, an 
indication that the strategy achieved its objectives. The 
Committee urges the Secretary of the Navy to use a similar 
strategy on the Firescout program and report to the 
congressional defense committees not later than 90 days after 
enactment of this Act on the strategy and its planned 
objectives.

                          BONE MARROW REGISTRY

    The bill includes $31,500,000 for the Department of the 
Navy to be administered by the Bone Marrow Registry, also known 
as and referred to within the Naval Medical Research Center as 
the C.W. Bill Young Marrow Donor Recruitment and Research 
Program. Funds appropriated for the Bone Marrow Registry shall 
remain available only for the purposes for which they were 
appropriated and may only be obligated for the Bone Marrow 
Registry. This Department of Defense donor center has recruited 
more than 700,000 Department of Defense volunteers and provides 
more marrow donors per week than any other donor center in the 
nation. More than 18,000 servicemembers and other Department 
volunteers from this donor center have provided marrow to save 
the lives of patients. The success of this national and 
international life-saving program for military and civilian 
patients, which now includes more than 10,000,000 potential 
volunteer donors, is admirable. Further, the agencies involved 
in contingency planning are encouraged to continue to include 
the Bone Marrow Registry in the development and testing of 
their contingency plans. The Department of Defense form (DD 
Form 1414) shall show this as a congressional interest item. 
The Department is further directed to release all of the funds 
appropriated for this purpose to the Bone Marrow Registry not 
later than 60 days after enactment of this Act.

                    ELECTRONIC EQUIPMENT MAINTENANCE

    The Committee is aware that the Navy has included low cost 
electronic system maintenance and distance support tools as 
part of the Aegis cruiser and destroyer modernization programs, 
resulting in improved readiness for Aegis ships. The Committee 
urges the Navy to develop these tools and practices for other 
platforms, including the Littoral Combat Ship.

                       AUTOMATED TEST AND RE-TEST

    The Committee is aware that the Navy's automated test and 
re-test (ATRT) project has reduced labor requirements for 
testing, improved system performance, and reduced cost for 
systems where the tool has been applied. The Committee believes 
with the advent of software intensive systems that the 
potential savings through the use of ATRT has only begun to be 
realized and encourages the Secretary of the Navy to expand the 
use of ATRT to other programs and systems and to expedite the 
execution of funding allocated towards this resource.

                    STRATEGIC SUBMARINE REPLACEMENT

    The Committee is concerned with the national security and 
programmatic risks associated with the Department's decision to 
delay the Ohio class ballistic missile submarine replacement 
program. The Committee expects the Secretary of the Navy to 
conduct close and frequent oversight of this program to ensure 
that these risks are minimized.

         RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

 
 
 
Fiscal year 2012 appropriation........................   $26,535,996,000
Fiscal year 2013 budget request.......................    25,428,046,000
Committee recommendation..............................    25,117,692,000
Change from budget request............................      -310,354,000
 

    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of the Air Force. The total amount recommended in the bill will 
provide the following program in fiscal year 2013:

     SPACE SYSTEM ACQUISITION AND SYSTEM MODERNIZATION INITIATIVES

    The Committee is concerned that, in a time of declining 
budgets, the Air Force and the Department of Defense may resort 
to silver-bullet acquisition concepts in an attempt to save 
money and accelerate immature concepts and technologies. As the 
past two decades have proven, acquisition of space systems 
requires components with high technology readiness levels, as 
well as program managers, engineers, and organizations that 
have long histories of developing the system concepts to the 
point that many of the inevitable problems have been recognized 
and resolved. Quick-fix substitutes for years of hard-won 
experience are attractive but illusory. The Committee supports 
the concept of evolutionary modifications but believes that 
complete utilization of the systems that have been in 
development and production for the past two decades should be 
given priority. The Committee recommends that the Air Force re-
evaluate the choices of capabilities being pursued in the 
System Modernization Initiative effort and prioritize full 
utilization of fielded capabilities through ground and terminal 
enhancements, rather than future sensor enhancements.

            SPACE BASED INFRARED SYSTEM GROUND ENHANCEMENTS

    The Committee recommends $50,000,000 for acceleration of 
the Space Based Infrared System (SBIRS) ground segment 
automated sensor tasking, which will allow the scanning sensor 
and the staring sensor to cue off each other and provide more 
accurate track for missile warning and tracking. Further, based 
on the current launch schedule of the various SBIRS system 
components, the Committee is concerned that the ground segment 
needs enhancement to command and control the projected 
constellation. The Committee also recommends $50,000,000 for 
ground enhancement that will support the growth of command and 
control capability beyond the originally approved 
constellation.

                        MOVING TARGET INDICATOR

    The Committee understands that the Air Force and the 
Department of Defense will soon complete the Synthetic Aperture 
Radar/Moving Target Indicator and Joint STARS mission area 
analysis of alternatives (AoA). The Committee is concerned by 
the extended length of time that has been required to complete 
the AoA and the uncertainty regarding the Air Force's future 
budget requirements for this vital mission. The Committee 
understands that the Department's final determination on the 
AoA will inform a Material Development Decision to achieve a 
solution for future requirements. The Committee has therefore 
included an increase of $10,000,000 to Battle Management, 
Command and Control Sensor Development to initiate any new 
programs required as a result of the AoA.

                                 KC-46A

    The Committee directs the Secretary of the Air Force to 
continue to submit quarterly reports on any KC-46A contract 
modifications with a cost greater than or equal to $5,000,000, 
as directed by the explanatory statement accompanying the 
Consolidated Appropriations Act, 2012.

                  JOINT STRIKE FIGHTER DECONTAMINATION

  The Committee notes that, since 2001, Congress has 
appropriated funds to develop new technologies and techniques 
to decontaminate complex weapons systems and related equipment 
to protect against the threat of contamination by chemical or 
biological agents. Although system components have been 
developed to deliver decontamination technologies in a variety 
of environmental and field conditions, the Committee is 
concerned that no funding was requested for fiscal year 2013 to 
further Joint Strike Fighter (JSF) decontamination system 
development, begin system integration, and complete system 
validation. As a mission critical system, the F-35 is required 
by Department of Defense policy to be survivable in chemical, 
biological, radiological, and nuclear (CBRN) environments. 
Accordingly, the Committee directs the Air Force to make as a 
high priority investments in technologies that will ensure the 
safety of pilots in potentially contaminated environments, and 
to ensure that funding for such investments is adequately 
phased to support CBRN survivability requirements for the JSF 
and other mission critical systems.

        RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

 
 
 
Fiscal year 2012 appropriation........................   $19,193,955,000
Fiscal year 2013 budget request.......................    17,982,161,000
Committee recommendation..............................    19,100,362,000
Change from budget request............................     1,118,201,000
 

    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of Defense for defense-wide activities. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

 HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND MINORITY INSTITUTIONS

    The Committee noted with concern in fiscal year 2012 that 
the Department transferred the Historically Black Colleges and 
Universities and Minority Institutions (HBCU/MI) program from 
the Office of the Secretary of Defense to the Department of the 
Army, thus dramatically diminishing the effectiveness and scope 
of the program.
    At the request of the Department, after the budget 
submission, the Committee has transferred funding from the 
Army, thus returning the program's execution to the Office of 
the Secretary of Defense. The Committee encourages the 
Department to maintain this account in this budget line in 
future budget submissions.

      SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS EDUCATION

    The Committee notes with increasing concern the 
underperformance of students in science and math, and 
recognizes efforts being made at the Department to remedy these 
concerns. The Committee recommends that the Department explore 
the expansion of programs in science, technology, engineering 
and mathematics for grades K through 12 that are comprehensive 
in nature, provide curriculum for in-school and after-school 
programs, and promote an overall appreciation for the subject 
matter.

           EXPANDING UNDERREPRESENTED MINORITY PARTICIPATION

    Consistent with the National Academy of Sciences report 
``Expanding Underrepresented Minority Participation: America's 
Science and Technology Talent at the Crossroads'', the 
Committee recognizes the importance of ensuring that there is a 
strong pipeline of underrepresented minorities pursuing 
engineering, science, and technology careers. The Committee 
commends public-private partnerships that have come together to 
ensure scholarship support, innovative ideas like Academies of 
Engineering in high schools, and corporate partnership and 
sponsorship of district, urban, and rural areas to build a 
minority pipeline in key fields like engineering, which are 
needed for both national security and national economic reasons 
and by virtually every federal science and technology agency. 
The Committee encourages the Secretary of Defense to provide 
resources for scholarships for minorities in engineering and to 
promote the collection of research information on the status of 
minorities in engineering education and employment.

          SPECIAL OPERATIONS COMMAND UNDERSEA MOBILITY PROGRAM

    The Committee is concerned that frequent program and 
strategy changes to the Undersea Mobility Program have delayed 
the introduction of advanced capabilities for both wet combat 
submersible replacement and dry combat submersible development. 
The current program schedule for dry combat submersibles will 
not field an operational evaluation platform until early 2015 
with extended integrated testing not taking place until 2016. 
Given current dry combat submersible capability gaps and a 
potential shift in strategic emphasis to the Asia-Pacific and 
other regions that present anti-access and area-denial 
challenges, the Committee believes successful development and 
fielding of undersea mobility capabilities are critical to 
meeting combatant commanders' needs. Additionally, the 
Committee is concerned that the highly perishable and technical 
operational expertise for wet and dry combat submersibles 
resident within the Naval Special Warfare community have not 
been fully exercised and utilized in recent years, thereby 
increasing capability gaps and risks to the overall program.
    The Committee recommends $35,000,000 above the request for 
the Undersea Mobility Program for the dry combat submersible 
program to enable the program to undertake risk reduction 
activities, thereby increasing the likelihood of delivery of a 
technically satisfactory system that meets the warfighter's 
requirements.

               DEFENSE PERSONNEL SECURITY RESEARCH CENTER

    It is essential that the Department of Defense conducts 
proper background investigations for employees in a prompt and 
efficient manner. Workplace efficiency and morale decline when 
an employee is unable to work due to a delay in security 
clearance processing. The Committee is concerned that the 
Department is not investing enough in automated tools necessary 
to expedite the investigation and reinvestigation process for 
security clearances. The Committee encourages the Secretary of 
Defense to invest in automated tools capable of performing 
queries across government and commercial databases to 
streamline the time-consuming process for top level security 
clearances.

                   ADVANCED REMOTE SENSOR TECHNOLOGY

    The Committee recommendation includes $33,742,000 for the 
Advanced Remote Sensor Technology (ARST) program of the Missile 
Defense Agency. The focus of ARST is to develop and mature 
emerging sensor technologies capable of three-dimensional 
missile imaging and tracking to discriminate threats from a 
single platform. The Committee expects funding will enable the 
Missile Defense Agency to demonstrate a baseline sensor 
capability with instantaneous, three-dimensional imagery and 
precision track data on every frame at video rates. The 
Committee sees strong potential for utilizing this capability 
not only on space-based assets, but from remotely-piloted 
aircraft as a risk reduction for space-based platforms. 
However, the Committee notes that although this program is a 
follow-on effort from the Airborne Infrared system, it is 
considered a new start, and thus the Committee recommendation 
aligns funding with the request levels throughout the Future 
Years Defense Program.

    STANDARD MISSILE-3 RISK REDUCTION FOR THE MISSILE DEFENSE AGENCY

    The Committee is concerned that there are certain 
components for missile defense systems that only have one or 
two suppliers in the area of design and production. This is 
especially true for the producers of the Standard Missile-3 
(SM-3) interceptor's Divert and Attitude Control System which 
guides the kill vehicle during the final phase of its intercept 
operations. The Committee encourages the Director, Missile 
Defense Agency to fund risk reduction activities for the 
continued development of components essential to the production 
of SM-3 interceptors.

                         SEMICONDUCTOR INDUSTRY

    The Committee is concerned about the ability of the United 
States to maintain its global leadership in the production of 
semiconductor manufacturing equipment. In order to ensure U.S. 
dominance in this critical technology sector and that the 
Department of Defense has long-term, reliable domestic access 
to the most advanced technologies to manufacture and service 
next generation semiconductor fabrication technology, the 
Committee directs the Department of Defense to submit a report 
to the congressional defense committees, not later than 90 days 
after enactment of this Act, on its plans to ensure leadership 
in the next generation of 450mm semiconductor fabrication 
equipment manufacturing technology in the United States.

                OPERATIONAL TEST AND EVALUATION, DEFENSE

 
 
 
Fiscal year 2012 appropriation........................      $191,292,000
Fiscal year 2013 budget request.......................       185,268,000
Committee recommendation..............................       185,268,000
Change from budget request............................             - - -
 

    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of Defense for defense-wide activities. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     DEFENSE WORKING CAPITAL FUNDS

 
 
 
Fiscal year 2012 appropriation........................    $1,575,010,000
Fiscal year 2013 budget request.......................     1,516,184,000
Committee recommendation..............................     1,516,184,000
Change from budget request............................             - - -
 

    This appropriation finances, through the receipt of funded 
reimbursable orders, the operation of industrial, commercial 
and support-type activities such as depot maintenance, supply 
operations, distribution depots, transportation services, Navy 
research, finance and accounting services, information systems 
and telecommunication services. Working capital fund accounts 
use cost accounting and business management techniques to 
provide managers with information that can be used to monitor, 
control, and minimize costs of operations.

                     NATIONAL DEFENSE SEALIFT FUND

 
 
 
Fiscal year 2012 appropriation........................    $1,100,519,000
Fiscal year 2013 budget request.......................       608,136,000
Committee recommendation..............................       564,636,000
Change from budget request............................       -43,500,000
 

    This appropriation provides funds for the lease, operation, 
and supply of pre-positioning ships, operation of the Ready 
Reserve Force, and acquisition of ships for the Military 
Sealift Command, the Ready Reserve Force, and the Marine Corps.

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            (in thousands of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                                Committee         Change from
                                                           Budget request      recommended          request
----------------------------------------------------------------------------------------------------------------
STRATEGIC SEALIFT ACQUISITION..........................             77,386             39,386            -38,000
    Afloat forward staging base........................                               -38,000  .................
DoD MOBILIZATION ASSETS................................            184,616            184,616  .................
SEALIFT RESEARCH AND DEVELOPMENT.......................             42,811             37,311             -5,500
    Afloat forward staging base........................  .................             -5,500  .................
READY RESERVE FORCE OPERATIONS AND MAINTENANCE.........            303,323            303,323  .................
        Total NDSF.....................................            608,136            564,636            -43,500
----------------------------------------------------------------------------------------------------------------

                      AFLOAT FORWARD STAGING BASE

    The request includes $38,000,000 for the advance 
procurement of items for the Afloat Forward Staging Base 
(AFSB). The AFSB is envisioned by the Navy to act as a mobile 
at-sea platform that will provide flexible mission support and 
sustainment. This platform will fulfill a very longstanding (at 
least 20 years) but never fulfilled mission need for sea-based 
support for a variety of missions. In the past, this mission 
need has been filled by a variety of ad-hoc methods to include 
the use of available surface combatants or amphibious ships. 
The closest dedicated platform to fulfilling a similar mission 
need was the conversion of the Navy's amphibious assault ship, 
USS Inchon, to a mine countermeasure command and support ship 
in 1995. This was done at a time when the Navy was shifting the 
fleet from an organic mine warfare capability embedded on 
surface combatants to a more dedicated mine warfare capability 
of mine hunting ships and aircraft. Similarly, the Navy plans 
to fill this mission need in the very near term with the 
conversion of the USS Ponce in fiscal year 2012.
    Further, the Committee notes that the AFSB is planned for 
construction in the National Defense Sealift Fund, whose 
purpose in ship construction is for strategic sealift 
acquisition. The Committee is struggling with placing the 
mission of the AFSB into a strategic sealift area and directs 
the Secretary of the Navy to accomplish any AFSB tasks in the 
traditional Navy appropriation accounts.
    The Committee applauds the Navy for finally attempting to 
satisfy such a longstanding need, but it is confused as to the 
timing of satisfying this need in an era of decreasing budgets 
and when two combatants were pulled out of the fiscal year 2014 
shipbuilding program. The Committee believes this mission need 
can continue to be satisfied as it has been satisfied to date. 
The Committee directs the Navy to apply the fiscal year 2014 
funding currently projected for the construction of an AFSB 
toward fully funding an additional submarine to help achieve 
cost savings and industrial base stability in that program. 
Accordingly, the recommendation provides no funding for the 
AFSB.
                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         DEFENSE HEALTH PROGRAM

 
 
 
Fiscal year 2012 appropriation........................   $32,482,059,000
Fiscal year 2013 budget request.......................    32,528,718,000
Committee recommendation..............................    32,862,234,000
Change from the budget request........................       333,516,000
 

    This appropriation provides funds for the Defense Health 
Program of the Department of Defense. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2013:

            DEFENSE HEALTH PROGRAM REPROGRAMMING PROCEDURES

    The Committee remains concerned over the transfer of funds 
from Direct (or In-house) Care to pay for contractor-provided 
medical care. To limit such transfers and continue oversight 
within the Defense Health Program operation and maintenance 
account, the Committee includes bill language to cap the funds 
available for Private Sector Care under the TRICARE program 
subject to prior approval reprogramming procedures. The bill 
language and accompanying report language included by the 
Committee should not be interpreted by the Department of 
Defense as limiting the amount of funds that may be transferred 
to the Direct Care System from other budget activities within 
the Defense Health Program. In addition, the Committee 
continues to designate the funding for the Direct Care System 
as a special interest item. Any transfer of funds from the 
Direct (or In-house) Care budget activity into the Private 
Sector Care budget activity or any other budget activity will 
require the Department of Defense to follow prior approval 
reprogramming procedures.
    The Department also shall provide written notification to 
the House and Senate Appropriations Committees of cumulative 
transfers in excess of $15,000,000 out of the Private Sector 
Care budget activity. The Committee further directs the 
Assistant Secretary of Defense (Health Affairs) to provide 
quarterly reports to the House and Senate Appropriations 
Committees on budget execution data for all of the Defense 
Health Program accounts and to adequately reflect changes to 
the budget activities requested by the Services in future 
budget submissions.

                               CARRYOVER

    For fiscal year 2013, the Committee recommends one percent 
carryover authority for the operation and maintenance account 
of the Defense Health Program. The Committee directs the 
Assistant Secretary of Defense (Health Affairs) to submit a 
detailed spending plan for any fiscal year 2012 designated 
carryover funds to the congressional defense committees not 
fewer than 30 days prior to executing the carryover funds.

                         TRICARE FEE INCREASES

    The recommendation includes the assumed savings generated 
from proposed TRICARE fee changes. However, the Committee will 
continue to evaluate the proposed TRICARE changes, pending the 
passage of the fiscal year 2013 National Defense Authorization 
Act.

                 PEER-REVIEWED CANCER RESEARCH PROGRAM

    The Committee recommendation includes $15,000,000 for a 
Peer-Reviewed Cancer Research Program that would research 
cancers not addressed in the breast, prostate, ovarian, and 
lung cancer research programs currently executed by the 
Department of Defense, and specifically by the U.S. Army 
Medical Research and Materiel Command.
    The funds provided are directed to be used to conduct 
research in the following areas: melanoma and other skin 
cancers, pediatric brain tumors, genetic cancer research, 
pancreatic cancer, kidney cancer, blood cancer, colorectal 
cancer, mesothelioma, and listeria vaccine for infectious 
disease and cancer.
    The funds provided under the Peer-Reviewed Cancer Research 
Program shall be used only for the purposes listed above. The 
Assistant Secretary of Defense (Health Affairs) is directed to 
provide a report not later than 60 days after enactment of this 
Act to the congressional defense committees on the status of 
the Peer-Reviewed Cancer Research Program. For each research 
area, the report should include the funding amount awarded, the 
progress of the research, and the relevance of the research to 
servicemembers and their families.

               JOINT WARFIGHTER MEDICAL RESEARCH PROGRAM

    The Committee recommendation includes $50,000,000 for the 
continuation of the Joint Warfighter Medical Research Program.
    Funds shall be used to augment and accelerate high priority 
Department of Defense and Service medical requirements and to 
continue prior year initiatives that are close to achieving 
their objectives and yielding a benefit to military medicine. 
The funds shall not be used for new projects or for basic 
research. The funding shall be awarded at the Department's 
discretion following a review of medical research and 
development gaps as well as unfinanced medical requirements of 
the Services. Further, the Committee directs the Assistant 
Secretary of Defense (Health Affairs) to provide a report not 
later than 180 days after enactment of this Act to the 
congressional defense committees, which lists the projects that 
receive funding. The report should include the amount of 
funding provided to each project and a thorough description of 
each project's research.

           CONGRESSIONALLY DIRECTED MEDICAL RESEARCH PROGRAM

    The Committee continues to be a strong proponent of 
military medical research and includes adequate funds in its 
fiscal year 2013 recommendation for the Congressionally 
Directed Medical Research Program (CDMRP). However, the 
Committee has become concerned with some aspects of the way the 
CDMRP has been administered. In particular, the Committee is 
concerned that too many basic research projects are funded, 
rather than more advanced research and translational research 
projects, which will potentially yield medical breakthroughs 
more quickly. The Committee encourages the CDMRP to fund 
projects in mature medical research areas that are at more 
advanced stages of research and development. The Committee 
understands that for some diseases, research is less mature 
than for other diseases, and fully expects that most funding in 
immature research areas will be used for basic research. In 
addition, the Committee directs the Assistant Secretary of 
Defense (Health Affairs) to submit a report to the House and 
Senate Appropriations Committees not later than 120 days after 
enactment of this Act on how the Department of Defense's peer 
review process for the CDMRP can be strengthened.

          TRAUMATIC BRAIN INJURY/PSYCHOLOGICAL HEALTH FUNDING

    The Committee recommendation includes $125,000,000 above 
the fiscal year 2013 budget request for Traumatic Brain Injury 
(TBI) and Psychological Health (PH) funding.
    For the last several fiscal years, the Committee has 
provided ample resources above the requested amounts for TBI 
and PH research. However, a recent report from the Government 
Accountability Office (GAO) found that the Department of 
Defense could not adequately track expenditures and that 
obligation data reported to Congress has been unreliable. The 
GAO report states that ``the Office of the Assistant Secretary 
of Defense for Health Affairs has not developed quality control 
mechanisms to help ensure that data on PH and TBI activities 
are complete and accurate. Further, although the Department 
listed patient care among reported costs, it did not specify 
what those costs included, making it difficult for 
decisionmakers and Congress to fully understand the costs.'' 
The GAO recommended that ``the Department direct the Assistant 
Secretary of Defense (Health Affairs) to include expenditure 
data in annual reports to Congress, as required; establish 
quality control mechanisms on PH and TBI data; if patient care 
costs are provided in future annual reports, specify what they 
include; and revisit the role of the Defense Center of 
Excellence for PH and TBI (DCOE) as the Department's 
coordinating authority for issues concerning PH and TBI, as 
stated in DCOE's campaign plan, and determine whether DCOE or 
another organization should perform this function.''
    The Committee is dismayed at the GAO's recent findings and 
encourages the Assistant Secretary of Defense (Health Affairs) 
to follow the GAO's recommendations and to provide accurate 
expenditure and obligation data for PH and TBI funding to the 
congressional defense committees.
    Additionally, the Committee encourages the Assistant 
Secretary of Defense (Health Affairs) to collaborate with 
universities to develop the next generation of mental health 
professionals and to address psychological health diagnoses 
through innovative new methods and technologies.

             PEER-REVIEWED PROSTATE CANCER RESEARCH PROGRAM

    The Committee recommendation includes $80,000,000 for the 
Peer-Reviewed Prostate Cancer Research Program. The Committee 
is aware that there still are not reliable diagnostic tools for 
guiding early detection and treatment of prostate cancer. 
Therefore, the Committee encourages the Secretary of Defense to 
fund research for the advancement of prostate imaging 
technologies.

            JOINT TASK FORCE NATIONAL CAPITAL REGION MEDICAL

    The military medical treatment facilities provide our 
wounded warriors and their families world class health care. 
Nowhere is that more true than at the Walter Reed National 
Military Medical Center (WRNMMC). However, the Committee 
remains concerned that distinction is in jeopardy under the 
current governance structure for the National Capital Region 
(NCR).
    The Joint Task Force National Capital Region Medical (JTF 
CAPMED) was created for the sole purpose of ensuring a smooth 
and successful consolidation of major military medical 
hospitals in the NCR as directed by the Base Realignment and 
Closure Act of 2005. That purpose has been fulfilled. In 
September 2011, a Task Force established by the former Deputy 
Secretary of Defense to review the governance of the Military 
Health System (MHS) as a whole and the governance of the 
National Capital Region military health care in particular, 
recommended the disestablishment of JTF CAPMED. Further, the 
Task Force recommended the transition to an enhanced multi-
service market similar to other military health markets 
throughout the country. The Task Force determined that the 
National Capital Region does not need to have unique 
headquarters for its military health care. However, the final 
decision announced by the Secretary of Defense included the 
endurance of JTF CAPMED with some slight changes.
    The Committee believes the continued presence of JTF CAPMED 
only serves to confuse the command and control at WRNMMC and 
adds a layer of bureaucracy that does not exist in any other 
multi-service market area. It is also evident that friction 
exists at the command level between JTF CAPMED and the Service 
Surgeons General. While that friction has not yet jeopardized 
the world class medical treatment our troops receive, the 
Committee remains fearful that it will begin to permeate down 
the ranks and could threaten the day-to-day operations of the 
hospital.
    The military health care in the NCR is exemplary and should 
continue to be world class for our men and women in uniform and 
their families. The Committee understands the necessity of 
following the guidance recently issued by the Secretary of 
Defense but will continue to closely monitor the situation at 
JTF CAPMED.

                        PRESCRIPTION DRUG ABUSE

    The Committee remains concerned with pain management 
prescription medication dependency among servicemembers. It is 
imperative that the tracking of pain management prescription 
drugs is handled consistently at military medical treatment 
facilities, particularly in theater, as well as at retail and 
mail order pharmacies. It is also important that the proper 
steps are taken to prevent overmedication and that treatment 
options are available for those facing possible addiction. The 
Committee encourages the Secretary of Defense to make 
curtailing prescription drug abuse a priority.

                     OVERSEAS MEDICAL LABORATORIES

    The Committee recognizes the critical contribution that the 
Department of Defense research and development portfolio makes 
in protecting U.S. servicemembers from infectious diseases they 
may encounter on missions around the world. While focusing on 
troop readiness and protection, the Department's research has 
also contributed to the production of new global health 
technologies. The Committee encourages the Secretary of Defense 
to continue to robustly fund infectious disease research and 
the Army and Navy Overseas Medical Research Laboratories.

               INFORMATION TECHNOLOGY DISCHARGE SOLUTIONS

    The Committee is aware that many non-Department of Defense 
acute care facilities utilize automated referral and discharge 
processes known as Information Technology Discharge Solutions 
(ITDS). The ITDS provide seamless discharges from acute care 
facilities in a cost effective and expeditious manner. The 
Committee encourages the Assistant Secretary of Defense (Health 
Affairs) to determine whether ITDS could be utilized in 
Department of Defense facilities to improve coordinated care, 
hospital administration processes, transitions between levels 
of care, security of health information, length of stay, and 
cost savings for acute care.

 COOPERATION BETWEEN MILITARY MEDICAL FACILITIES, CIVILIAN HEALTHCARE 
                      FACILITIES, AND UNIVERSITIES

    The Committee recognizes the importance of cooperation 
between military medical facilities, universities, hospitals, 
and other civilian partners to integrate civilian and military 
domestic disaster medical and public health emergency 
preparedness and response activities and to provide trauma 
training to sustain the education of military medical 
providers.
    The Committee encourages the Assistant Secretary of Defense 
(Health Affairs) to continue the Department of Defense's 
support of such vital cooperative activities for the active, 
National Guard, and reserve components. The Committee also 
encourages the Assistant Secretary of Defense (Health Affairs) 
to expand these partnerships in order to fully capitalize on 
the expertise in non-Department of Defense medical centers and 
universities that can lead to increased medical readiness and 
resiliency in the military.

                          PROSTHETIC RESEARCH

    The Committee encourages the Assistant Secretary of Defense 
(Health Affairs) to provide resources for research to support 
advances in technology at the interface between the nervous 
system and intelligent prosthetics to provide sensation to 
amputees.

                   MULTI-DISCIPLINARY BRAIN RESEARCH

    The Committee encourages the Secretary of Defense to 
support multi-disciplinary research toward translational 
medicine that may provide better diagnostic tools and treatment 
outcomes for servicemembers who suffer from traumatic brain 
injury, post-traumatic stress disorder, and other neurotrauma. 
The Committee encourages the Secretary of Defense to provide 
the capabilities necessary for researchers, scientists, 
surgeons, physicians, healthcare professionals, and patients to 
effectively communicate their findings and outcomes. With 
proper support, translational research outcomes would be 
augmented through real-time access to information and its 
integration between researchers, physicians, hospitals, and 
patients. The Committee directs the Secretary of Defense to 
provide a report not later than 90 days after enactment of this 
Act on possible implementation of this program.

                   FEDERAL NEUROSCIENCE WORKING GROUP

  The Committee is aware that the Office of Science and 
Technology Policy, within the Executive Office of the 
President, is establishing an interagency working group under 
the auspices of the National Science and Technology Council 
(NSTC) to coordinate investments in neuroscience research 
across the Federal Government and leverage the potential for 
significant, transformative advances in our fundamental 
understanding of learning, brain development, and brain health 
and recovery. The goal of the working group is to help 
coordinate, focus, and enhance Federal efforts related to 
neuroscience, including efforts to develop future clinical 
treatments for traumatic and acquired brain injuries; increase 
our understanding of cognition and apply that knowledge to the 
improvement of education and learning; and improve our 
understanding of, and develop better therapies for, 
neurodegenerative diseases, childhood developmental disorders, 
and other neurological conditions. The Committee supports the 
activities of the NSTC Neuroscience Working Group and urges the 
Department of Defense to play an active role in it.

           CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE

 
 
 
Fiscal year 2012 appropriation........................    $1,554,422,000
Fiscal year 2013 budget request.......................     1,301,786,000
Committee recommendation..............................     1,301,786,000
Change from budget request............................             - - -
 

    This appropriation provides funds for the Chemical Agents 
and Munitions Destruction activities of the Department of 
Defense.
    The Committee recommends an appropriation of $1,301,786,000 
for the Chemical Agents and Munitions Destruction, Defense 
program.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [in thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                Committee         Change from
                                                           Budget request     recommendation        request
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE..............................            635,843            635,843                  -
PROCUREMENT............................................             18,592             18,592                  -
RESEARCH, DEVELOPMENT, TEST AND EVALUATION.............            647,351            647,351                  -
        TOTAL, CHEMICAL AGENTS AND MUNITIONS                     1,301,786          1,301,786                  -
         DESTRUCTION, DEFENSE..........................
----------------------------------------------------------------------------------------------------------------

         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

 
 
 
Fiscal year 2012 appropriation........................    $1,209,620,000
Fiscal year 2013 budget request.......................       999,363,000
Committee recommendation..............................     1,133,363,000
Change from the budget request........................       134,000,000
 

    This appropriation provides funds for military personnel; 
operation and maintenance; procurement; and research, 
development, test and evaluation for drug interdiction and 
counter-drug activities of the Department of Defense to include 
activities related to narcoterrorism.

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [in thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                Committee         Change from
                                                           Budget request     recommendation        request
----------------------------------------------------------------------------------------------------------------
DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES..........            999,363          1,133,363            134,000
    National Guard counter-drug program................                               130,000
    Young Marines--drug demand reduction...............                                 4,000
----------------------------------------------------------------------------------------------------------------

                NATIONAL GUARD COUNTER-DRUG STATE PLANS

    The Committee recommendation includes $130,000,000 above 
the request to supplement the National Guard Counter-Drug 
Program. The Committee is discouraged that, in a misguided 
effort to produce savings, the budget request reduced the 
National Guard Counter-Drug Program by nearly forty percent 
from the fiscal year 2012 budget request, and by nearly fifty 
percent from the fiscal year 2012 enacted level. The Committee 
recognizes the importance of the mission of the National Guard 
Counter-Drug Program and encourages the continued use of the 
highly effective and efficient Threat Based Resource Model. 
Further, the Committee directs the Secretary of Defense to 
robustly fund the National Guard Counter-Drug Program in 
subsequent budget years and to ensure that funding levels for 
the National Guard Counter-Drug Program do not fall below 
twenty percent of the total Drug Interdiction and Counter-Drug 
Activities appropriations funded under title VI.

                 TETHERED AEROSTAT RADAR SYSTEM PROGRAM

    The Committee is aware that internal interagency 
discussions are again underway related to the administration of 
the Tethered Aerostat Radar System (TARS) program. TARS 
surveillance data is used by U.S. Customs and Border Protection 
and by the Joint Interagency Task Force-South in support of 
border security and counter-drug operations. The aerostats, 
while still under the responsibility of the Air Force, have not 
been maintained for a number of reasons. However, the Committee 
believes that an alternative means of supporting operational 
needs for surveillance data has yet to be deployed. For that 
reason, the Committee is concerned about the reduced 
capability, particularly in the Caribbean, and encourages the 
Secretary of Defense to work with U.S. Customs and Border 
Protection and other interagency partners to develop a short 
term solution to address reduced capability as well as the 
right long term solution--whether that is transfer of assets, 
repair of current assets, replacement with other technology or 
capability, or other solutions.

             JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

 
 
 
Fiscal year 2012 appropriation........................             - - -
Fiscal year 2013 budget request.......................      $227,414,000
Committee recommendation..............................       217,414,000
Change from budget request............................       -10,000,000
 

    This fund provides for the staff and infrastructure of the 
Joint Improvised Explosive Device Defeat Organization.
    The Committee recommends an appropriation of $217,414,000.

                  JOINT URGENT OPERATIONAL NEEDS FUND

 
 
 
Fiscal year 2012 appropriation........................             - - -
Fiscal year 2013 budget request.......................       $99,477,000
Committee recommendation..............................             - - -
Change from budget request............................       -99,477,000
 

    This fund provides for the Joint Urgent Operational Needs 
Fund.
    The Committee recommends no funding for the Joint Urgent 
Operational Needs Fund.

                    OFFICE OF THE INSPECTOR GENERAL

 
 
 
Fiscal year 2012 appropriation........................      $346,919,000
Fiscal year 2013 budget request.......................       273,821,000
Committee recommendation..............................       350,321,000
Change from budget request............................        76,500,000
 

    The Committee recommends an appropriation of $350,321,000 
for the Office of the Inspector General.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2013:

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [in thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                Committee         Change from
                                                           Budget request     recommendation        request
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE..............................            272,821            347,621             74,800
    Program increase...................................                                74,800
PROCUREMENT............................................              1,000              2,700              1,700
    Program increase...................................                                 1,700
        TOTAL, OFFICE OF THE INSPECTOR GENERAL.........            273,821            350,321             76,500
----------------------------------------------------------------------------------------------------------------

                               TITLE VII

                            RELATED AGENCIES

              NATIONAL AND MILITARY INTELLIGENCE PROGRAMS

    The National Intelligence Program and the Military 
Intelligence Program budgets funded in the Department of 
Defense Appropriations Act consist primarily of resources for 
the Director of National Intelligence including the 
Intelligence Community Management Staff, the Central 
Intelligence Agency (CIA), the Defense Intelligence Agency, the 
National Reconnaissance Office, the National Security Agency, 
the National Geospatial-Intelligence Agency, the intelligence 
services of the Departments of the Army, Navy, Air Force, and 
Marine Corps, and the CIA Retirement and Disability fund.

                            CLASSIFIED ANNEX

    The Committee's budget reviews are published in a separate 
detailed and comprehensive classified annex. The intelligence 
community, Department of Defense, and other organizations are 
expected to fully comply with the recommendations and 
directions in the classified annex accompanying the Department 
of Defense Appropriations Act, 2013.

   CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND

 
 
 
Fiscal year 2012 appropriation........................      $513,700,000
Fiscal year 2013 budget request.......................       514,000,000
Committee recommendation..............................       514,000,000
Change from budget request............................             - - -
 

    This appropriation provides payments of benefits to 
qualified beneficiaries in accordance with the Central 
Intelligence Agency Retirement Act of 1964 for Certain 
Employees (P.L. 88-643), as amended by Public Law 94-522. This 
statute authorized the establishment of the CIA Retirement and 
Disability System for certain employees and authorized the 
establishment and maintenance of a fund from which benefits 
would be paid to those beneficiaries.
    The Committee recommends the budget request of $514,000,000 
for the Central Intelligence Agency Retirement and Disability 
System fund. This is a mandatory account.

               INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

 
 
 
Fiscal year 2012 appropriation........................      $547,891,000
Fiscal year 2013 budget request.......................       540,252,000
Committee recommendation..............................       511,476,000
Change from budget request............................       -28,776,000
 

    The Committee recommends an appropriation of $511,476,000 
for the Intelligence Community Management Account.
                               TITLE VIII

                           GENERAL PROVISIONS

    The accompanying bill includes 120 general provisions. Most 
of these provisions were included in the Department of Defense 
Appropriations Act for fiscal year 2012 and many have been 
included in the Defense Appropriations Acts for a number of 
years. A description of each provision follows.
    Section 8001 provides that no funds made available in this 
Act may be used for publicity or propaganda purposes not 
authorized by Congress.
    Section 8002 provides for conditions and limitations on the 
payment of compensation to, or employment of, foreign 
nationals.
    Section 8003 provides that no funds made available in this 
Act may be obligated beyond the end of the fiscal year unless 
expressly provided for a greater period of availability 
elsewhere in the Act.
    Section 8004 provides a 20 percent limitation on the 
obligation of funds provided in this Act during the last two 
months of the fiscal year.
    Section 8005 has been amended and provides for the general 
transfer authority of working capital funds to other military 
functions.
    Section 8006 has been amended and provides that the tables 
titled ``Explanation of Project Level Adjustments'' in the 
committee report and classified annex shall be carried out in 
the manner provided by the tables to the same extent as if the 
tables were included in the text of this Act.
    Section 8007 has been amended and provides for the 
establishment of a baseline for application of reprogramming 
and transfer authorities for the current fiscal year.
    Section 8008 provides for limitations on the use of 
transfer authority of working capital fund cash balances.
    Section 8009 provides that none of the funds appropriated 
in this Act may be used to initiate a special access program 
without prior notification to the congressional defense 
committees.
    Section 8010 has been amended and provides limitations and 
conditions on the use of funds made available in this Act to 
initiate multi-year contracts.
    Section 8011 provides for the use and obligation of funds 
for humanitarian and civic assistance costs under chapter 20 of 
title 10, United States Code.
    Section 8012 has been amended and provides that civilian 
personnel of the Department may not be managed on the basis of 
end strength or be subject to end strength limitations.
    Section 8013 prohibits funding from being used to influence 
congressional action on any matters pending before the 
Congress.
    Section 8014 prohibits compensation from being paid to any 
member of the Army who is participating as a full-time student 
and who receives benefits from the Education Benefits Fund when 
time spent as a full-time student is counted toward that 
member's service commitment.
    Section 8015 provides for the transfer of funds 
appropriated in title III of this Act for the Department of 
Defense Pilot Mentor-Protege Program.
    Section 8016 provides for the Department of Defense to 
purchase anchor and mooring chains manufactured only in the 
United States.
    Section 8017 has been amended and makes permanent the 
prohibition of funds made available to the Department of 
Defense from being used to demilitarize or dispose of certain 
surplus firearms and small arms ammunition or ammunition 
components.
    Section 8018 provides a limitation on funds being used for 
the relocation of any Department of Defense entity into or 
within the National Capital Region.
    Section 8019 provides for incentive payments authorized by 
section 504 of the Indian Financing Act of 1974 (25 U.S.C. 
1544).
    Section 8020 provides that no funding for the Defense Media 
Activity may be used for national or international political or 
psychological activities.
    Section 8021 provides for the obligation of funds for 
purposes specified in section 2350j(c) of title 10, United 
States Code, in anticipation of receipt of contributions from 
the Government of Kuwait.
    Section 8022 has been amended and provides funding for the 
Civil Air Patrol Corporation.
    Section 8023 has been amended and prohibits funding from 
being used to establish new Department of Defense Federally 
Funded Research and Development Centers (FFRDC), with certain 
limitations.
    Section 8024 provides for the Department of Defense to 
procure carbon, alloy, or armor steel plate melted and rolled 
only in the United States and Canada.
    Section 8025 defines the congressional defense committees 
as being the Armed Services Committees of the House and Senate 
and the Subcommittees on Defense of the Committees on 
Appropriations of the House and Senate.
    Section 8026 provides for competitions between private 
firms and Department of Defense Depot Maintenance Activities 
for modification, depot maintenance, and repair of aircraft, 
vehicles, and vessels as well as the production of components 
and other Defense-related articles.
    Section 8027 has been amended and provides for revocation 
of blanket waivers of the Buy American Act upon a finding that 
a country has violated a reciprocal trade agreement by 
discriminating against products produced in the United States 
that are covered by the agreement.
    Section 8028 provides for the availability of funds 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account for purposes specified in 
section 2921(c)(2) of the 1991 National Defense Authorization 
Act.
    Section 8029 provides for the conveyance, without 
consideration, of relocatable housing units that are excess to 
the needs of the Air Force located at Grand Forks Air Force 
Base, Malmstrom Air Force Base, Mountain Home Air Force Base, 
Ellsworth Air Force Base, and Minot Air Force Base to Indian 
Tribes located in the states of Nevada, Idaho, North Dakota, 
South Dakota, Montana, Oregon, Minnesota, and Washington.
    Section 8030 provides authority to use operation and 
maintenance appropriations to purchase items having an 
investment item unit cost of not more than $250,000.
    Section 8031 has been amended and prohibits the use of 
Working Capital Funds to purchase specified investment items.
    Section 8032 has been amended and provides that none of the 
funds appropriated for the Central Intelligence Agency shall 
remain available for obligation beyond the current fiscal year 
except for funds appropriated for the Reserve for 
Contingencies, the Working Capital Fund, or other programs as 
specified.
    Section 8033 provides that funds available for the Defense 
Intelligence Agency may be used for the design, development, 
and deployment of General Defense Intelligence Program 
intelligence communications and intelligence information 
systems.
    Section 8034 provides for the availability of funds for the 
mitigation of environmental impacts on Indian lands resulting 
from Department of Defense activities.
    Section 8035 requires the Department of Defense to comply 
with the Buy American Act (chapter 83 of title 41, United 
States Code).
    Section 8036 provides conditions under which contracts for 
studies, analyses, or consulting services may be entered into 
without competition on the basis of an unsolicited proposal.
    Section 8037 places certain limitations on the use of funds 
made available in this Act to establish Field Operating 
Agencies.
    Section 8038 provides grant authorities for the Department 
of Defense acting through the Office of Economic Adjustment.
    Section 8039 prohibits funds made available in this Act 
from being used to convert to contractor performance an 
activity or function performed by civilian employees, unless 
certain conditions are met.

                             (RESCISSIONS)

    Section 8040 provides for the rescission of $1,019,316,000 
from the following programs:

 
 
 
2011 Appropriations:
    Procurement of Ammunition, Army:
        40mm ammunition...............................       $14,862,000
    Aircraft Procurement, Navy:
        P-8A..........................................        30,100,000
    Weapons Procurement, Navy:
        Tomahawk contract savings.....................        22,000,000
    Other Procurement, Navy:
        Minesweeping system replacement...............        12,432,000
    Aircraft Procurement, Air Force:
        Light mobility aircraft.......................        65,000,000
    Other Procurement, Air Force:
        GCSS-AF FOS (ECSS)............................         9,500,000
2012 Appropriations:
    Other Procurement, Army:
        Warfighter Information Network--Tactical......        80,000,000
    Aircraft Procurement, Navy:
        F-18 series OSIP 14-03 ILS....................        10,000,000
        H-53 series IMDS installation kits............         4,400,000
    Weapons Procurement, Navy:
        Tomahawk contract savings.....................        18,000,000
        AMRAAM contract savings.......................         3,572,000
        ASW targets...................................        10,000,000
    Aircraft Procurement, Air Force:
        Common Vertical Lift Support Platform.........        52,800,000
        Light Attack Armed Reconnaissance.............       115,000,000
        RQ-4 advance procurement......................        71,500,000
        C-17 modifications............................        37,750,000
    Missile Procurement, Air Force:
        AMRAAM contract savings.......................        37,000,000
        Classified programs...........................         7,000,000
    Other Procurement, Air Force:
        GCSS-AF FOS (ECSS)............................        55,800,000
    Research, Development, Test and Evaluation, Army:
        Joint Air-to-Ground Missile...................        63,000,000
    Research, Development, Test and Evaluation, Navy:
        Medium range maritime UAS.....................        15,000,000
        Joint Air-to-Ground Missile...................       105,000,000
    Research, Development, Test and Evaluation, Air
     Force:
        JSpoC modernization system....................        40,000,000
        Classified programs...........................        90,000,000
        EW development (MALD-J II)....................         4,600,000
        Common Vertical Lift Support Platform.........         5,300,000
        Light Attack Armed Reconnaissance.............        13,700,000
        AWACS.........................................        10,000,000
        B-2 squadrons.................................        16,000,000
 

    Section 8041 prohibits funds made available in this Act 
from being used to reduce authorized positions for military 
technicians (dual status) of the Army National Guard, Air 
National Guard, Army Reserve, and Air Force Reserve unless such 
reductions are a direct result of a reduction in military force 
structure.
    Section 8042 prohibits funding from being obligated or 
expended for assistance to the Democratic People's Republic of 
Korea unless appropriated for that purpose.
    Section 8043 provides for reimbursement to the National 
Guard and reserve when members of the National Guard and 
reserve provide intelligence or counterintelligence support to 
the Combatant Commands, Defense Agencies, and Joint 
Intelligence Activities.
    Section 8044 prohibits funds from being used to reduce 
civilian medical and medical support personnel assigned to 
military treatment facilities below the September 30, 2003 
level unless the Service Surgeons General certify to the 
congressional defense committees that it is a responsible 
stewardship of resources to do so.
    Section 8045 prohibits the transfer of Defense and Central 
Intelligence Agencies' drug interdiction and counter-drug 
activity funds to other agencies except as specifically 
provided in an appropriations law.
    Section 8046 prohibits funding from being used for the 
procurement of ball and roller bearings other than those 
produced by a domestic source and of domestic origin.
    Section 8047 prohibits funding from being used to purchase 
supercomputers which are not manufactured in the United States.
    Section 8048 prohibits funding made available in this or 
any other Act from being used to pay the salary of anyone who 
approves or implements a transfer of administrative 
responsibilities or budgetary resources of any program, 
project, or activity financed by this Act to the jurisdiction 
of another Federal agency not financed by this Act without 
express authorization of the Congress.
    Section 8049 provides for prior Congressional notification 
of article transfers to international peacekeeping 
organizations.
    Section 8050 prohibits funding from being used for 
contractor bonuses being paid due to business restructuring.
    Section 8051 provides for the transfer of funds to be used 
to support personnel supporting approved non-traditional 
defense activities.
    Section 8052 provides for the Department of Defense to 
dispose of negative unliquidated or unexpended balances for 
expired or closed accounts.
    Section 8053 provides conditions for the use of equipment 
of the National Guard Distance Learning Project on a space-
available, reimbursable basis.
    Section 8054 provides for the availability of funds to 
implement cost-effective agreements for required heating 
facility modernization in the Kaiserslautern Military 
Community, Germany.
    Section 8055 provides for the limitation on the use of 
funds appropriated in title IV to procure end-items for 
delivery to military forces for operational training, 
operational use, or inventory requirements.
    Section 8056 provides for a waiver of the ``Buy American'' 
provisions for certain cooperative programs.
    Section 8057 prohibits funding from being used to support 
the training of members of foreign security forces who have 
engaged in gross violations of human rights.
    Section 8058 prohibits funding from being used for repairs 
or maintenance to military family housing units.
    Section 8059 provides obligation authority for new starts 
for advanced concept technology demonstration projects only 
after notification to the congressional defense committees.
    Section 8060 provides that the Secretary of Defense shall 
provide a classified quarterly report on certain matters as 
directed in the classified annex accompanying this Act.
    Section 8061 prohibits the use of funds made available to 
the Department of Defense to provide support to an agency that 
is more than 90 days in arrears in making payments to the 
Department of Defense for goods or services provided on a 
reimbursable basis.
    Section 8062 provides for the use of National Guard 
personnel to support ground-based elements of the National 
Ballistic Missile Defense System.
    Section 8063 prohibits the use of funds made available in 
this Act to transfer to any nongovernmental entity ammunition 
held by the Department of Defense that has a center-fire 
cartridge and is designated as ``armor piercing'' except for 
demilitarization purposes.
    Section 8064 provides for a waiver by the Chief, National 
Guard Bureau or his designee for all or part of consideration 
in cases of personal property leases of less than one year.
    Section 8065 prohibits funding from being used to purchase 
alcoholic beverages.
    Section 8066 has been amended and provides for the transfer 
of funds made available in this Act under ``Operation and 
Maintenance, Army'' to other activities of the Federal 
Government for classified purposes.
    Section 8067 has been amended and provides for the forced 
matching of disbursements and obligations made by the 
Department of Defense in the current fiscal year.
    Section 8068 provides grant authority for the construction 
and furnishing of additional Fisher Houses to meet the needs of 
military family members when confronted with the illness or 
hospitalization of an eligible military beneficiary.
    Section 8069 has been amended and provides funding and 
transfer authority for the Israeli Cooperative Programs.
    Section 8070 has been amended and prohibits funding from 
being obligated to modify command and control relationships to 
give Fleet Forces Command operational and administrative 
control of U.S. Navy forces assigned to the Pacific Fleet.
    Section 8071 has been amended and provides for the funding 
of prior year shipbuilding cost increases.
    Section 8072 has been amended and provides that funds made 
available in this Act for intelligence activities are deemed to 
be specifically authorized by Congress for purposes of section 
504 of the National Security Act of 1947 until the enactment of 
the Intelligence Authorization Act for the current fiscal year.
    Section 8073 prohibits funding from being used to initiate 
a new start program without prior written notification.
    Section 8074 provides that the budget of the President for 
the subsequent fiscal year shall include separate budget 
justification documents for costs of the United States Armed 
Forces' participation in contingency operations for the 
Military Personnel, Operation and Maintenance, and Procurement 
accounts.
    Section 8075 prohibits funding from being used for the 
research, development, test, evaluation, procurement, or 
deployment of nuclear armed interceptors of a missile defense 
system.
    Section 8076 provides the Secretary of Defense with the 
authority to make grants in the amounts specified.
    Section 8077 prohibits funding from being used to reduce or 
disestablish the operation of the 53rd Weather Reconnaissance 
Squadron of the Air Force Reserve.
    Section 8078 prohibits funding from being used for the 
integration of foreign intelligence information unless the 
information has been lawfully collected and processed during 
conduct of authorized foreign intelligence activities.
    Section 8079 provides that at the time members of reserve 
components of the Armed Forces are called or ordered to active 
duty, each member shall be notified in writing of the expected 
period during which the member will be mobilized.
    Section 8080 provides that the Secretary of Defense may 
transfer funds from any available Department of the Navy 
appropriation under certain conditions to any available Navy 
ship construction appropriation to liquidate costs caused by 
rate adjustments or other economic factors.
    Section 8081 provides for the use of current and expired 
Shipbuilding and Conversion, Navy subdivisions to reimburse the 
Judgment Fund.
    Section 8082 prohibits funding from being used to transfer 
program authority relating to current tactical unmanned aerial 
vehicles from the Army and requires the Army to retain 
responsibility for and operational control of the MQ-1C Sky 
Warrior Unmanned Aerial Vehicle.
    Section 8083 provides funding under certain conditions for 
the Asia Pacific Regional Initiative Program for the purpose of 
enabling the Pacific Command to execute certain Theater 
Security Cooperation activities.
    Section 8084 has been amended and prohibits funding 
provided for the Director of National Intelligence beyond the 
current fiscal year, except for funds appropriated for research 
and technology, which shall remain available for the current 
and the following fiscal years.
    Section 8085 provides for the adjustment of obligations 
within the Shipbuilding and Conversion, Navy appropriation.
    Section 8086 requires the Director of National Intelligence 
to include certain budget exhibits as described in the 
Department of Defense Financial Management Regulation with the 
congressional budget justification books.
    Section 8087 is a new provision that reduces the amounts 
provided to Operation and Maintenance, Army and Other 
Procurement, Army due to an excessive level of carryover at 
Army depots.
    Section 8088 has been amended and provides for the 
establishment of a baseline for application of reprogramming 
and transfer authorities for the Office of the Director of 
National Intelligence for the current fiscal year.
    Section 8089 provides for limitations on funding provided 
for the National Intelligence Program to be available for 
obligation or expenditure through a reprogramming or transfer 
of funds in accordance with section 102A(d) of the National 
Security Act of 1947 (50 U.S.C. 403-1(d)).
    Section 8090 directs the Director of National Intelligence 
to submit a future-years intelligence program reflecting 
estimated expenditures and proposed appropriations.
    Section 8091 defines the congressional intelligence 
committees as being the Permanent Select Committee on 
Intelligence of the House, the Select Committee on Intelligence 
of the Senate, and the Subcommittees on Defense of the 
Committees on Appropriations of the House and Senate.
    Section 8092 has been amended and directs the Department of 
Defense to continue to report incremental contingency 
operations costs for Operation New Dawn, Operation Enduring 
Freedom, or any other named operations in the U.S. Central 
Command area of responsibility on a monthly basis in the Cost 
of War Execution Report as required by Department of Defense 
Financial Management Regulation.
    Section 8093 provides the authority to transfer funding 
from operations and maintenance accounts for the Army, Navy, 
and Air Force to the Fisher Houses and Suites.
    Section 8094 provides that operation and maintenance funds 
may be available for the purpose of making remittances to the 
Defense Acquisition Workforce Development Fund.
    Section 8095 provides that any agency receiving funds made 
available in this Act shall post on a public website any report 
required to be submitted by Congress with certain exceptions.
    Section 8096 requires contractors receiving any federal 
contract in excess of $1,000,000 to require, as a condition of 
employment, that employees or independent contractors agree to 
resolve through arbitration any claim or tort related to, or 
arising out of, sexual assault or harassment, including assault 
and battery, intentional infliction of emotional distress, 
false imprisonment, or negligent hiring, supervision, or 
retention and to certify that each covered subcontractor do the 
same.
    Section 8097 prohibits funding to the Association of 
Community Organizations for Reform Now (ACORN) or its 
subsidiaries.
    Section 8098 has been amended and provides funds for 
transfer to the Joint Department of Defense--Department of 
Veterans Affairs Medical Facility Demonstration Fund.
    Section 8099 has been amended and prevents the Office of 
the Director of National Intelligence from employing more 
Senior Executive employees than are specified in the classified 
annex.
    Section 8100 prohibits funding from being used to pay a 
retired general or flag officer to serve as a senior mentor 
advising the Department of Defense unless such retired officer 
files a Standard Form 278 or successor form.
    Section 8101 provides for the purchase of heavy and light 
armored vehicles for the physical security of personnel or for 
force protection purposes up to a limit of $250,000 per 
vehicle.
    Section 8102 has been amended and provides grants through 
the Office of Economic Adjustment to assist the civilian 
population of Guam in response to the military buildup of Guam.
    Section 8103 prohibits the Secretary of Defense from taking 
beneficial occupancy of more than 2,000 parking spaces to be 
provided by the BRAC 133 project unless certain conditions are 
met.
    Section 8104 has been amended and requires monthly 
reporting of the civilian personnel end strength by 
appropriation account to the congressional defense committees.
    Section 8105 prohibits funding to separate the National 
Intelligence Program budget from the Department of Defense 
budget.
    Section 8106 has been amended and provides the Director of 
National Intelligence with general transfer authority with 
certain limitations.
    Section 8107 has been amended and provides authority to 
make grants to construct, renovate, repair, or expand 
elementary and secondary public schools on military 
installations to address capacity or facility condition 
deficiencies.
    Section 8108 prohibits funding to transfer or release any 
individual detained at Guantanamo Bay, Cuba into the United 
States, its territories, or possessions. This language is 
identical to language enacted in Public Law 112-74.
    Section 8109 prohibits funding to transfer any individual 
detained at Guantanamo Bay, Cuba to a country of origin or 
other foreign country or entity unless the Secretary makes 
certain certifications. This language is identical to language 
enacted in Public Law 112-74.
    Section 8110 prohibits funding to modify any United States 
facility (other than the facility at Guantanamo Bay, Cuba) to 
house any individual detained at Guantanamo Bay, Cuba. This 
language is identical to language enacted in Public Law 112-74.
    Section 8111 prohibits funding from being used to enter 
into agreements with corporations with unpaid tax liabilities.
    Section 8112 prohibits funding from being used to enter 
into agreements with a corporation that was convicted of a 
federal criminal violation in the past 24 months.
    Section 8113 prohibits funding from being used to violate 
the Trafficking Victims Protection Act of 2000.
    Section 8114 prohibits funding from being used to violate 
the Child Soldiers Prevention Act of 2008.
    Section 8115 prohibits funding from being used to violate 
the War Powers Resolution Act.
    Section 8116 is a new provision that prohibits funding from 
being used to retire, divest, realign, or transfer Air Force 
aircraft or to disestablish or convert units associated with 
such aircraft.
    Section 8117 is a new provision that requires the Secretary 
of the Air Force to obligate and expend funds previously 
appropriated for the procurement of RQ-4B Global Hawk and C-27J 
Spartan aircraft.
    Section 8118 is a new provision that prohibits funding from 
being used to retire C-23 Sherpa aircraft.
    Section 8119 is a new provision that eliminates funding 
requested for the civilian pay raise.
    Section 8120 is a new provision that prohibits funding from 
being used to transfer a veterans memorial object to a foreign 
country or entity controlled by a foreign government unless 
such transfer is specifically authorized by law.
    Section 8121 is a new provision that restricts funding from 
being used to sponsor certain sporting events.
                                TITLE IX

                    OVERSEAS CONTINGENCY OPERATIONS

                        COMMITTEE RECOMMENDATION

    In title IX the Committee recommends total new 
appropriations of $88,479,906,000. A detailed review of the 
Committee's recommendations for programs funded in this title 
is provided in the following pages.

                         REPORTING REQUIREMENTS

    The Committee directs the Secretary of Defense to continue 
to report incremental contingency operations costs for 
Operation Enduring Freedom on the monthly basis in the Cost of 
War Execution report as required by Department of Defense 
Financial Management Regulation, Chapter 23, Volume 12. The 
committee further directs the Secretary of Defense to continue 
providing Cost of War reports to the congressional defense 
committees that include the following information by 
appropriation account: funding appropriated, funding allocated, 
monthly obligations, monthly disbursements, cumulative fiscal 
year obligations, and cumulative fiscal year disbursements.
    Finally, given the Air Force's recent confusion regarding 
named operations versus exercises, the Committee wants to make 
clear that overseas contingency operations funding should only 
be used to finance the incremental cost of named military 
operations in the Central Command area of responsibility.
    The Committee expects that in order to meet unanticipated 
requirements, funds may need to be transferred within these 
appropriations accounts for purposes other than those specified 
in this report. The Committee directs the Secretary of Defense 
to follow normal prior approval reprogramming procedures should 
it be necessary to transfer funding between different 
appropriations accounts in this title.

              AFGHAN LOCAL POLICE AND HUMAN RIGHTS ABUSES

    The Committee is deeply concerned by reports from human 
rights and humanitarian organizations alleging human rights 
abuses committed by some members of Afghan Local Police (ALP) 
in Afghanistan. The Committee remains troubled by public 
reports highlighting the Government of Afghanistan's lack of 
capacity to effectively oversee the ALP program and the 
potential consequences thereof. The Committee urges the 
Department to take additional steps to ensure that U.S. funds 
and personnel are employed in compliance with Section 8057 of 
this Act. Not later than 90 days after enactment of this Act, 
the Secretary of Defense shall provide a report to the 
congressional defense committees outlining in detail the 
following: how the U.S. is assisting the Afghan government to 
implement the ALP program, the Afghan government's capacity and 
efforts to exercise effective oversight and investigate 
allegations of abuse by ALP units or individuals, and if 
necessary, what actions are being taken to hold those persons 
responsible accountable for these actions. The report should 
describe the U.S. and Afghan government's responses to 
allegations, efforts taken to investigate the allegations and 
bring those accused to justice, U.S. funds expended or 
anticipated to be expended for the ALP, as well as the 
Department's strategy to assist the Afghan government in the 
implementation of the program.

                           MILITARY PERSONNEL

    The Committee recommends an additional appropriation of 
$13,786,221,000 for Military Personnel. The Committee's 
recommendations for each military personnel account are shown 
below:

                       OPERATION AND MAINTENANCE

    The Committee recommends an additional appropriation of 
$63,478,841,000 for Operation and Maintenance. The Committee's 
recommendations for each operation and maintenance account are 
shown below:

                 COMMANDER'S EMERGENCY RESPONSE PROGRAM

    The bill provides $250,000,000 of the $400,000,000 
requested for the Commander's Emergency Response Program (CERP) 
for Afghanistan. Funds to deliver CERP projects in Afghanistan 
in fiscal year 2013 were not fully justified to the Committee. 
The bill also requires the Secretary of Defense to notify the 
congressional defense committees 15 days prior to making CERP 
funds available for any project with an expected total cost in 
excess of $5,000,000.

                        COALITION SUPPORT FUNDS

    The recommendation provides $1,750,000,000 requested for 
Coalition Support Funds for reimbursements to coalition 
countries, primarily Pakistan and Jordan, for logistical, 
military, and other expenses incurred in supporting U.S. 
military operations. Closures placed on ground lines of 
communication through Pakistan into Afghanistan following the 
events of November 26, 2011 have resulted in limited 
reimbursements. Because of the limited need for reimbursement, 
the Committee imposes restrictions on the use of $1,300,000,000 
of the $1,750,000,000 allocated specifically for Pakistan. 
Additionally, the bill requires a certification by the 
Secretaries of State and Defense regarding Pakistan's 
cooperation with the United States on various matters.

                        C-17 ENGINE MAINTENANCE

    The Air Force requests a direct appropriation of 
$230,400,000 for C-17 engine maintenance in the Air Force 
Working Capital Fund but provides no supporting justification 
for this funding requirement. Further, the Air Force could not 
provide a coherent explanation as to why the funding was 
requested in the Working Capital Fund rather than in the 
operation and maintenance account. The Committee believes this 
funding requirement is an indication that the Air Force must do 
more to control the rising costs of maintaining the C-17 
engine. The Air Force recently proposed a C-17 engine 
sustainment strategy to achieve savings through induced 
competition for engine overhaul and supply chain management 
services. However, the Committee is already concerned that this 
strategy will take longer to introduce competition than is 
necessary. As of December 2011, the Air Force had the C-17 
engine overhaul and component repair manuals and the data 
rights to approve non-original equipment manufacturer parts and 
therefore had the ability to competitively contract for engine 
components, subsystems, and for the management of the supply 
chain. The Committee believes that by expediting the 
establishment of an effective Source Approval Request process, 
savings can be achieved through open competition as soon as 
fiscal year 2013. Accordingly, the Committee reduces the 
request by $30,400,000 and expects the Secretary of the Air 
Force to take the necessary actions to accelerate competition 
in support of achieving these savings.

                              PROCUREMENT

    The Committee recommends an additional appropriation of 
$7,906,039,000 for Procurement. The Committee's recommendations 
for each procurement account are shown below:

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The Committee recommends an additional appropriation of 
$235,516,000 for Research, Development, Test and Evaluation. 
The Committee's recommendations for each research, development, 
test and evaluation account are shown below:

                     REVOLVING AND MANAGEMENT FUNDS

                     DEFENSE WORKING CAPITAL FUNDS

    The Committee recommends an additional appropriation of 
$293,600,000 for the Defense Working Capital Fund accounts.
    The Committee's recommendations are shown below:

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                        [in thousands of dollars]
------------------------------------------------------------------------
                                    Budget      Committee    Change from
                                    request  recommendation     request
------------------------------------------------------------------------
Army WCF--Army Prepositioned         42,600          42,600  ...........
 stocks (OCO)....................
                                  --------------------------------------
Army Working Capital Fund OCO        42,600          42,600  ...........
 Subtotal........................
 
AF WCF--Transportation for Fallen    10,000          10,000  ...........
 Heroes..........................
AF WCF--CLS Contract for C-17       230,400               0     -230,400
 Engine Maintenance..............
    Realigned to Operation and     ........        -230,400  ...........
     Maintenance, Air Force......
                                  --------------------------------------
Air Force Working Capital Fund      240,400          10,000     -230,400
 OCO Subtotal....................
 
DW WCF--Supply Chain Management..    89,964          60,600      -29,364
    Excess Growth in OEF           ........         -18,364  ...........
     Disposition Operations......
    Excess Growth in OEF           ........          -2,000  ...........
     Consolidated Shipping Costs.
    Excess Growth in DLA           ........          -9,000  ...........
     Distributions in Kuwait for
     OEF.........................
DW WCF--Energy Management........   130,400         180,400       50,000
    Restore Unexplained Reduction
     to Fuel
    Transportation and Terminal    ........          50,000  ...........
     Operations..................
                                  --------------------------------------
Defense Working Capital Fund OCO    220,364         241,000       20,636
 Subtotal........................
                                  ======================================
Working Capital Fund Total.......   503,364         293,600     -209,764
------------------------------------------------------------------------

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         DEFENSE HEALTH PROGRAM

    The Committee recommends an additional appropriation of 
$993,898,000 for the Defense Health Program. The Committee's 
recommendations for operation and maintenance, procurement and 
research, development, test and evaluation are shown below:

         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

    The Committee recommends an additional appropriation of 
$469,025,000 for Drug Interdiction and Counter-Drug Activities. 
The Committee's recommendations for the counter-drug account 
are shown below:

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                    Budget      Committee    Change from
                                    request    recommended     request
------------------------------------------------------------------------
DRUG INTERDICTION AND COUNTER-      469,025         469,025  ...........
 DRUG ACTIVITIES.................
------------------------------------------------------------------------

             JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

    The Committee recommends an additional appropriation of 
$1,614,900,000 for the Joint Improvised Explosive Device Defeat 
Fund. The Committee's recommendations for the Joint Improvised 
Explosive Device Defeat Fund are shown below:

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                Committee         Change from
                          P-1                              Budget request      recommended          request
----------------------------------------------------------------------------------------------------------------
1 ATTACK THE NETWORK...................................            950,500            925,000            -25,500
    Program adjustment.................................                               -25,500
2 DEFEAT THE DEVICE....................................            400,000            375,000            -25,000
    Program adjustment.................................                               -25,000
3 TRAIN THE FORCE......................................            149,500            144,500             -5,000
    Program adjustment.................................                                -5,000
4 STAFF AND INFRASTRUCTURE.............................            175,400            170,400             -5,000
    Program adjustment.................................                                -5,000
        TOTAL, JOINT IED DEFEAT FUND...................          1,675,400          1,614,900            -60,500
----------------------------------------------------------------------------------------------------------------

                  JOINT URGENT OPERATIONAL NEEDS FUND

    The Committee recommends no funding for the Joint Urgent 
Operational Needs Fund.

                    OFFICE OF THE INSPECTOR GENERAL

    The Committee recommends an additional appropriation of 
$10,766,000 for the Office of the Inspector General.

                           GENERAL PROVISIONS

    Title IX contains several general provisions, many of which 
extend or modify war-related authorities included in previous 
Acts. A brief description of the recommended provisions 
follows:
    Section 9001 has been amended and provides that funds made 
available in this title are in addition to funds appropriated 
or otherwise made available for the Department of Defense for 
the current fiscal year.
    Section 9002 has been amended and provides for general 
transfer authority within title IX.
    Section 9003 provides that supervision and administration 
costs associated with a construction project funded with 
appropriations available for operation and maintenance, 
Afghanistan Infrastructure Fund or the Afghanistan Security 
Forces Fund may be obligated at the time a construction 
contract is awarded.
    Section 9004 provides for the procurement of passenger 
motor vehicles and heavy and light armored vehicles for use by 
military and civilian employees of the Department of Defense in 
the U.S. Central Command area.
    Section 9005 has been amended and provides funding for the 
Commander's Emergency Response Program, with certain 
limitations.
    Section 9006 provides lift and sustainment to coalition 
forces supporting military and stability operations in 
Afghanistan.
    Section 9007 prohibits the establishment of permanent bases 
in Iraq or Afghanistan or United States control over Iraq oil 
resources.
    Section 9008 prohibits the use of funding in contravention 
of the United Nations Convention Against Torture and Other 
Cruel, Inhuman or Degrading Treatment or Punishment.
    Section 9009 limits the obligation of funding for the 
Afghanistan Security Forces Fund until certain conditions have 
been met.
    Section 9010 provides for the purchase of items of a 
particular investment unit cost from funding made available for 
operation and maintenance.
    Section 9011 has been amended and provides funding for the 
Task Force for Business and Stability Operations in 
Afghanistan.
    Section 9012 has been amended and provides funding for the 
operations and activities of the Office of Security Cooperation 
in Iraq and security assistance teams.
    Section 9013 is a new provision stating that each amount 
designated in this Act by Congress for Overseas Contingency 
Operations/Global War on Terrorism pursuant to Section 
251(b)(2)(A)(ii) of the Balanced Budget and Emergency Deficit 
Control Act shall be available only if the President 
subsequently so designates all such amounts and transmits such 
designations to Congress.
    Section 9014 has been amended and provides for the 
rescission of $579,900,000 from the following programs:

 
 
 
2009 Appropriations:
    General Provisions:
        Retroactive Stop Loss Special Pay Program.....       $79,900,000
2012 Appropriations:
    Afghanistan Security Forces Fund:
        Afghanistan Security Forces Fund..............       500,000,000
 

    Section 9015 is a new provision that restricts funds 
provided under the heading Operation and Maintenance, Defense-
wide for payments under Coalition Support Funds for 
reimbursement to the Government of Pakistan until certain 
conditions are met.
                                TITLE X

    Title X contains one new general provision. A brief 
description of the recommended provision follows:
    Section 10001 is a new provision stating that the 
applicable allocation of new budget authority made by the 
Committee on Appropriations does not exceed the amount of 
proposed new budget authority.

            HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives:

               CHANGES IN THE APPLICATION OF EXISTING LAW

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue ongoing activities which require annual authorization 
or additional legislation, which to date has not been enacted.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of law.
    The bill includes a number of provisions, which have been 
virtually unchanged for many years that are technically 
considered legislation.
    The bill provides that appropriations shall remain 
available for more than one year for some programs for which 
the basic authorizing legislation does not presently authorize 
each extended availability.
    In various places in the bill, the Committee has allocated 
funds within appropriation accounts in order to fund specific 
programs.
    Changes in the application of existing law found within 
appropriations headings:
    Language is included in various accounts placing a 
limitation on funds for emergencies and extraordinary expenses.
    Language is included that provides not more than 
$30,000,000 for the Combatant Commander Initiative Fund.
    Language is included that provides not more than 
$36,000,000 for emergencies and extraordinary expenses.
    Language is included that provides not less than 
$35,897,000 for the Procurement Technical Assistance 
Cooperative Agreement Program, of which not less than 
$3,600,000 shall be available for centers.
    Language is included that makes available $8,563,000 for 
certain classified activities and allows such funds to be 
transferred between certain accounts.
    Language is included that provides that any transfer 
authority provided under the heading ``Operation and 
Maintenance, Defense-Wide'' shall be in addition to any other 
transfer authority provided in this Act.
    Language is included under the various Environmental 
Restoration accounts that provides that the Service Secretaries 
may transfer such funds for the purposes of the funds provided 
under such appropriations headings.
    Language is included that provides for specific 
construction, acquisition, or conversion of vessels under the 
heading ``Shipbuilding and Conversion, Navy''.
    Language is included under the heading ``National Guard and 
Reserve Equipment'' requiring submission of a priority 
modernization assessment and placing a limitation on the use of 
research, development, test and evaluation funds for certain 
activities.
    Language is included under the heading ``Research, 
Development, Test and Evaluation, Navy'' that provides funds 
for certain activities.
    Language is included under the heading ``Research, 
Development, Test and Evaluation, Defense-Wide'' that provides 
$250,000,000 for the Defense Rapid Innovation Program and 
provides for the transfer of funds.
    Language is included that provides for the transfer of 
funds within the ``National Defense Sealift Fund''.
    Language is included that prohibits the use of funds 
provided under ``National Defense Sealift Fund'' to award new 
contracts that provide for the acquisition of major components 
unless such components are made in the United States.
    Language is included that provides that the exercise of an 
option in a contract award through the obligation of previously 
appropriated funds shall not be considered to be the award of a 
new contract.
    Language is included that provides waiver authority of the 
Buy America provisions under ``National Defense Sealift Fund'' 
under certain circumstances.
    Language is included that provides that not less than 
$8,000,000 of funds provided under ``Defense Health Program'' 
shall be available for HIV/AIDS prevention education 
activities.
    Language is included that provides for the carry-over of 
one percent of the Operation and Maintenance account under the 
``Defense Health Program''.
    Language is included that limits obligation of funds 
provided under the ``Defense Health Program'' for the 
integrated Department of Defense-Department of Veterans Affairs 
integrated health record pending submission of a report.
    Language is included that provides for the transfer of 
funds under ``Drug Interdiction and Counter-Drug Activities''. 
Such transfer authority shall be in addition to other transfer 
authority provided elsewhere in the Act.
    Language is included that allows the Director of the Joint 
Improvised Explosive Defeat Organization to undertake certain 
activities.
    Language is included that requires that within 60 days of 
enactment of this Act, a plan for the intended management and 
use of the Joint Improvised Explosive Defeat Fund is to be 
provided to the congressional defense committees.
    Language is included that requires the Secretary of Defense 
to submit a report to the congressional defense committees 
providing assessments of the evolving threats, service 
requirements to counter threats, pre-deployment training 
strategy, and funds execution of the Joint Improvised Explosive 
Defeat Fund.
    Language is included under the Joint Improvised Explosive 
Defeat Fund to transfer funds. Such transfer authority shall be 
in addition to other transfer authority provided elsewhere in 
the Act.
    Language is included that provides that no funds made 
available in this Act may be used for publicity or propaganda 
purposes not authorized by Congress.
    Language is included that provides for conditions and 
limitations on the payment of compensation to, or employment 
of, foreign nationals.
    Language is included that provides that no funds made 
available in this Act may be obligated beyond the end of the 
fiscal year unless express provision for a greater period of 
availability is provided elsewhere in this Act.
    Language is included that provides a 20 percent limitation 
on the obligation of funds provided in this Act during the last 
two months of the fiscal year.
    Language is included that provides for general transfer 
authority.
    Language is included that provides for incorporation of 
project level tables.
    Language is included that provides for the establishment of 
a baseline for application of reprogramming and transfer 
authorities for fiscal year 2013 and prohibits certain 
reprogrammings until after submission of a report.
    Language is included that provides for limitations on the 
use and transfer authority of working capital fund cash 
balances.
    Language is included that provides that none of the funds 
appropriated in this Act may be used to initiate a special 
access program without prior notification to the congressional 
defense committees.
    Language is included that provides limitations and 
conditions on the use of funds made available in this Act to 
initiate multi-year contracts.
    Language is included that provides for the use and 
obligation of funds for humanitarian and civic assistance costs 
under Chapter 20 of title 10, United States Code.
    Language is included that provides that civilian personnel 
of the Department may not be managed on the basis of end 
strength or be subject to end strength limitations.
    Language is included that prohibits funds made available in 
this Act from being used to influence congressional action on 
any matters pending before the Congress.
    Language is included that prohibits compensation from being 
paid to any member of the Army who is participating as a full-
time student and who receives benefits from the Education 
Benefits Fund when time spent as a full-time student is counted 
toward that member's service commitment.
    Language is included that provides for the transfer of 
funds appropriated in title III of this Act for the Department 
of Defense Pilot Mentor-Protege Program.
    Language is included that provides for the Department of 
Defense to purchase anchor and mooring chains manufactured only 
in the United States.
    Language is included that prohibits funds made available to 
the Department of Defense from being used to demilitarize or 
dispose of surplus firearms.
    Language is included that provides a limitation on funds 
being used for the relocation of any Department of Defense 
entity into or within the National Capital Region.
    Language is included that provides for incentive payments 
authorized by section 504 of the Indian Financing Act of 1974 
(25 U.S.C. 1544).
    Language is included that provides that no funds made 
available in this Act for the Defense Media Activity may be 
used for national or international political or psychological 
activities.
    Language is included that provides for the obligation of 
funds for purposes specified in section 2350j(c) of title 10, 
United States Code.
    Language is included that provides funding for the Civil 
Air Patrol Corporation.
    Language is included that provides for the number of staff 
years of technical effort that may be funded for defense 
Federally Funded Research and Development Centers.
    Language is included that provides for the Department of 
Defense to procure carbon, alloy, or armor steel plate melted 
and rolled only in the United States and Canada.
    Language is included that defines congressional defense 
committees as being the Armed Services Committees and the 
Subcommittees on Defense of the Committees on Appropriations of 
the House and Senate.
    Language is included that provides for competitions between 
private firms and Department of Defense Depot Maintenance 
Activities for modification, depot maintenance, and repair of 
aircraft, vehicles, and vessels, as well as the production of 
components and other Defense-related articles.
    Language is included that provides for revocation of 
blanket waivers of the Buy America Act upon a finding that a 
country has violated a reciprocal trade agreement by 
discriminating against products produced in the United States 
that are covered by the agreement.
    Language is included that provides for the availability of 
funds for purposes specified in section 2921(c)(2) of the 1991 
National Defense Authorization Act, namely facility maintenance 
and repair and environmental restoration at military 
installations in the United States.
    Language is included that provides for the conveyance, 
without consideration, of relocatable housing units located at 
Grand Forks, Malmstrom, Mountain Home, Ellsworth, and Minot Air 
Force Bases to Indian Tribes that are excess to Air Force 
needs.
    Language is included that provides authority to use 
operation and maintenance appropriations to purchase items 
having an investment item unit cost of not more than $250,000.
    Language is included that prohibits the purchase of 
specified investment items within Working Capital Fund.
    Language is included that provides that none of the funds 
appropriated for the Central Intelligence Agency shall remain 
available for obligation beyond the current fiscal year except 
for funds appropriated for the Reserve for Contingencies, the 
Working Capital Fund, or other certain programs authorized 
under section 503 of the National Security Act.
    Language is included that provides that funds available for 
the Defense Intelligence Agency may be used for intelligence 
communications and intelligence information systems for the 
Services, the Unified and Specified Commands, and the component 
commands.
    Language is included that provides that not less than 
$12,000,000 within ``Operation and Maintenance, Defense-Wide'' 
shall be for mitigation of environmental impacts on Indian 
lands.
    Language is included that provides for the Department of 
Defense to comply with the Buy American Act (chapter 83 of 
title 41, United States Code).
    Language is included that provides conditions under which 
contracts for studies, analyses, or consulting services may be 
entered into without competition on the basis of an unsolicited 
proposal.
    Language is included that provides for the limitations of 
funds made available in this Act to establish Field Operating 
Agencies.
    Language is included that provides grant authorities for 
the Department of Defense acting through the Office of Economic 
Adjustment.
    Language is included that provides for the limitations on 
the conversion of an activity or function of the Department of 
Defense to contractor performance.
    Language is included that provides for the rescission of 
previously appropriated funds.
    Language is included that prohibits funds made available in 
this Act from being used to reduce authorized positions for 
military technicians (dual status) of the Army National Guard, 
Air National Guard, Army Reserve, and Air Force Reserve unless 
such reductions are a direct result of a reduction in military 
force structure.
    Language is included that provides that none of the funds 
made available in this Act may be obligated or expended for 
assistance to the Democratic People's Republic of Korea unless 
appropriated for that purpose.
    Language is included that provides for reimbursement to the 
National Guard and reserve when members of the National Guard 
and reserve provide intelligence or counterintelligence support 
to the Combatant Commands, Defense Agencies, and Joint 
Intelligence Activities.
    Language is included that prohibits funds made available in 
this Act from being used to reduce civilian medical and medical 
support personnel assigned to military treatment facilities 
below the September 30, 2003, level unless the Service Surgeons 
General certify to the congressional defense committees that it 
is a responsible stewardship of resources to do so.
    Language is included that provides that Defense and Central 
Intelligence Agencies' drug interdiction and counter-drug 
activity funds may not be transferred to other agencies unless 
specifically provided in an appropriations law.
    Language is included that prohibits the use of funds 
appropriated by this Act for the procurement of ball and roller 
bearings other than those produced by a domestic source and of 
domestic origin.
    Language is included that provides for the Department of 
Defense to purchase supercomputers manufactured only in the 
United States unless the Secretary certifies such acquisition 
must be made for national security purposes.
    Language is included that prohibits the use of funds made 
available in this or any other Act to transfer administrative 
responsibilities or budgetary resources of any program, 
project, or activity financed by this Act to the jurisdiction 
of another Federal agency not financed by this Act without 
expressed authorization of the Congress.
    Language is included that provides for prior Congressional 
notification of article transfers to international peacekeeping 
organizations.
    Language is included that prohibits the use of funds made 
available in this Act for contractor bonuses from being paid 
due to business restructuring.
    Language is included that provides for the transfer of 
funds to be used to support personnel supporting approved non-
traditional defense activities.
    Language is included that provides for the Department of 
Defense to dispose of negative unliquidated or unexpended 
balances for expired or closed accounts.
    Language is included that provides conditions for the use 
of equipment of the National Guard Distance Learning Project on 
a space-available, reimbursable basis.
    Language is included that provides for the availability of 
funds provided by this Act to implement cost-effective 
agreements for required heating facility modernization in the 
Kaiserslautern Military Community, Germany.
    Language is included that provides for the limitation on 
the use of funds appropriated in title IV to procure end-items 
for delivery to military forces for operational training, 
operational use, or inventory requirements.
    Language is included that provides for a waiver of the 
``Buy America'' provisions for certain cooperative programs.
    Language is included that prohibits the use of funds made 
available in this Act to support the training of members of 
foreign security forces who have engaged in gross violations of 
human rights.
    Language is included that prohibits the use of funds made 
available in this Act for repairs or maintenance to military 
family housing units.
    Language is included that provides obligation authority for 
new starts for advanced concept technology demonstration 
projects only after notification to the congressional defense 
committees.
    Language is included that provides that the Secretary of 
Defense shall provide a classified quarterly report on certain 
matters as directed in the classified annex accompanying this 
Act.
    Language is included that prohibits the use of funds made 
available to the Department of Defense to provide support to an 
agency that is more than 90 days in arrears in making payments 
to the Department of Defense for goods or services provided on 
a reimbursable basis.
    Language is included that provides for the use of National 
Guard personnel to support ground-based elements of the 
National Ballistic Missile Defense System.
    Language is included that prohibits the use of funds made 
available in this Act to transfer to any nongovernmental entity 
ammunition held by the Department of Defense that has a center-
fire cartridge and is designated as ``armor piercing'' except 
for demilitarization purposes.
    Language is included that provides for a waiver by the 
Chief, National Guard Bureau or his designee for all or part of 
consideration in cases of personal property leases of less than 
one year.
    Language is included that prohibits funds made available in 
this Act from being used to purchase alcoholic beverages.
    Language is included that provides for the transfer of 
funds made available in this Act under ``Operation and 
Maintenance, Army'' to other activities of the Federal 
Government for classified purposes.
    Language is included that provides for the forced matching 
of disbursement and obligations made by the Department of 
Defense in fiscal year 2013.
    Language is included that provides grant authority for the 
construction and furnishing of additional Fisher Houses to meet 
the needs of military family members when confronted with the 
illness or hospitalization of an eligible military beneficiary.
    Language is included that provides funding and transfer 
authority for the Israeli Cooperative missile defense programs.
    Language is included that prohibits the use of funds made 
available in this Act to be obligated to modify the command and 
control relationship to give the Fleet Forces Command 
administration and operations control of U.S. Naval Forces 
assigned to the Pacific Fleet.
    Language is included that provides for the transfer of 
funds to properly complete prior year shipbuilding programs.
    Language is included that provides that funds made 
available in this Act are deemed to be specifically authorized 
by Congress for purposes of section 504 of the National 
Security Act of 1947.
    Language is included that prohibits the use of funds made 
available in this Act to initiate a new start program without 
prior written notification.
    Language is included that provides that the budget of the 
President for fiscal year 2014 shall include separate budget 
justification documents for costs of the United States Armed 
Forces' participation in contingency operations that contain 
certain budget exhibits as defined in the Department of Defense 
Financial Management Regulation.
    Language is included that prohibits funds made available in 
this Act from being used for the research, development, test, 
evaluation, procurement, or deployment of nuclear armed 
interceptors of a missile defense system.
    Language is included that provides the Secretary of Defense 
discretionary authority to make grants to the United Service 
Organizations and the Red Cross if he determines it to be in 
the national interest.
    Language is included that prohibits funds made available in 
this Act from being used to reduce or disestablish the 
operation of the 53rd Weather Reconnaissance Squadron of the 
Air Force Reserve.
    Language is included that prohibits funds made available in 
this Act from being used for the integration of foreign 
intelligence information unless the information has been 
lawfully collected and processed during conduct of authorized 
foreign intelligence activities.
    Language is included that provides that at the time members 
of reserve components of the Armed Forces are called or ordered 
to active duty, each member shall be notified in writing of the 
expected period during which the member will be mobilized.
    Language is included that provides that the Secretary of 
Defense may transfer funds from any available Department of the 
Navy appropriation to any available Navy ship construction 
appropriation to liquidate costs caused by rate adjustments or 
other economic factors.
    Language is included that provides for the use of current 
and expired ``Shipbuilding and Conversion, Navy'' subdivisions 
to reimburse the Judgment Fund.
    Language is included that prohibits the transfer of program 
authorities related to tactical unmanned aerial vehicles from 
the Army.
    Language is included that provides funding and authority 
for the Asia Pacific Regional Initiative program.
    Language is included that limits the obligation authority 
of funds provided for the Director of National Intelligence to 
the current fiscal year except for research and technology 
which shall remain available for the current and the following 
fiscal years.
    Language is included that provides for the adjustment of 
obligations within the ``Shipbuilding and Conversion, Navy'' 
appropriation.
    Language is included that provides that the Director of 
National Intelligence shall include certain budget exhibits 
with the congressional budget justification books.
    Language is included that prohibits transfers of funds 
until the Director of National Intelligence submits a baseline 
for application of reprogramming and transfer authorities.
    Language is included that sets forth reprogramming and 
transfer procedures for the National Intelligence Program.
    Language is included that provides that the Director of 
National Intelligence shall provide budget exhibits identifying 
the five year future-years intelligence program.
    Language is included that defines the congressional 
intelligence committees.
    Language is included that directs the Department of Defense 
to report on the Cost of War Execution Report on a monthly 
basis.
    Language is included that provides that funds may be used 
for the Defense Acquisition Workforce Development Fund.
    Language is included that provides that agencies post 
congressionally directed reports on a public website.
    Language is included that provides limitations on the award 
of contracts to contractors that require mandatory arbitration 
for certain claims as a condition of employment or a 
contractual relationship. The Secretary is authorized to waive 
the applicability of these limitations for national security 
interests.
    Language is included that provides funds and transfer 
authority for the Joint Department of Defense-Department of 
Veterans Affairs Medical Facility Demonstration Fund.
    Language is included that provides a limitation on the 
number of senior executives employed by the Office of the 
Director of National Intelligence.
    Language is included that provides a limitation on certain 
senior mentors unless such mentors make certain financial 
disclosures.
    Language is included that provides authority to purchase 
heavy and light armored vehicles notwithstanding price or other 
limitations on the purchase of passenger carrying vehicles.
    Language is included that provides availability of funds 
appropriated under ``Operation and Maintenance, Defense-Wide'' 
for activities related to the military buildup of Guam.
    Language is included that places limitations on the number 
of parking spaces provided by the BRAC 133 project, with 
certain waiver authorities.
    Language is included that requires the Secretary of Defense 
to provide monthly reports on civilian personnel end strength.
    Language is included that provides transfer authority for 
the Director of National Intelligence for the National 
Intelligence Program.
    Language is included that provides funding for 
construction, renovation, repair, and expansion of public 
schools on military installations.
    Language is included that prohibits funds to transfer or 
release certain individuals detained at Guantanamo Bay, Cuba 
into the United States, its territories, or possessions.
    Language is included that places limitations on the 
transfer or release of certain individuals detained at 
Guantanamo Bay, Cuba to the custody or control of a foreign 
country unless certain certifications are provided.
    Language is included that prohibits funds to construct, 
acquire, or modify any facility in the United States, its 
territories, or possessions to house individuals detained at 
Guantanamo Bay, Cuba.
    Language is included that places limitations on the 
provision of funds to any corporation with an unpaid Federal 
tax liability.
    Language is included that places limitations on the 
provision of funds to any corporation convicted of a felony 
criminal violation within the preceding 24 months.
    Language is included that directs the Secretary of the Air 
Force to obligate and expend funds previously appropriated for 
the purposes for which such funds were originally provided.
    Language is included that places limitations and 
requirements on the use of funds for reimbursements to key 
cooperating nations for logistical, military, and other 
support.
    Language is included that provides funds and transfer 
authority for overseas contingency operations.
    Language is included that provides authority for 
infrastructure projects in Afghanistan subject to certain 
conditions and reporting requirements.
    Language is included that provides authority for the 
provision of assistance to Afghanistan Security Forces subject 
to certain notification requirements.
    Language is included that provides for supervision and 
administration costs associated with overseas contingency 
operations.
    Language is included that provides authority to purchase 
passenger, heavy, and light armored vehicles notwithstanding 
price or other limitations on the purchase of passenger 
carrying vehicles for use in the U.S. Central Command area of 
responsibility.
    Language is included that provides funds and authority for 
the Commander's Emergency Response Program and establishes 
certain reporting requirements.
    Language is included that authorizes the use of funds to 
provide certain assistance to coalition forces supporting 
military and stability operations in Afghanistan and 
establishes certain reporting requirements.
    Language is included that places limitations on the use of 
Afghanistan Security Forces Funds and requires certain 
certifications.
    Language is included that authorizes up to $88,000,000 
under the heading ``Operation and Maintenance, Army'' for the 
Task Force for Business and Stability Operations in 
Afghanistan, subject to certain reporting requirements.
    Language is included that authorizes up to $508,000,000 
under the heading ``Operation and Maintenance, Air Force'' for 
the Office of Security Cooperation in Iraq and security 
assistance teams, subject to written notice requirements.
    Language is included that places limitations on the use of 
Coalition Support Funds for the Government of Pakistan.

                           TRANSFER OF FUNDS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    Language has been included under ``Operation and 
Maintenance, Defense-Wide'' which provides for the transfer of 
funds for certain classified activities.
    Language has been included under ``Environmental 
Restoration, Army'' which provides for the transfer of funds 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris, or for 
similar purposes.
    Language has been included under ``Environmental 
Restoration, Navy'' which provides for the transfer of funds 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris, or for 
similar purposes.
    Language has been included under ``Environmental 
Restoration, Air Force'' which provides for the transfer of 
funds for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris, or for 
similar purposes.
    Language has been included under ``Environmental 
Restoration, Defense-Wide'' which provides for the transfer of 
funds for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris, or for 
similar purposes.
    Language has been included under ``Environmental 
Restoration, Formerly Used Defense Sites'' which provides for 
the transfer of funds for environmental restoration, reduction 
and recycling of hazardous waste, removal of unsafe buildings 
and debris, or for similar purposes.
    Language has been included under ``Research, Development, 
Test and Evaluation, Defense Wide'' which provides for the 
transfer of funds for the Defense Rapid Innovation Program to 
appropriations for research, development, test and evaluation.
    Language has been included under ``Drug Interdiction and 
Counter-Drug Activities, Defense'' which provides for the 
transfer of funds to appropriations available to the Department 
of Defense for military personnel of the reserve components; 
operation and maintenance; procurement; and research, 
development, test and evaluation.
    Language has been included under ``Joint Improvised 
Explosive Device Defeat Fund'' which provides for the transfer 
of funds to appropriations for operation and maintenance; 
procurement; research, development, test and evaluation; and 
defense working capital funds to assist United States forces in 
the defeat of improvised explosive devices.
    Language has been included under ``General Provisions, Sec. 
8005'' which provides for the transfer of working capital funds 
to other appropriations accounts of the Department of Defense 
for military functions.
    Language has been included under ``General Provisions, Sec. 
8008'' which provides for the transfer of funds between working 
capital funds and the ``Foreign Currency Fluctuations, 
Defense'' appropriations and the ``Operation and Maintenance'' 
appropriation accounts.
    Language has been included under ``General Provisions, Sec. 
8015'' which provides for the transfer of funds from the 
Department of Defense Pilot Mentor-Protege Program to any other 
appropriation for the purposes of implementing a Mentor-Protege 
Program development assistance agreement.
    Language has been included under ``General Provisions, Sec. 
8051'' which provides for the transfer of funds from 
``Operation and Maintenance, Defense-Wide'' to appropriations 
available for the pay of military personnel in connection with 
support and services of eligible organizations and activities 
outside the Department of Defense.
    Language has been included under ``General Provisions, Sec. 
8066'' which provides for the transfer of funds from 
``Operation and Maintenance, Army'' to other activities of the 
federal government.
    Language has been included under ``General Provisions, Sec. 
8069'' which provides for the transfer of funds from 
``Research, Development, Test and Evaluation, Defense-Wide'' 
for the Israeli Cooperative Programs.
    Language has been included under ``General Provisions, Sec. 
8071'' which provides for the transfer of funds within 
``Shipbuilding and Conversion, Navy'' to fund prior year 
shipbuilding cost increases.
    Language has been included under ``General Provisions, Sec. 
8080'' which provides for the transfer of funds to available 
Navy ship construction appropriations for the purpose of 
liquidating liabilities resulting from inflation, market 
fluctuations, or rate adjustments.
    Language has been included under ``General Provisions, Sec. 
8093'' which provides for the transfer of funds from 
``Operation and Maintenance, Army'', ``Operation and 
Maintenance, Navy'', and ``Operation and Maintenance, Air 
Force'' to the central fund established for Fisher Houses and 
Suites.
    Language has been included under ``General Provisions, Sec. 
8094'' which provides that funds appropriated for operation and 
maintenance may be available for the purpose of making 
remittances to the Defense Acquisition Workforce Development 
Fund.
    Language has been included under ``General Provisions, Sec. 
8098'' which provides for the transfer of funds to the Joint 
Department of Defense--Department of Veterans Affairs Medical 
Facility Demonstration Fund.
    Language has been included under ``General Provisions, Sec. 
8106'' which provides for the transfer of funds for the 
National Intelligence Program.
    Language has been included under ``General Provisions, Sec. 
8107'' which provides for the transfer of funds from 
``Operation and Maintenance, Defense-Wide'' to the Secretary of 
Education to construct, renovate, repair, or expand elementary 
and secondary public schools on military installations to 
address capacity or facility condition deficiencies.
    Language has been included under title IX ``Operation and 
Maintenance, Navy'' which provides for the transfer of funds to 
the Coast Guard ``Operating Expenses'' account.
    Language has been included under title IX ``Overseas 
Contingency Operations Transfer Fund'' which provides for the 
transfer of funds to military personnel; operation and 
maintenance; procurement; and working capital fund accounts for 
expenses directly related to overseas contingency operations.
    Language has been included under title IX ``Afghanistan 
Infrastructure Fund'' which provides for the transfer of funds 
to the Department of State for purposes of undertaking 
infrastructure projects in Afghanistan.
    Language has been included under title IX ``Joint 
Improvised Explosive Device Defeat Fund'' which provides for 
the transfer of funds to appropriations for military personnel; 
operation and maintenance; procurement; research, development, 
test and evaluation; and defense working capital funds to 
assist United States forces in the defeat of improvised 
explosive devices.
    Language has been included under ``General Provisions, Sec. 
9002'' which provides for the authority to transfer funds in 
title IX subject to certain conditions.

                              RESCISSIONS

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

General Provisions, 2009................................     $79,900,000
Procurement of Ammunition, Army, 2011/2013..............      14,862,000
Aircraft Procurement, Navy, 2011/2013...................      30,100,000
Weapons Procurement, Navy, 2011/2013....................      22,000,000
Other Procurement, Navy, 2011/2013......................      12,432,000
Aircraft Procurement, Air Force, 2011/2013..............      65,000,000
Other Procurement, Air Force, 2011/2013.................       9,500,000
Afghanistan Security Forces Funds, 2012.................     500,000,000
Other Procurement, Army, 2012/2014......................      80,000,000
Aircraft Procurement, Navy, 2012/2014...................      14,400,000
Weapons Procurement, Navy, 2012/2014....................      31,572,000
Aircraft Procurement, Air Force, 2012/2014..............     277,050,000
Missile Procurement, Air Force, 2012/2014...............      44,000,000
Other Procurement, Air Force, 2012/2014.................      55,800,000
Research, Development, Test and Evaluation, Army, 2012/
    2013................................................      63,000,000
Research, Development, Test and Evaluation, Navy, 2012/
    2013................................................     120,000,000
Research, Development, Test and Evaluation, Air Force, 
    2012/2013...........................................     179,600,000

                    TRANSFER OF UNEXPENDED BALANCES

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the bill contains a general provision 
which allows for the transfer of unexpended balances from the 
Operation and Maintenance and Military Personnel accounts to 
the ``Foreign Currency Fluctuation, Defense'' account to 
address shortfalls due to foreign currency fluctuation.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                        CONSTITUTIONAL AUTHORITY

    Pursuant to Section 6(e) of the rules of the Committee on 
Appropriations of the House of Representatives, the following 
statement is submitted regarding the specific powers granted to 
the Congress in the Constitution to enact the accompanying bill 
or joint resolution.
    The principal constitutional authority for this legislation 
is clause 7 of section 9 of article I of the Constitution of 
the United States (the appropriation power), which states: ``No 
Money shall be drawn from the Treasury, but in Consequence of 
Appropriations made by Law .  .  .  .'' In addition, clause 1 
of section 8 of article I of the Constitution (the spending 
power) provides: ``The Congress shall have the Power ... to pay 
the Debts and provide for the common Defence and general 
Welfare of the United States ....'' Together, these specific 
constitutional provisions establish the congressional power of 
the purse, granting the Congress the authority to appropriate 
funds, to determine their purpose, amount, and period of 
availability, and to set forth terms and conditions governing 
their use.

          COMPLIANCE WITH RULE XIII, CL. 3(E) (RAMSEYER RULE)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, the Committee notes that the 
accompanying bill does not propose to repeal or amend a statute 
or part thereof.

                      EARMARK DISCLOSURE STATEMENT

    Neither the bill nor the report contains any congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in Clause 9 of Rule XXI.

                 COMPARISON WITH THE BUDGET RESOLUTION

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation. This information 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                  302(b) allocation             This bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees of amounts in the Budget Resolution
 for 2013: Subcommittee on Defense
    Discretionary:
        General Purpose.....................................      519,220      573,770      519,219   \1\573,770
        Overseas Contingency Operations\2\..................       88,480       48,420       88,480       48,420
    Mandatory...............................................          514          514          514         514
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Overseas Contingency Operations/Global War on Terrorism.

                      FIVE-YEAR OUTLAY PROJECTIONS

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill.

                        [In millions of dollars]
------------------------------------------------------------------------
                                                  Non-OCO        OCO
------------------------------------------------------------------------
Projection of outlays associated with the
 recommendation:
 
    2013......................................   \1\335,170    \1\48,420
    2014......................................      111,768       27,481
    2015......................................       39,306        8,593
    2016......................................       16,872        2,571
     2017 and future years....................       12,235         859
------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.
Note: OCO is Overseas Contingency Operations/Global War on Terrorism.

          FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

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

                          FULL COMMITTEE VOTES

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call on 
an amendment or on the motion to report, together with the 
names of those voting for and those voting against, are printed 
below:
    No record votes were ordered during consideration of the 
bill in Committee. 

                            ADDITIONAL VIEWS
           FY 2013 DEPARTMENT OF DEFENSE APPROPRIATIONS BILL

    In this bill, the Committee has carried out its 
Constitutional responsibilities to recommend the appropriations 
necessary to provide for the common defense, and I am pleased 
to say that this work was accomplished on a bipartisan and 
collegial basis in the Committee's longstanding tradition. The 
funding and priorities set in this bill are of vital importance 
to the quality of life, force structure and readiness, and 
investments for our Armed Forces.
    The bill addresses the needs of our men and women in 
uniform as well as their dependents. The bill fully funds 
military pay and the Defense Health program. Also, for the 
third consecutive year, the bill includes funding to improve 
the condition and capacity of schools, owned and operated by 
local educational authorities or the US Department of 
Education, that are located on military installations. 
Throughout the Department of Defense, there are nearly 150 such 
schools supporting a student population of 42,000. The bill 
includes $270,000,000, $220,000,000 above the request, to 
replace inadequate schools. In addition, the bill includes 
$40,000,000 above the request for Impact Aid funding. Both of 
these measures are essential to support the school-aged 
children of US Service members.
    The bill pauses major changes to National Guard and Reserve 
Force Structure. In the budget request, DoD proposes 
significant reductions and rebalances force structure and 
missions between the Active and Reserve components. 
Particularly in the Air Force, the FY 2013 budget reflects 
decisions to divest aircraft and re-mission units in a way that 
disproportionately affects the National Guard and Reserve. In 
total the budget proposes retiring 200 aircraft in FY 2013 and 
nearly 300 aircraft over the Future Years Defense Program 
(FYDP), most of which would come from National Guard and 
Reserve force structure. The Committee recognizes many problems 
that may arise from this imbalance and has appropriately 
included funding to provide the opportunity needed to more 
carefully establish an appropriate balance.
    This Committee conducted a thorough review of the costs and 
benefits of changes to major acquisition programs proposed by 
the Department. For example, the Committee bill reconsiders the 
DoD proposal to cancel the Global Hawk Block 30 program. The 
DoD analysis in the FY 2013 budget request represents a 
dramatic reversal of the conclusions reported in the June 2011 
Nunn-McCurdy certification. Accordingly, the Committee provided 
the resources and direction to continue the program and 
consider its interaction with and relationship to other 
acquisition efforts.
    Similarly, the Committee reconsidered a number of the 
proposals in the FY 2013 budget request regarding ground forces 
and Naval aviation. For the second consecutive year, the 
Committee has considered a budget proposal allowing tank 
production to cease only to be restarted in FY 2017. The 
Committee believes that the economic case for this course of 
action is debatable, and also finds that continued production 
in the near term will bring the Army closer to a common 
equipment fleet across Active and National Guard forces. The 
Committee has made similar recommendations regarding the 
Bradley Fighting Vehicle and M88 recovery vehicle. In both 
cases, additional production will significantly upgrade the 
Army's vehicle fleet and preserve the industrial capacity 
required to produce the next generation of combat vehicles.
    The Committee also considered the Navy's proposal to bridge 
the attack fighter gap by means of service life extension 
versus new production of F/A-18E/F Hornet aircraft. In the 
Committee's view, the cost difference between service life 
extension and new aircraft, compared to the dramatic increase 
in the number of flight hours provided by new aircraft, clearly 
warrants new production.
    The Committee evaluated the investment accounts from the 
standpoint of DoD strategy as well. Prior to releasing the FY 
2013 budget request, the Defense Department announced a 
strategic review that would that would shape forces and inform 
budget preparation for years to come. An important feature of 
this strategy is an increased emphasis on the Asia-Pacific 
region. To better support this strategy, the Committee placed a 
high priority on shipbuilding programs including the Virginia 
Class submarine, DDG 51 Destroyer and the existing Cruiser 
fleet. Committee recommendations in these areas will strengthen 
Naval forces and help realize the emerging defense strategy.
    The Committee also continued its support of advanced 
technology development and support for small business 
innovation. In this bill the Committee provided $250,000,000 
for the Defense Rapid Innovation Program. This bill represents 
the 3rd year of Congressional support for this initiative, 
begun by this Committee. The Committee understands that DoD has 
received over 3,500 proposals primarily from small businesses, 
and will award funding on a competitive basis to stimulate 
innovative technology, reduce the lifecycle costs of weapons 
systems, and address various technical risks confronting the 
Defense Department.
    As the Committee works toward completing the FY 2013 bill, 
and as we assess national security risks now and in the future, 
I believe there are threats that require fresh thinking and new 
approaches. Perhaps the area of greatest concern is cyber 
defense. There is consensus among government agencies that the 
newest official domain to be defended against enemies, foreign 
and domestic, is cyberspace. However, there seems to be 
confusion when determining requirements for this mission, in 
terms of budgets, weapons, and personnel. The attacks on 
Department of Defense networks have been widely reported. This 
is evident by the fact that foreign actors probe our military's 
networks daily. Our industrial partners, whose products are 
vital to our military dominance, are also victims of cyber 
attacks in the form of industrial espionage and they have lost 
billions as a result. Although DoD has responded to the threat 
against the ``dot mil'' domain by establishing Cyber Command, 
and the successful Defense Industrial Base Pilot Program, 
significant concerns remain. The effectiveness of our defenses 
in the ``dot mil'' domain are called into question due to the 
scarcity of qualified personnel with technological and 
mathematical backgrounds; the lack of confidence in the 
integrity of the cloud storage architecture; and, the question 
of what protections DoD is able to achieve for the funding 
invested. Cyber, in all its forms, will continue to be one of 
the highest security priorities, but without a clear strategy 
and a transparent accounting of resources, questions and 
concerns will remain about our effectiveness in determining 
what is needed to defend our networks.
    In addition, I continue to believe that reducing our 
presence in Afghanistan is vital to enhancing our security. Our 
nation has paid a dear price for more than a decade of war--
more than 1,800 of our service personnel have given their lives 
in this theater of war, and prosecuting the war has taken 
hundreds of billions from our Nation's treasury. Indeed the 
financial demand of extended conflict is a chief contributor to 
our current debt crisis.
    The United States, our allies and Afghanistan stand at the 
threshold of significant changes in this conflict. On May 1, 
2012, President Obama and President Karzai signed the Strategic 
Partnership Agreement, which advances beyond the 2010 Lisbon 
Accord, and further defines the transition to Afghan control of 
their own security. According to the Administration, the 
agreement will detail how the partnership between the United 
States and Afghanistan will be normalized as we look beyond a 
responsible end to the war. The Strategic Partnership Agreement 
comes on the heels of two important memoranda of understanding 
that were negotiated and signed by Ambassador Crocker and his 
counterpart, and General Allen and his counterpart, over the 
course of March and April 2012--one on detention operations and 
the other on night operations or special operations. Both are 
designed to put Afghans in the lead on those two crucial 
issues.
    However, the Strategic Partnership Agreement does not 
define the United States' potential troop levels in the future. 
Similarly, the Agreement does not suggest specific funding 
levels, yet it commits the United States to seek funding to 
support the training, equipping, advising and sustaining of 
Afghan National Security Forces, as well as for social and 
economic assistance. Left to its own resources, the Afghans 
could likely afford about 30,000 soldiers and police officers, 
a force only one-tenth the size of the current security force.
    Most recently, at the NATO conference convened in Chicago 
on May 20, 2012, the Administration and NATO leaders have 
stated that the coalition fighting in Afghanistan will remain 
whole despite the plans of some nations to withdraw troops as 
early as 2012. Indeed, it is widely reported that some NATO 
troops, led by the United States, will likely stay behind after 
2014 both to train Afghans and act as a hedge against the 
Taliban's return. The summit will try to clarify some of these 
details.
    Despite the recent diplomatic activities, the details that 
will ultimately define the continuing US commitment in 
Afghanistan will not be worked out until the US negotiates a 
bilateral security agreement with Afghanistan. The Strategic 
Partnership Agreement noted above commits the United States and 
Afghanistan to initiate negotiations on such an agreement to 
supersede the current status of forces agreement.
    The combination of a global economic crisis, public fatigue 
from more than a decade of conflict, and severe financial 
pressure domestically within the US clearly indicate that the 
time has come not only to consider withdrawal, but also to 
consider the nature and level of continuing US support for 
Afghan Security Forces. These pressures must be a factor in 
upcoming deliberations by NATO, discussions with Afghanistan on 
future bilateral security negotiations, and in future Defense 
Appropriations bills. Achieving solutions in these areas now 
appears possible, but it will require a focused approach and we 
should begin work within the Congress and with the 
Administration in this respect.
    Finally, while I support the content of this bill and the 
process the Committee followed in its preparation, I am 
extremely disappointed that House Republicans walked away from 
the bipartisan agreement to establish $1.047 trillion as the 
Committee's allocation. A majority of their conference voted 
for the Budget Control Act agreement less than 9 months ago. By 
reneging on the agreement, House Republicans put themselves at 
odds with House Democrats, the White House, Senate Democrats, 
and Senate Republicans. Senate Minority Leader McConnell 
recently voted for allocations at $1.047 trillion and Ranking 
Member Cochran stated that it's appropriate ``for the Committee 
to proceed on the basis of the discretionary caps enacted into 
law.'' House Republicans introduced uncertainty about the 
discretionary allocation, and about whether the House majority 
will threaten to shut down the government. This uncertainty 
will slow down the appropriations process and the austere House 
allocation, if it stands, will stall economic growth and impede 
job creation.

                                   Norman D. Dicks.
```