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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2060 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 367

105th CONGRESS

  2d Session

                                S. 2060

                          [Report No. 105-189]

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 1999 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                              May 11, 1998

 Reported from the Committee on Armed Services, read twice, and placed 
                            on the calendar

                                                       Calendar No. 367
105th CONGRESS
  2d Session
                                S. 2060

                          [Report No. 105-189]

     To authorize appropriations for fiscal year 1999 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 11, 1998

   Mr. Thurmond, from the Committee on Armed Services, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL

 
     To authorize appropriations for fiscal year 1999 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Defense Authorization 
Act for Fiscal Year 1999''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional defense committees defined.
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical demilitarization program.
Sec. 108. Defense health programs.
Sec. 109. Defense export loan guarantee program.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire missile 
                            program.
Sec. 112. Condition for award of more than one multiyear contract for 
                            the family of medium tactical vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Annual reporting of costs associated with travel of members 
                            of Chemical Demilitarization Citizens' 
                            Advisory Commission.
Sec. 116. Extension of authority to carry out Armament Retooling and 
                            Manufacturing Support Initiative.
                       Subtitle C--Navy Programs

Sec. 121. CVN-77 nuclear aircraft carrier program.
Sec. 122. Increased amount to be excluded from cost limitation for 
                            Seawolf submarine program.
Sec. 123. Multiyear procurement authority for the medium tactical 
                            vehicle replacement.
                     Subtitle D--Air Force Programs

Sec. 131. Joint surveillance target attack radar system.
Sec. 132. Limitation on replacement of engines on military aircraft 
                            derived from Boeing 707 aircraft.
Sec. 133. F-22 aircraft program.
Sec. 134. C-130J aircraft program.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Crusader self-propelled artillery system program.
Sec. 212. CVN-77 nuclear aircraft carrier program.
Sec. 213. Unmanned aerial vehicle programs.
Sec. 214. Airborne laser program.
Sec. 215. Enhanced global positioning system program.
Sec. 216. Manufacturing Technology Program.
Sec. 217. Authority for use of major range and test facility 
                            installations by commercial entities.
Sec. 218. Extension of authority to carry out certain prototype 
                            projects.
                       Subtitle C--Other Matters

Sec. 231. Policy with respect to ballistic missile defense cooperation.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from the National Defense Stockpile Transaction 
                            Fund.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Special Operations Command counterproliferation and 
                            counterterrorism activities.
Sec. 312. Tagging system for identification of hydrocarbon fuels used 
                            by the Department of Defense.
Sec. 313. Pilot program for acceptance and use of landing fees charged 
                            for use of domestic military airfields by 
                            civil aircraft.
                  Subtitle C--Environmental Provisions

Sec. 321. Transportation of polychlorinated biphenyls from abroad for 
                            disposal in the United States.
Sec. 322. Modification of deadline for submittal to Congress of annual 
                            reports on environmental activities.
Sec. 323. Submarine solid waste control.
Sec. 324. Payment of stipulated penalties assessed under CERCLA.
Sec. 325. Authority to pay negotiated settlement for environmental 
                            cleanup of formerly used defense sites in 
                            Canada.
Sec. 326. Settlement of claims of foreign governments for environmental 
                            cleanup of overseas sites formerly used by 
                            the Department of Defense.
Sec. 327. Arctic military environmental cooperation program.
                  Subtitle D--Counter-Drug Activities

Sec. 331. Patrol coastal craft for drug interdiction by Southern 
                            Command.
Sec. 332. Program authority for Department of Defense support for 
                            counter-drug activities.
Sec. 333. Southwest border fence.
                       Subtitle E--Other Matters

Sec. 341. Liquidity of working-capital funds.
Sec. 342. Termination of authority to manage working-capital funds and 
                            certain activities through the Defense 
                            Business Operations Fund.
Sec. 343. Clarification of authority to retain recovered costs of 
                            disposals in working-capital funds.
Sec. 344. Best commercial inventory practices for management of 
                            secondary supply items.
Sec. 345. Increased use of smart cards.
Sec. 346. Public-private competition in the provision of support 
                            services.
Sec. 347. Condition for providing financial assistance for support of 
                            additional duties assigned to the Army 
                            National Guard.
Sec. 348. Repeal of prohibition on joint use of Gray Army Airfield, 
                            Fort Hood, Texas.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Limited exclusions of joint duty officers from limitations on 
                            number of general and flag officers.
Sec. 403. Limitation on daily average of personnel on active duty in 
                            grades E-8 and E-9.
Sec. 404. Repeal of permanent end strength requirement for support of 
                            two major regional contingencies.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Exclusion of additional reserve component general and flag 
                            officers from limitation on number of 
                            general and flag officers who may serve on 
                            active duty.
Sec. 415. Increase in numbers of members in certain grades authorized 
                            to be on active duty in support of the 
                            reserves.
Sec. 416. Consolidation of strength authorizations for active status 
                            Naval Reserve flag officers of the Navy 
                            Medical Department staff corps.
              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Streamlined selective retention process for regular officers.
Sec. 502. Permanent applicability of limitations on years of active 
                            naval service of Navy limited duty officers 
                            in grades of commander and captain.
Sec. 503. Involuntary separation pay denied for officer discharged for 
                            failure of selection for promotion 
                            requested by the officer.
Sec. 504. Term of office of the Chief of the Air Force Nurse Corps.
                 Subtitle B--Reserve Component Matters

Sec. 511. Service required for retirement of National Guard officer in 
                            higher grade.
Sec. 512. Reduced time-in-grade requirement for reserve general and 
                            flag officers involuntarily transferred 
                            from active status.
Sec. 513. Eligibility of Army and Air Force Reserve brigadier generals 
                            to be considered for promotion while on 
                            inactive status list.
Sec. 514. Composition of selective early retirement boards for rear 
                            admirals of the Naval Reserve and major 
                            generals of the Marine Corps Reserve.
Sec. 515. Use of Reserves for emergencies involving weapons of mass 
                            destruction.
                       Subtitle C--Other Matters

Sec. 521. Annual manpower requirements report.
Sec. 522. Four-year extension of certain force reduction transition 
                            period management and benefits authorities.
Sec. 523. Continuation of eligibility for voluntary separation 
                            incentive after involuntary loss of 
                            membership in Ready or Standby Reserve.
Sec. 524. Repeal of limitations on authority to set rates and waive 
                            requirement for reimbursement of expenses 
                            incurred for instruction at service 
                            academies of persons from foreign 
                            countries.
Sec. 525. Repeal of restriction on civilian employment of enlisted 
                            members.
Sec. 526. Extension of reporting dates for Commission on Military 
                            Training and Gender-Related Issues.
Sec. 527. Moratorium on changes of gender-related policies and 
                            practices pending completion of the work of 
                            the Commission on Military Training and 
                            Gender-Related Issues.
Sec. 528. Transitional compensation for abused dependent children not 
                            residing with the spouse or former spouse 
                            of a member convicted of dependent abuse.
Sec. 529. Pilot program for treating GED recipients as high school 
                            graduates for determinations of eligibility 
                            for enlisting in the Armed Forces.
Sec. 530. Waiver of time limitations for award of Distinguished Flying 
                            Cross in certain cases.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Rate of pay for cadets and midshipmen at the service 
                            academies.
Sec. 603. Payments for movements of household goods arranged by 
                            members.
Sec. 604. Leave without pay for suspended academy cadets and 
                            midshipmen.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Three-month extension of certain bonuses and special pay 
                            authorities for reserve forces.
Sec. 612. Three-month extension of certain bonuses and special pay 
                            authorities for nurse officer candidates, 
                            registered nurses, and nurse anesthetists.
Sec. 613. Three-month extension of authorities relating to payment of 
                            other bonuses and special pays.
Sec. 614. Eligibility of Reserves for selective reenlistment bonus when 
                            reenlisting or extending to perform active 
                            guard and reserve duty.
Sec. 615. Repeal of ten-percent limitation on payments of selective 
                            reenlistment bonuses in excess of $20,000.
Sec. 616. Increase of maximum amount authorized for Army enlistment 
                            bonus.
Sec. 617. Education loan repayment program for health professions 
                            officers serving in Selected Reserve.
Sec. 618. Increase in amount of basic educational assistance under all-
                            volunteer force program for personnel with 
                            critically short skills or specialties.
Sec. 619. Relationship of entitlements to enlistment bonuses and 
                            benefits under the All-Volunteer Force 
                            Educational Assistance Program.
            Subtitle C--Travel and Transportation Allowances

Sec. 621. Travel and transportation for rest and recuperation in 
                            connection with contingency operations and 
                            other duty.
Sec. 622. Payment for temporary storage of baggage of dependent student 
                            not taken on annual trip to overseas duty 
                            station of sponsor.
Sec. 623. Commercial travel of Reserves at federal supply schedule 
                            rates for attendance at inactive duty 
                            training assemblies.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Paid-up coverage under Survivor Benefit Plan.
Sec. 632. Court-required Survivor Benefit Plan coverage effectuated 
                            through elections and deemed elections.
Sec. 633. Recovery, care, and disposition of remains of medically 
                            retired member who dies during 
                            hospitalization that begins while on active 
                            duty.
                       Subtitle E--Other Matters

Sec. 641. Definition of possessions of the United States for pay and 
                            allowances purposes.
Sec. 642. Federal employees' compensation coverage for students 
                            participating in certain officer candidate 
                            programs.
Sec. 643. Authority to provide financial assistance for education of 
                            certain defense dependents overseas.
                         TITLE VII--HEALTH CARE

Sec. 701. Dependents' dental program.
Sec. 702. Extension of authority for use of personal services contracts 
                            for provision of health care at military 
                            entrance processing stations and elsewhere 
                            outside medical treatment facilities.
Sec. 703. TRICARE Prime automatic enrollments and retiree payment 
                            options.
Sec. 704. Limited continued CHAMPUS coverage for persons unaware of a 
                            loss of CHAMPUS coverage resulting from 
                            eligibility for medicare.
Sec. 705. Enhanced Department of Defense organ and tissue donor 
                            program.
Sec. 706. Joint Department of Defense and Department of Veterans 
                            Affairs reviews relating to 
                            interdepartmental cooperation in the 
                            delivery of medical care.
Sec. 707. Demonstration projects to provide health care to certain 
                            medicare-eligible beneficiaries of the 
                            military health care system.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 801. Para-aramid fibers and yarns.
Sec. 802. Procurement of travel services for official and unofficial 
                            travel under one contract.
Sec. 803. Limitation on use of price preference upon attainment of 
                            contract goal for small and disadvantaged 
                            businesses.
Sec. 804. Distribution of assistance under the Procurement Technical 
                            Assistance Cooperative Agreement Program.
Sec. 805. Defense commercial pricing management improvement.
Sec. 806. Department of Defense purchases through other agencies.
Sec. 807. Supervision of Defense Acquisition University structure by 
                            Under Secretary of Defense for Acquisition 
                            and Technology.
Sec. 808. Repeal of requirement for Director of Acquisition Education, 
                            Training, and Career Development to be 
                            within the Office of the Under Secretary of 
                            Defense for Acquisition and Technology.
Sec. 809. Eligibility of involuntarily downgraded employee for 
                            membership in an acquisition corps.
Sec. 810. Pilot programs for testing program manager performance of 
                            product support oversight responsibilities 
                            for life cycle of acquisition programs.
Sec. 811. Scope of protection of certain information from disclosure.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Reduction in number of Assistant Secretary of Defense 
                            positions.
Sec. 902. Renaming of position of Assistant Secretary of Defense for 
                            Command, Control, Communications, and 
                            Intelligence.
Sec. 903. Authority to expand the National Defense University.
Sec. 904. Reduction in Department of Defense headquarters staff.
Sec. 905. Permanent requirement for quadrennial defense review.
Sec. 906. Management reform for research, development, test, and 
                            evaluation.
Sec. 907. Restructuring of administration of Fisher Houses.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of emergency appropriations for fiscal year 
                            1999. 
Sec. 1003. Authorization of prior emergency supplemental appropriations 
                            for fiscal year 1998.
Sec. 1004. Partnership for Peace information system management.
                       Subtitle B--Naval Vessels

Sec. 1011. Iowa class battleship returned to Naval Vessel Register.
Sec. 1012. Long-term charter of three vessels in support of submarine 
                            rescue, escort, and towing.
Sec. 1013. Transfers of naval vessels to foreign countries.
       Subtitle C--Miscellaneous Report Requirements and Repeals

Sec. 1021. Repeal of reporting requirements.
Sec. 1022. Report on Department of Defense financial management 
                            improvement plan.
Sec. 1023. Feasibility study of performance of Department of Defense 
                            finance and accounting functions by private 
                            sector sources or other Federal Government 
                            sources.
Sec. 1024. Reorganization and consolidation of operating locations of 
                            the Defense Finance and Accounting Service.
Sec. 1025. Report on inventory and control of military equipment.
Sec. 1026. Report on continuity of essential operations at risk of 
                            failure because of computer systems that 
                            are not year 2000 compliant.
Sec. 1027. Reports on naval surface fire-support capabilities.
Sec. 1028. Report on roles in Department of Defense aviation accident 
                            investigations.
Sec. 1029. Strategic plan for expanding distance learning initiatives.
Sec. 1030. Report on involvement of Armed Forces in contingency and 
                            ongoing operations.
                       Subtitle D--Other Matters

Sec. 1041. Cooperative counterproliferation program.
Sec. 1042. Extension of counterproliferation authorities for support of 
                            United Nations Special Commission on Iraq.
Sec. 1043. One-year extension of limitation on retirement or 
                            dismantlement of strategic nuclear delivery 
                            systems.
Sec. 1044. Direct-line communication between United States and Russian 
                            commanders of strategic forces.
Sec. 1045. Chemical warfare defense.
Sec. 1046. Accounting treatment of advance payment of personnel.
Sec. 1047. Reinstatement of definition of financial institution in 
                            authorities for reimbursing defense 
                            personnel for Government errors in direct 
                            deposits of pay.
Sec. 1048. Pilot program on alternative notice of receipt of legal 
                            process for garnishment of federal pay for 
                            child support and alimony.
Sec. 1049. Costs payable to the Department of Defense and other federal 
                            agencies for services provided to the 
                            Defense Commissary Agency.
Sec. 1050. Collection of dishonored checks presented at commissary 
                            stores.
Sec. 1051. Defense Commissary Agency telecommunications.
Sec. 1052. Research grants competitively awarded to service academies.
Sec. 1053. Clarification and simplification of responsibilities of 
                            inspectors general regarding whistleblower 
                            protections.
Sec. 1054. Amounts recovered from claims against third parties for loss 
                            or damage to personal property shipped or 
                            stored at Government expense.
Sec. 1055. Eligibility for attendance at Department of Defense domestic 
                            dependent elementary and secondary schools.
Sec. 1056. Fees for providing historical information to the public.
Sec. 1057. Periodic inspection of the Armed Forces Retirement Home.
Sec. 1058. Transfer of F-4 Phantom II aircraft to foundation.
Sec. 1059. Act constituting presidential approval of vessel war risk 
                            insurance requested by the Secretary of 
                            Defense.
Sec. 1060. Commendation and memorialization of the United States Navy 
                            Asiatic Fleet.
Sec. 1061. Program to commemorate 50th anniversary of the Korean War.
Sec. 1062. Department of Defense use of frequency spectrum.
Sec. 1063. Technical and clerical amendments.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Repeal of employment preference not needed for recruitment 
                            and retention of qualified child care 
                            providers.
Sec. 1102. Maximum pay rate comparability for faculty members of the 
                            United States Air Force Institute of 
                            Technology.
Sec. 1103. Four-year extension of voluntary separation incentive pay 
                            authority.
Sec. 1104. Department of Defense employee voluntary early retirement 
                            authority.
Sec. 1105. Defense Advanced Research Projects Agency experimental 
                            personnel management program for technical 
                            personnel.
              TITLE XII--JOINT WARFIGHTING EXPERIMENTATION

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Reports on joint warfighting experimentation.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Army as follows:
            (1) For aircraft, $1,466,508,000.
            (2) For missiles, $1,175,539,000.
            (3) For weapons and tracked combat vehicles, 
        $1,443,108,000.
            (4) For ammunition, $1,010,155,000.
            (5) For other procurement, $3,579,511,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1999 for procurement for the Navy as follows:
            (1) For aircraft, $7,499,934,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,370,045,000.
            (3) For shipbuilding and conversion, $6,067,272,000.
            (4) For other procurement, $4,067,907,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1999 for procurement for the Marine Corps in the amount 
of $915,558,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for procurement of ammunition for the Navy and the 
Marine Corps in the amount of $459,539,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Air Force as follows:
            (1) For aircraft, $8,303,839,000.
            (2) For missiles, $2,375,803,000.
            (3) For ammunition, $384,161,000.
            (4) For other procurement, $6,792,081,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for Defense-wide procurement in the amount of $2,029,250,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement of aircraft, vehicles, communications equipment, and 
other equipment for the reserve components of the Armed Forces as 
follows:
            (1) For the Army National Guard, $10,000,000.
            (2) For the Air National Guard, $10,000,000.
            (3) For the Army Reserve, $10,000,000.
            (4) For the Naval Reserve, $10,000,000.
            (5) For the Air Force Reserve, $10,000,000.
            (6) For the Marine Corps Reserve, $10,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for procurement for the Inspector General of the Department of Defense 
in the amount of $1,300,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1999 
the amount of $780,150,000 for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare material of the 
        United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $402,387,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the Department of Defense for carrying out the Defense Export Loan 
Guarantee Program under section 2540 of title 10, United States Code, 
in the total amount of $1,250,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR LONGBOW HELLFIRE MISSILE 
              PROGRAM.

    Beginning with the fiscal year 1999 program year, the Secretary of 
the Army may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear procurement contract for the 
procurement of the Longbow Hellfire missile. The contract may be for a 
term of five years.

SEC. 112. CONDITION FOR AWARD OF MORE THAN ONE MULTIYEAR CONTRACT FOR 
              THE FAMILY OF MEDIUM TACTICAL VEHICLES.

    Before awarding a multiyear procurement contract for the production 
of the Family of Medium Tactical Vehicles to more than one contractor 
under the authority of section 112(b) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1648), the Secretary of the Army shall certify in writing to the 
congressional defense committees that--
            (1) the total quantity of Family of Medium Tactical 
        Vehicles trucks required by the Army to be delivered in any 12-
        month period exceeds the production capacity of any single 
        prime contractor; or
            (2)(A) the total cost of the procurements to the Army under 
        all such contracts over the period of the contracts will be the 
        same as or lower than the amount that would be the total cost 
        of the procurements if only one such contract were awarded; and
            (B) the vehicles to be produced by all contractors under 
        the contracts will be produced with common components that will 
        be interchangeable among similarly configured models.

SEC. 113. ARMORED SYSTEM MODERNIZATION.

    (a) Limitation.--Of the funds authorized to be appropriated under 
section 101(3), $20,300,000 of the funds available for the M1A1D 
Application Integration Kit may not be obligated for the procurement of 
the Kit until 30 days after the Secretary of the Army submits the 
report required under subsection (b).
    (b) Report.--Not later than January 31, 1999, the Secretary of the 
Army shall submit a report on armored system modernization to the 
congressional defense committees. The report shall contain an 
assessment of the current acquisition and fielding strategies for the 
M1A2 Abrams Tank and M2A3 Bradley Fighting Vehicle and an assessment of 
alternatives to those strategies. The report shall specifically include 
an assessment of an alternative fielding strategy that provides for 
placing all of the armored vehicles configured in the latest variant 
into one heavy corps. The assessment of each alternative strategy shall 
include the following:
            (1) The relative effects on warfighting capabilities in 
        terms of operational effectiveness and training and support 
        efficiencies, taking into consideration the joint warfighting 
        context.
            (2) How the alternative strategy would facilitate the 
        transition to the Future Scout and Cavalry System, the Future 
        Combat System, or other armored systems for the future force 
        structure known as the Army After Next.
            (3) How the alternative strategy fits into the context of 
        overall armored system modernization through 2020.
            (4) Budgetary implications.
            (5) Implications for the national technology and industrial 
        base.

SEC. 114. REACTIVE ARMOR TILES.

    (a) Limitation.--None of the funds authorized to be appropriated 
under section 101(3) or 102(b) may be obligated for the procurement of 
reactive armor tiles until 30 days after the date on which the 
Secretary of Defense submits to the congressional defense committees 
the study required by subsection (c).
    (b) Exception.--The limitation in subsection (a) does not apply to 
the obligation of any funds for the procurement of armor tiles for an 
armored vehicle for which the Secretary of the Army or, in the case of 
the Marine Corps, the Secretary of the Navy, had established a 
requirement for such tiles before the date of the enactment of this 
Act.
    (c) Study Required.--(1) The Secretary of Defense shall contract 
with an entity independent of the Department of Defense to conduct a 
study of the present and future operational requirements of the Army 
and the Marine Corps for reactive armor tiles for armored vehicles and 
to submit to the Secretary a report on the results of the study.
    (2) The study shall include the following:
            (A) A detailed assessment of the operational requirements 
        of the Army and the Marine Corps for reactive armor tiles for 
        each of the armored vehicles presently in use, including the 
        requirements for each vehicle in its existing configurations 
        and in configurations proposed for the vehicle.
            (B) For each armored vehicle, an analysis of the costs and 
        benefits of the procurement and installation of the tiles, 
        including a comparison of those costs and benefits with the 
        costs and benefits of any existing upgrade program for the 
        armored vehicle.
    (3) The entity carrying out the study shall request the views of 
the Secretary of the Army and the Secretary of the Navy.
    (d) Submission to Congress.--Not later than April 1, 1999, the 
Secretary of Defense shall submit to the congressional defense 
committees--
            (1) the report on the study;
            (2) the comments of the Secretary of the Army and the 
        Secretary of the Navy on the study; and
            (3) for each vehicle for which it is determined that a 
        requirement for reactive armor tiles exists, the Secretary's 
        recommendations as to the number of vehicles to be equipped 
        with the tiles.

SEC. 115. ANNUAL REPORTING OF COSTS ASSOCIATED WITH TRAVEL OF MEMBERS 
              OF CHEMICAL DEMILITARIZATION CITIZENS' ADVISORY 
              COMMISSION.

    (a) Information To Be Included in Annual Report on Chemical 
Demilitarization Program.--Section 1412(g)(2) of the Department of 
Defense Authorization Act, 1986 (50 U.S.C. 1521(g)(2)) is amended by 
adding at the end the following:
            ``(C) An accounting of all funds expended (for the fiscal 
        year covered by the report) for travel and associated travel 
        costs for Citizens' Advisory Commissioners under section 172(g) 
        of Public Law 102-484 (50 U.S.C. 1521 note).''.
    (b) Technical Amendment.--Section 1412(g) of section 1412 of such 
Act is amended by striking out ``(g) Periodic Reports.--'' and 
inserting in lieu thereof ``(g) Annual Report.--''.

SEC. 116. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING AND 
              MANUFACTURING SUPPORT INITIATIVE.

    Section 193(a) of the Armament Retooling and Manufacturing Support 
Act of 1992 (subtitle H of title I of Public Law 102-484; 10 U.S.C. 
2501 note) is amended by striking out ``During fiscal years 1993 
through 1998'' and inserting in lieu thereof ``During fiscal years 1993 
through 1999''.

                       Subtitle C--Navy Programs

SEC. 121. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    Of the amount authorized to be appropriated under section 102(a)(3) 
for fiscal year 1999, $124,500,000 is available for the advance 
procurement and advance construction of components (including nuclear 
components) for the CVN-77 nuclear aircraft carrier program.

SEC. 122. INCREASED AMOUNT TO BE EXCLUDED FROM COST LIMITATION FOR 
              SEAWOLF SUBMARINE PROGRAM.

    Section 123(a) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1650) is amended by striking 
out ``$272,400,000'' and inserting in lieu thereof ``$557,600,000''.

SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR THE MEDIUM TACTICAL 
              VEHICLE REPLACEMENT.

    Beginning with the fiscal year 1999 program year, the Secretary of 
the Navy may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear procurement contract for the 
procurement of the Medium Tactical Vehicle Replacement. The contract 
may be for a term of five years.

                     Subtitle D--Air Force Programs

SEC. 131. JOINT SURVEILLANCE TARGET ATTACK RADAR SYSTEM.

    (a) Amount for Follow-On Options.--Of the amount authorized to be 
appropriated under section 103(1) for the Joint Surveillance Target 
Attack Radar System (JSTARS) program, $72,000,000 is available for 
funding the following options:
            (1) Advance procurement of long-lead items for two 
        additional E-8C JSTARS aircraft.
            (2) Payment of expenses associated with termination of 
        production of JSTARS aircraft, together with augmentation of 
        other funding for the program for development of an improved 
        joint surveillance target attack radar, known as the radar 
        technology insertion program.
    (b) Limitation.--None of the funds available in accordance with 
subsection (a) for funding an option described in that subsection may 
be obligated until 30 days after the date on which the Secretary of 
Defense submits to Congress a plan for using the funds. The plan shall 
specify the option selected, the reasons for the selection of that 
option, and details about how the funds are to be used for that option.

SEC. 132. LIMITATION ON REPLACEMENT OF ENGINES ON MILITARY AIRCRAFT 
              DERIVED FROM BOEING 707 AIRCRAFT.

    None of the funds authorized to be appropriated under this title 
may be obligated or expended for the replacement of engines on aircraft 
of the Department of Defense that are derived from the Boeing 707 
aircraft until the Secretary of Defense has submitted the analysis 
required by section 133 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1652).

SEC. 133. F-22 AIRCRAFT PROGRAM.

    (a) Limitation on Advance Procurement.--(1) Amounts available for 
the Department of Defense for any fiscal year for the F-22 aircraft 
program may not be obligated for advance procurement for the six Lot II 
F-22 aircraft before the date that is 30 days after date that is 
applicable under paragraph (2) or (3).
    (2) The applicable date for the purposes of paragraph (1) is the 
date on which the Secretary of Defense submits a certification under 
subsection (b)(1) unless the Secretary submits a report under 
subsection (b)(2).
    (3) If the Secretary submits a report under subsection (b)(2), the 
applicable date for the purposes of paragraph (1) is the later of--
            (A) the date on which the Secretary of Defense submits the 
        report; or
            (B) the date on which the Director of Operational Test and 
        Evaluation submits the certification required under subsection 
        (c).
    (b) Certification by Secretary of Defense.--(1) Upon the completion 
of 433 hours of flight testing of F-22 flight test vehicles, the 
Secretary of Defense shall submit to the congressional defense 
committees a certification of the completion of that amount of flight 
testing. A certification is not required under this paragraph if the 
Secretary submits a report under paragraph (2).
    (2) If the Secretary determines that a number of hours of flight 
testing of F-22 flight test vehicles less than 433 hours provides the 
Defense Acquisition Board with a sufficient basis for deciding to 
proceed into production of Lot II F-22 aircraft, the Secretary may 
submit a report to the congressional defense committees upon the 
completion of that lesser number of hours of flight testing. A report 
under this paragraph shall contain the following:
            (A) A certification of the number of hours of flight 
        testing completed.
            (B) The reasons for the Secretary's determination that the 
        lesser number of hours is a sufficient basis for a decision by 
        the board.
            (C) A discussion of the extent to which the Secretary's 
        determination is consistent with each decision made by the 
        Defense Acquisition Board since January 1997 in the case of a 
        major aircraft acquisition program that the amount of flight 
        testing completed for the program was sufficient or not 
        sufficient to justify a decision to proceed into low-rate 
        initial production.
            (D) A determination by the Secretary that it is more 
        financially advantageous for the Department to proceed into 
        production of Lot II F-22 aircraft than to delay production 
        until completion of 433 hours of flight testing, together with 
        the reasons for that determination.
    (c) Certification by the Director of Operational Test and 
Evaluation.--Upon the completion of 183 hours of the flight testing of 
F-22 flight test vehicles provided for in the test and evaluation 
master plan for the F-22 aircraft program, as in effect on October 1, 
1997, the Director of Operational Test and Evaluation shall submit to 
the congressional defense committees a certification of the completion 
of that flight testing.

SEC. 134. C-130J AIRCRAFT PROGRAM.

    Not later than March 1, 1999, the Secretary of Defense shall review 
the C-130J aircraft program and submit a report on the program to the 
congressional defense committees. The report shall include at least the 
following:
            (1) A discussion of the testing planned and the testing 
        conducted under the program, including--
                    (A) the testing schedule intended at the beginning 
                of the program;
                    (B) the testing schedule as of when the testing 
                commenced; and
                    (C) an explanation of the time taken for the 
                testing.
            (2) The cost and schedule of the program, including--
                    (A) whether the Department has exercised or plans 
                to exercise contract options for fiscal years 1996, 
                1997, 1998, and 1999;
                    (B) when the Department expects the aircraft to be 
                delivered and how the delivery dates compare to the 
                delivery dates specified in the contract;
                    (C) whether the Department expects to make any 
                modification to the negotiated contract price for these 
                aircraft, and the amount and basis for any such 
                modification; and
                    (D) whether the Department expects the reported 
                delays and overruns in the development of the aircraft 
                to have any other impact on the cost, schedule, or 
                performance of the aircraft.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,838,145,000.
            (2) For the Navy, $8,199,102,000.
            (3) For the Air Force, $13,398,993,000.
            (4) For Defense-wide activities, $9,837,764,000, of which--
                    (A) $249,106,000 is authorized for the activities 
                of the Director, Test and Evaluation; and
                    (B) $25,245,000 is authorized for the Director of 
                Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1999.--Of the amounts authorized to be appropriated 
by section 201, $4,186,817,000 shall be available for basic research 
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. CRUSADER SELF-PROPELLED ARTILLERY SYSTEM PROGRAM.

    (a) Limitation.--Of the amount authorized to be appropriated for 
the Army pursuant to section 201(1), not more than $223,000,000 may be 
obligated for the Crusader self-propelled artillery system program 
until 30 days after the date on which the Secretary of the Army submits 
the report required under subsection (b).
    (b) Requirement for Report.--The Secretary of the Army shall submit 
to the congressional defense committees a report on the Crusader self-
propelled artillery system. The report shall include the following:
            (1) An assessment of the risks associated with the current 
        Crusader program technology.
            (2) The total requirements for the Crusader system, taking 
        into consideration revisions in force structure resulting from 
        the redesign of heavy and light divisions to achieve a force 
        structure known as the Army After Next.
            (3) The potential for reducing the weight of the Crusader 
        system by as much as 50 percent.
            (4) The potential for using alternative propellants for the 
        artillery projectile for the Crusader system and the effects on 
        the overall program schedule that would result from taking the 
        actions and time necessary to develop mature technologies for 
        alternative propellants.
            (5) An analysis of the costs and benefits of delaying 
        procurement of Crusader to avoid affordability issues 
        associated with the current schedule and to allow for 
        maturation of weight and propellant technologies.
    (c) Submission of Report.--The Secretary of the Army shall submit 
the report not later than March 1, 1999.

SEC. 212. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Amount for New Technologies.--Of the amounts authorized to be 
appropriated under section 201(2) for aircraft carrier system 
development, $50,000,000 shall be available only for research, 
development, test, and evaluation, and for acquisition, of technologies 
described in subsection (b) for use in the CVN-77 nuclear aircraft 
carrier program.
    (b) Technologies.--The technologies for which amounts are available 
under subsection (a) are technologies that are designed--
            (1) for a transition from the CVN-77 aircraft carrier 
        program to the CV(X) aircraft carrier program; and
            (2) for--
                    (A) demonstrating enhanced capabilities for the 
                CV(X) aircraft carrier program; or
                    (B) mitigating the cost or technical risks of that 
                program.

SEC. 213. UNMANNED AERIAL VEHICLE PROGRAMS.

    (a) Termination of Dark Star Program.--The Secretary of Defense 
shall terminate the Dark Star unmanned aerial vehicle program. Except 
as provided in subsection (b), funds available for that program may be 
obligated after the date of the enactment of this Act only for costs 
necessary for terminating the program.
    (b) Global Hawk Program.--Of the unobligated balance of the funds 
available for the Dark Star unmanned aerial vehicle program, 
$32,500,000 shall be available for the procurement of three Global Hawk 
unmanned aerial vehicles. However, none of the funds made available for 
the Global Hawk unmanned aerial vehicle program under the preceding 
sentence may be obligated or expended for that program until phase II 
testing of the Global Hawk unmanned aerial vehicle has been completed.

SEC. 214. AIRBORNE LASER PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) The development plan of the Department of Defense for 
        the Airborne Laser Program does not include the basic 
        validation of certain key technologies until 2002, which is 
        shortly before the program is scheduled to enter the 
        engineering and manufacturing development phase of development.
            (2) It is possible that the technical risk of the Airborne 
        Laser Program could be substantially reduced by restructuring 
        the program to include a technology demonstration using a low 
        power laser device to collect optical data in an operationally 
        representative environment.
            (3) Department of Defense officials are currently planning 
        to have expended approximately $1,300,000,000 on the Airborne 
        Laser Program by the end of fiscal year 2002, and a total of 
        $6,300,000,000 by the end of fiscal year 2008 for the 
        development of the system and the procurement of seven airborne 
        laser aircraft.
            (4) Due to the likely vulnerability of an airborne laser 
        system to air defense threats, the limited lethal range of the 
        laser device, and other operational limitations of the system, 
        the utility of the airborne laser system will be severely 
        restricted under a wide range of operational scenarios.
    (b) Assessment of Technical and Operational Limitations.--The 
Secretary of Defense shall conduct an assessment of the technical 
obstacles and operational shortcomings expected for the Airborne Laser 
Program. In conducting the assessment, the Secretary shall--
            (1) require the Panel on Reducing Risk in Ballistic Missile 
        Defense Test Programs to evaluate the adequacy of the test 
        program for the Airborne Laser Program; and
            (2) establish an independent team of persons from outside 
        the Department of Defense who are experts in relevant fields to 
        review the operational limitations and issues associated with 
        the Airborne Laser Program.
    (c) Report on Assessment.--Not later than March 15, 1999, the 
Secretary shall submit a report on the assessment to Congress. The 
report shall include the Secretary's findings and any recommendations 
that the Secretary considers appropriate.
    (d) Funding for Program.--Of the amount authorized to be 
appropriated under section 201(3), $195,219,000 shall be available for 
the Airborne Laser Program.
    (e) Limitation.--Of the amount made available pursuant to 
subsection (d), not more than $150,000,000 may be obligated until 30 
days after the Secretary submits the report required under subsection 
(c).

SEC. 215. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) Section 152(b) of the National Defense Authorization 
        Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) 
        prohibits the obligation of funds, after September 30, 2000, to 
        modify or procure any Department of Defense aircraft, ship, 
        armored vehicle, or indirect-fire weapon system that is not 
        equipped with a Global Positioning System receiver.
            (2) Section 279(b) of the National Defense Authorization 
        Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 243) 
        requires the Secretary of Defense to prepare a plan for 
        enhancing the Global Positioning System and to provide in that 
        plan for--
                    (A) the development of capabilities to deny hostile 
                military forces the ability to use the Global 
                Positioning System without hindering the ability of 
                United States military forces and civil users to have 
                access to and use of the system; and
                    (B) the development and acquisition of receivers 
                for the Global Positioning System and other techniques 
                for weapons and weapon systems that provide 
                substantially improved resistance to jamming and other 
                forms of electronic interference or disruption.
            (3) Section 2281 of title 10, United States Code, requires 
        the Secretary of Defense--
                    (A) to develop appropriate measures for preventing 
                hostile use of the Global Positioning System so as to 
                make it unnecessary for the Secretary to use the 
                selective availability feature of the system 
                continuously while not hindering the use of the Global 
                Positioning System by the United States and its allies 
                for military purposes;
                    (B) to ensure that the Armed Forces of the United 
                States have the capability to use the Global 
                Positioning System effectively despite hostile attempts 
                to prevent the use of the system by such forces; and
                    (C) to develop measures for preventing hostile use 
                of the Global Positioning System in a particular area 
                without hindering peaceful civil use of the system 
                elsewhere.
    (b) Policy on Priority for Development of Enhanced GPS System.--The 
development of an enhanced Global Positioning System is an urgent 
national security priority.
    (c) Development Required.--To fulfill the requirements described in 
subsection (a), the Secretary of Defense shall develop an enhanced 
Global Positioning System in accordance with the priority declared in 
subsection (b). The enhanced Global Positioning System shall consist of 
the following elements:
            (1) An evolved satellite system that includes dynamic 
        frequency reconfiguration and regional-level directional signal 
        enhancements.
            (2) Enhanced receivers and user equipment that are capable 
        of providing military users with direct access to encrypted 
        Global Positioning System signals.
            (3) To the extent funded by the Secretary of 
        Transportation, additional civil frequencies and other 
        enhancements for civil users.
    (d) Sense of Congress Regarding Funding.--It is the sense of 
Congress that--
            (1) the Secretary of Defense should ensure that the future-
        years defense program provides for sufficient funding to 
        develop and deploy an enhanced Global Positioning System system 
        in accordance with the priority declared in subsection (b); and
            (2) the Secretary of Transportation should provide 
        sufficient funding to support additional civil frequencies for 
        the Global Positioning System and other enhancements of the 
        system for civil users.
    (e) Plan for Development of Enhanced Global Positioning System.--
Not later than April 15, 1999, the Secretary of Defense shall submit to 
Congress a plan for carrying out the requirements of subsection (c).
    (f) Delayed Effective Date for Limitation on Procurement of Systems 
Not GPS-Equipped.--Section 152(b) of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) is 
amended by striking out ``2000'' and inserting in lieu thereof 
``2005''.
    (g) Funding From Authorized Appropriations for Fiscal Year 1999.--
Of the amounts authorized to be appropriated under section 201(3), 
$44,000,000 shall be available to establish and carry out an enhanced 
Global Positioning System program.

SEC. 216. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Competition and Cost Sharing.--Subsection (d) of section 2525 
of title 10, United States Code, is amended by striking out paragraphs 
(2), (3), and (4) and inserting in lieu thereof the following:
    ``(2) Except as provided in paragraph (3), the costs of a project 
carried out under the program shall be shared by the Department of 
Defense and the other parties to the grant, contract, cooperative 
agreement, or other transaction involved if any results of the project 
are likely to have an immediate and direct commercial application. The 
cost share--
            ``(A) in the case of a grant, contract, cooperative 
        agreement, or other transaction that is awarded using a 
        competitive selection process, shall be the cost share proposed 
        in the application or offer selected for the award; or
            ``(B) in a case in which there is only one applicant or 
        offeror, shall be the cost share negotiated with the applicant 
        or offeror that provides the best value for the Government.
    ``(3)(A) Cost-sharing is not required of the non-Federal Government 
parties to a grant, contract, cooperative agreement, or other 
transaction under paragraph (2) if the project is determined as being 
sufficiently high risk to discourage cost-sharing by non-Federal 
Government sources.
    ``(B) A determination under subparagraph (A) that cost-sharing is 
not required in the case of a particular grant, contract, cooperative 
agreement or other transaction shall be made by--
            ``(i) the Secretary of the military department awarding the 
        grant or entering into the contract, cooperative agreement, or 
        other transaction; or
            ``(ii) the Secretary of Defense for any other grant, 
        contract, cooperative agreement, or transaction.
    ``(C) The transaction file for a case in which cost-sharing is 
determined as not being required shall include written documentation of 
the reasons for the determination.''.
    (b) Five-Year Plan.--Subsection (e)(2) of such section is amended 
to read as follows:
    ``(2) The plan shall include the following:
            ``(A) An assessment of the effectiveness of the program.
            ``(B) An assessment of the extent to which the costs of 
        projects are being shared by the following:
                    ``(i) Commercial enterprises in the private sector.
                    ``(ii) Department of Defense program offices, 
                including weapon system program offices.
                    ``(iii) Departments and agencies of the Federal 
                Government outside the Department of Defense.
                    ``(iv) Institutions of higher education.
                    ``(v) Other institutions not operated for profit.
                    ``(vi) Other sources.''.

SEC. 217. AUTHORITY FOR USE OF MAJOR RANGE AND TEST FACILITY 
              INSTALLATIONS BY COMMERCIAL ENTITIES.

    (a) Permanent Authority.--Subsection (g) of section 2681 of title 
10, United States Code, is repealed.
    (b) Repeal of Executed Reporting Requirement.--Subsection (h) of 
such section is repealed.

SEC. 218. EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
              PROJECTS.

    Section 845(c) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note) is amended by 
striking out ``September 30, 1999'' and inserting in lieu thereof 
``September 30, 2001''.

                       Subtitle C--Other Matters

SEC. 231. POLICY WITH RESPECT TO BALLISTIC MISSILE DEFENSE COOPERATION.

    As the United States proceeds with efforts to develop defenses 
against ballistic missile attack, it should seek to foster a climate of 
cooperation with Russia on matters related to missile defense. In 
particular, the United States and its NATO allies should seek to 
cooperate with Russia in such areas as early warning.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    (a) Amounts Authorized.--Funds are hereby authorized to be 
appropriated for fiscal year 1999 for the use of the Armed Forces and 
other activities and agencies of the Department of Defense for 
expenses, not otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $17,395,563,000.
            (2) For the Navy, $22,001,302,000.
            (3) For the Marine Corps, $2,638,703,000.
            (4) For the Air Force, $19,213,404,000.
            (5) For the Special Operations Command, $1,251,503,000.
            (6) For Defense-wide activities, $9,025,598,000.
            (7) For the Army Reserve, $1,217,622,000.
            (8) For the Naval Reserve, $943,639,000.
            (9) For the Marine Corps Reserve, $134,593,000.
            (10) For the Air Force Reserve, $1,759,696,000.
            (11) For the Army National Guard, $2,476,815,000.
            (12) For the Air National Guard, $3,113,933,000.
            (13) For the Defense Inspector General, $130,764,000.
            (14) For the United States Court of Appeals for the Armed 
        Forces, $7,324,000.
            (15) For Environmental Restoration, Army, $370,640,000.
            (16) For Environmental Restoration, Navy, $274,600,000.
            (17) For Environmental Restoration, Air Force, 
        $372,100,000.
            (18) For Environmental Restoration, Defense-wide, 
        $23,091,000.
            (19) For Environmental Restoration, Formerly Used Defense 
        Sites, $195,000,000.
            (20) For Overseas Humanitarian, Demining, and CINC 
        Initiatives, $50,000,000.
            (21) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $727,582,000.
            (22) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $15,000,000.
            (23) For Medical Programs, Defense, $9,653,435,000.
            (24) For Cooperative Threat Reduction programs, 
        $440,400,000.
            (25) For Overseas Contingency Operations Transfer Fund, 
        $746,900,000.
            (26) For Impact Aid, $35,000,000.
    (b) General Limitation.--Notwithstanding paragraphs (1) through 
(25) of subsection (a), the total amount authorized to be appropriated 
for fiscal year 1999 under those paragraphs is $93,875,207,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, Air Force, 
        $30,800,000.
            (2) For Defense Working-Capital Fund, Defense-wide, 
        $63,700,000.
            (3) For the National Defense Sealift Fund, $669,566,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1999 
from the Armed Forces Retirement Home Trust Fund the sum of $70,745,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. TRANSFER FROM THE NATIONAL DEFENSE STOCKPILE TRANSACTION 
              FUND.

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 1999 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the same 
        purposes and the same period as, the amounts in the accounts to 
        which transferred; and
            (2) may not be expended for an item that has been denied 
        authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the transfer 
authority provided in section 1001.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. SPECIAL OPERATIONS COMMAND COUNTERPROLIFERATION AND 
              COUNTERTERRORISM ACTIVITIES.

    Of the amount authorized to be appropriated under section 
301(a)(5), the $18,500,000 available for the Special Operations Command 
that is not needed for the operation of six of the patrol coastal craft 
of the Department of Defense in the Caribbean Sea and Eastern Pacific 
Ocean in support of the drug interdiction efforts of the United States 
Southern Command by reason of section 331 shall be available for 
increased training and related operations in support of that command's 
counterproliferation of weapons of mass destruction and the command's 
counterterrorism activities. The amount available under the preceding 
sentence is in addition to other funds authorized to be appropriated 
under section 301(a)(5) for the Special Operations Command for such 
purposes.

SEC. 312. TAGGING SYSTEM FOR IDENTIFICATION OF HYDROCARBON FUELS USED 
              BY THE DEPARTMENT OF DEFENSE.

    (a) Authority To Conduct Pilot Program.--The Secretary of Defense 
may conduct a pilot program using existing technology to determine--
            (1) the feasibility of tagging hydrocarbon fuels used by 
        the Department of Defense for the purposes of analyzing and 
        identifying such fuels;
            (2) the deterrent effect of such tagging on the theft and 
        misuse of fuels purchased by the Department; and
            (3) the extent to which such tagging assists in determining 
        the source of surface and underground pollution in locations 
        having separate fuel storage facilities of the Department and 
        of civilian companies.
    (b) System Elements.--The tagging system under the pilot program 
shall have the following characteristics:
            (1) The tagging system does not harm the environment.
            (2) Each chemical used in the tagging system is--
                    (A) approved for use under the Toxic Substances 
                Control Act (15 U.S.C. 2601 et seq.); and
                    (B) substantially similar to the fuel to which 
                added, as determined in accordance with criteria 
                established by the Environmental Protection Agency for 
                the introduction of additives into hydrocarbon fuels.
            (3) The tagging system permits a determination if a tag is 
        present and a determination if the concentration of a tag has 
        changed in order to facilitate identification of tagged fuels 
        and detection of dilution of tagged fuels.
            (4) The tagging system does not impair or degrade the 
        suitability of tagged fuels for their intended use.
    (c) Report.--Not later than 30 days after the completion of the 
pilot program, the Secretary shall submit to Congress a report setting 
forth the results of the pilot program and including any 
recommendations for legislation relating to the tagging of hydrocarbon 
fuels by the Department that the Secretary considers appropriate.
    (d) Funding.--Of the amounts authorized to be appropriated under 
section 301(a)(6) for operation and maintenance for defense-wide 
activities, not more than $5,000,000 shall be available for the pilot 
program.

SEC. 313. PILOT PROGRAM FOR ACCEPTANCE AND USE OF LANDING FEES CHARGED 
              FOR USE OF DOMESTIC MILITARY AIRFIELDS BY CIVIL AIRCRAFT.

    (a) Pilot Program Authorized.--The Secretary of each military 
department may carry out a pilot program to demonstrate the use of 
landing fees as a source of funding for the operation and maintenance 
of airfields of the department.
    (b) Imposition of Landing Fees.--Under a pilot program carried out 
under this section, the Secretary of a military department may 
prescribe and impose landing fees for use of any military airfield of 
the department in the United States by civil aircraft during fiscal 
years 1999 and 2000. No fee may be charged under the pilot program for 
a landing after September 30, 2000.
    (c) Use of Proceeds.--Amounts received for a fiscal year in payment 
of landing fees imposed under the pilot program for use of a military 
airfield shall be credited to the appropriation that is available for 
that fiscal year for the operation and maintenance of the military 
airfield, shall be merged with amounts in the appropriation to which 
credited, and shall be available for that military airfield for the 
same period and purposes as the appropriation is available.
    (d) Report.--Not later than March 31, 2000, the Secretary of 
Defense shall submit to Congress a report on the pilot programs carried 
out under this section by the Secretaries of the military departments. 
The report shall specify the amounts of fees received and retained by 
each military department under the pilot program as of December 31, 
1999.

                  Subtitle C--Environmental Provisions

SEC. 321. TRANSPORTATION OF POLYCHLORINATED BIPHENYLS FROM ABROAD FOR 
              DISPOSAL IN THE UNITED STATES.

    (a) Authority.--Chapter 157 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 2646. Transportation of polychlorinated biphenyls from abroad; 
              disposal
    ``(a) Authority To Transport.--(1) Subject to paragraph (2), the 
Secretary of the Defense and the Secretaries of the military 
departments may provide for the transportation into the customs 
territory of the United States of polychlorinated biphenyls generated 
by or under the control of the Department of Defense for purposes of 
their disposal, treatment, or storage in the customs territory of the 
United States.
    ``(2) Polychlorinated biphenyls may be transported into the customs 
territory of the United States under paragraph (1) only if the 
Administrator of the Environmental Protection Agency determines that 
the transportation will not result in an unreasonable risk of injury to 
health or the environment.
    ``(b) Disposal.--(1) The disposal, treatment, and storage of 
polychlorinated biphenyls transported into the customs territory of the 
United States under subsection (a) shall be governed by the provisions 
of the Toxic Substances Control Act (15 U.S.C. 2601 et seq.).
    ``(2) A chemical waste landfill may not be used for the disposal, 
treatment, or storage of polychlorinated biphenyls transported into the 
customs territory of the United States under subsection (a) unless the 
landfill meets all of the technical requirements specified in section 
761.75(b)(3) of title 40, Code of Federal Regulations, as in effect on 
the date that was one year before the date of enactment of the National 
Defense Authorization Act for Fiscal Year 1999.
    ``(c) Customs Territory of the United States Defined.--In this 
section, the term `customs territory of the United States' has the 
meaning given that term in General Note 2. of the Harmonized Tariff 
Schedule of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
that chapter is amended by adding at the end the following:

``2646. Transportation of polychlorinated biphenyls from abroad; 
                            disposal.''.

SEC. 322. MODIFICATION OF DEADLINE FOR SUBMITTAL TO CONGRESS OF ANNUAL 
              REPORTS ON ENVIRONMENTAL ACTIVITIES.

    Section 2706 of title 10, United States Code, is amended by 
striking out ``not later than 30 days'' each place it appears in 
subsections (a), (b), (c), and (d) and inserting in lieu thereof ``not 
later than 45 days''.

SEC. 323. SUBMARINE SOLID WASTE CONTROL.

    (a) Solid Waste Discharge Requirements.--Subsection (c)(2) of 
section 3 of the Act to Prevent Pollution from Ships (33 U.S.C. 1902) 
is amended--
            (1) in subparagraph (A), by adding at the end the 
        following:
            ``(iii) With regard to submersibles, non-plastic garbage 
        that has been compacted and weighted to ensure negative 
        buoyancy.''; and
            (2) in subparagraph (B)(ii), by striking out ``subparagraph 
        (A)(ii)'' and inserting in lieu thereof ``clauses (ii) and 
        (iii) of subparagraph (A)''.
    (b) Conforming Amendment.--Subsection (e)(3)(A) of that section is 
amended by striking out ``garbage that contains more than the minimum 
amount practicable of''.

SEC. 324. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.

    The Secretary of Defense may pay, from amounts in the Department of 
Defense Base Closure Account 1990 established by section 2906(a)(1) of 
the Defense Base Closure and Realignment Act of 1990 (part A of title 
XXIX of Public Law 101-510; 10 U.S.C. 2687 note), not more than $15,000 
as payment of pay stipulated civil penalties assessed under the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.) against McClellan Air Force Base, 
California.

SEC. 325. AUTHORITY TO PAY NEGOTIATED SETTLEMENT FOR ENVIRONMENTAL 
              CLEANUP OF FORMERLY USED DEFENSE SITES IN CANADA.

    (a) Findings.--Congress makes the following findings with respect 
to the authorization of payment of settlement with Canada in subsection 
(b) regarding environmental cleanup at formerly used defense sites in 
Canada:
            (1) A unique and longstanding national security alliance 
        exists between the United States and Canada.
            (2) The sites covered by the settlement were formerly used 
        by the United States and Canada for their mutual defense.
            (3) There is no formal treaty or international agreement 
        between the United States and Canada regarding the 
        environmental cleanup of the sites.
            (4) Environmental contamination at some of the sites could 
        pose a substantial risk to the health and safety of the United 
        States citizens residing in States near the border between the 
        United States and Canada.
            (5) The United States and Canada reached a negotiated 
        agreement for an ex-gratia reimbursement of Canada in full 
        satisfaction of claims of Canada relating to environmental 
        contamination which agreement was embodied in an exchange of 
        Notes between the Government of the United States and the 
        Government of Canada.
            (6) There is a unique factual basis for authorizing a 
        reimbursement of Canada for environmental cleanup at sites in 
        Canada after the United States departure from such sites.
            (7) The basis for and authorization of such reimbursement 
        does not extend to similar claims by other nations.
            (8) The Government of Canada is committed to spending the 
        entire $100,000,000 of the reimbursement authorized in 
        subsection (b) in the United States, which will benefit United 
        States industry and United States workers.
    (b) Authority To Make Payments.--(1) Subject to paragraph (3), the 
Secretary of Defense may, using funds specified under subsection (c), 
make a payment described in paragraph (2) in each of fiscal years 1999 
through 2008 for purposes of the ex-gratia reimbursement of Canada in 
full satisfaction of any and all claims asserted against the United 
States by Canada for environmental cleanup of sites in Canada that were 
formerly used for the mutual defense of the United States and Canada.
    (2) A payment referred to in paragraph (1) is a payment of 
$10,000,000, in constant fiscal year 1996 dollars, into the Foreign 
Military Sales Trust Account for purposes of Canada.
    (3) A payment may be made under paragraph (1) in any fiscal year 
after fiscal year 1999 only if the Secretary of Defense submits to 
Congress with the budget for such fiscal year under section 1105 of 
title 31, United States Code, evidence that the cumulative amount 
expended by the Government of Canada for environmental cleanup 
activities in Canada during any fiscal years before such fiscal year in 
which a payment under that paragraph was authorized was an amount equal 
to or greater than the aggregate amount of the payments under that 
paragraph during such fiscal years.
    (c) Source of Funds.--A payment may be made under subsection (b) in 
a fiscal year from amounts appropriated pursuant to the authorization 
of appropriations for the Department of Defense for such fiscal year 
for Operation and Maintenance, Defense-Wide.

SEC. 326. SETTLEMENT OF CLAIMS OF FOREIGN GOVERNMENTS FOR ENVIRONMENTAL 
              CLEANUP OF OVERSEAS SITES FORMERLY USED BY THE DEPARTMENT 
              OF DEFENSE.

    (a) Notice of Negotiations.--The President shall notify Congress 
before entering into any negotiations for the ex-gratia settlement of 
the claims of a government of another country against the United States 
for environmental cleanup of sites in that country that were formerly 
used by the Department of Defense.
    (b) Authorization Required for Use Funds for Payment of 
Settlement.--Notwithstanding any other provision of law, no funds may 
be utilized for any payment under an ex-gratia settlement of any claims 
described in subsection (a) unless the use of the funds for that 
purpose is specifically authorized by law, treaty, or international 
agreement.

SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) The Secretary of Defense has developed a program to 
        address environmental matters relating to the military 
        activities of the Department of Defense in the Arctic region. 
        The program is known as the ``Arctic Military Environmental 
        Cooperation Program''.
            (2) The Secretary has carried out the Arctic Military 
        Environmental Cooperation Program using funds appropriated for 
        Cooperative Threat Reduction programs.
    (b) Activities Under Program.--(1) Subject to paragraph (2), 
activities under the Arctic Military Environmental Cooperation Program 
shall include cooperative activities on environmental matters in the 
Arctic region with the military departments and agencies of other 
countries, including the Russian Federation.
    (2) Activities under the Arctic Military Environmental Cooperation 
Program may not include any activities for purposes for which funds for 
Cooperative Threat Reduction programs have been denied, including the 
purposes for which funds were denied by section 1503 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2732).
    (c) Availability of Fiscal Year 1999 Funds.--(1) Of the amount 
authorized to be appropriated by section 301(a)(6), $4,000,000 shall be 
available for carrying out the Arctic Military Environmental Program.
    (2) Amounts available for the Arctic Military Environmental 
Cooperation Program under paragraph (1) may not be obligated or 
expended for that Program until 45 days after the date on which the 
Secretary of Defense submits to the congressional defense committees a 
plan for the Program under paragraph (3).
    (3) The plan for the Arctic Military Environmental Cooperation 
Program under this paragraph shall include the following:
            (A) A statement of the overall goals and objectives of the 
        Program.
            (B) A statement of the proposed activities under the 
        Program and the relationship of such activities to the national 
        security interests of the United States.
            (C) An assessment of the compatibility of the activities 
        set forth under subparagraph (B) with the purposes of the 
        Cooperative Threat Reduction programs of the Department of 
        Defense (including with any prohibitions and limitations 
        applicable to such programs).
            (D) An estimate of the funding to be required and requested 
        in future fiscal years for the activities set forth under 
        subparagraph (B).
            (E) A proposed termination date for the Program.

                  Subtitle D--Counter-Drug Activities

SEC. 331. PATROL COASTAL CRAFT FOR DRUG INTERDICTION BY SOUTHERN 
              COMMAND.

    Of the funds authorized to be appropriated under section 
301(a)(21), relating to drug interdiction and counter-drug activities, 
$18,500,000 shall be available for the equipping and operation of six 
of the Cyclone class coastal defense ships of the Department of Defense 
in the Caribbean Sea and Eastern Pacific Ocean in support of the drug 
interdiction efforts of the United States Southern Command.

SEC. 332. PROGRAM AUTHORITY FOR DEPARTMENT OF DEFENSE SUPPORT FOR 
              COUNTER-DRUG ACTIVITIES.

    (a) Extension of Authority.--Subsection (a) of section 1004 of the 
National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 374 
note) is amended by striking out ``through 1999'' and inserting in lieu 
thereof ``through 2004''.
    (b) Bases and Facilities Support.--(1) Subsection (b)(4) of such 
section is amended by inserting ``of the Department of Defense or any 
Federal, State, local, or foreign law enforcement agency'' after 
``counter-drug activities''.
    (2) Section 1004 of such Act is further amended by adding at the 
end the following:
    ``(h) Congressional Notification of Facilities Projects.--(1) Not 
later than 21 days before obligating funds for beginning the work on a 
project described in paragraph (2), the Secretary of Defense shall 
submit to the congressional defense committees a notification of the 
project, including the scope and estimated total cost of the project.
    ``(2) Paragraph (1) applies to a project for the modification or 
repair of a Department of Defense facility for the purpose set forth in 
subsection (b)(4) that is estimated to cost more than $500,000.''.

SEC. 333. SOUTHWEST BORDER FENCE.

    (a) Limitation of Funding for Expansion.--None of the funds 
authorized to be appropriated for the Department of Defense by this Act 
may be used to expand the Southwest border fence until the Secretary of 
Defense submits the report required by subsection (b).
    (b) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report on the extent to which the 
Southwest border fence has reduced the illegal transportation of 
narcotics and other drugs into the United States.
    (c) Southwest Border Fence Defined.--In this section, the term 
``Southwest border fence'' means the fence that was constructed, at 
Department of Defense expense, along the southwestern border of the 
United States for the purpose of preventing or reducing the illegal 
transportation of narcotics and other drugs into the United States.

                       Subtitle E--Other Matters

SEC. 341. LIQUIDITY OF WORKING-CAPITAL FUNDS.

    (a) Increased Cash Balances.--The Secretary of Defense shall 
administer the working-capital funds of the Department of Defense 
during fiscal year 1999 so as to ensure that the total amount of the 
cash balances in such funds on September 30, 1999, exceeds the total 
amount of the cash balances in such funds on September 30, 1998, by 
$1,300,000,000.
    (b) Actions Regarding Unbudgeted Losses and Gains.--(1) In order to 
achieve the increase in cash balances in working-capital funds required 
under subsection (a), the Under Secretary of Defense (Comptroller) 
shall--
            (A) assess surcharges on the rates charged to Department of 
        Defense activities for the performance of depot-level 
        maintenance and repair workloads for those activities in fiscal 
        year 1999 as necessary to recoup for the working-capital funds 
        the amounts of any operational losses that are incurred in the 
        performance of those workloads in excess of the amounts of the 
        losses that are budgeted for fiscal year 1999; and
            (B) return to Department of Defense activities any amounts 
        that--
                    (i) are realized for the working-capital funds for 
                depot-level maintenance and repair workloads in excess 
                of the estimated revenues budgeted for the performance 
                of those workloads that originate in those activities; 
                and
                    (ii) are not needed to achieve the required 
                increase in cash balances.
    (2) The Under Secretary of Defense (Comptroller) shall prescribe 
policies and procedures for carrying out paragraph (1). The policies 
and procedures shall include a prohibition on applying assessments of 
surcharges to a Department of Defense activity more frequently than 
once every six months.
    (c) Waiver.--(1) The Secretary of Defense may waive the 
requirements of this section upon certifying to Congress, in writing, 
that the waiver is necessary to meet requirements associated with--
            (A) a contingency operation (as defined in section 
        101(a)(13) of title 10, United States Code); or
            (B) an operation of the Armed Forces that commenced before 
        October 1, 1998, and continues during fiscal year 1999.
    (2) The waiver authority under paragraph (1) may not be delegated 
to any official other than the Deputy Secretary of Defense.
    (d) Semiannual Report.--(1) The Under Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives--
            (A) not later than May 1, 1999, a report on the 
        administration of this section for the 6-month period ending on 
        March 31, 1999; and
            (B) not later than November 1, 1999, a report on the 
        administration of this section for the 6-month period ending on 
        September 30, 1999.
    (2) Each report shall include, for the 6-month period covered by 
the report, the following:
            (A) The profit and loss status of each working-capital fund 
        activity.
            (B) The actions taken by the Secretary of each military 
        department to use assessments of surcharges to correct for 
        unbudgeted losses and gains.

SEC. 342. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL FUNDS AND 
              CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS 
              OPERATIONS FUND.

    (a) Revision of Certain DBOF Provisions and Reenactment To Apply to 
Working-Capital Funds Generally.--Section 2208 of title 10, United 
States Code, is amended by adding at the end the following:
    ``(m) Capital Asset Subaccounts.--Amounts charged for depreciation 
of capital assets shall be credited to a separate capital asset 
subaccount established within a working-capital fund.
    ``(n) Separate Accounting, Reporting, and Auditing of Funds and 
Activities.--The Secretary of Defense, with respect to the working-
capital funds of each Defense Agency, and the Secretary of each 
military department, with respect to the working-capital funds of the 
military department, shall provide in accordance with this subsection 
for separate accounting, reporting, and auditing of funds and 
activities managed through the working-capital funds.
    ``(o) Charges for Goods and Services Provided Through the Fund.--
(1) Charges for goods and services provided for an activity through a 
working-capital fund shall include the following:
            ``(A) Amounts necessary to recover the full costs of the 
        goods and services provided for that activity.
            ``(B) Amounts for depreciation of capital assets, set in 
        accordance with generally accepted accounting principles.
    ``(2) Charges for goods and services provided through a working-
capital fund may not include the following:
            ``(A) Amounts necessary to recover the costs of a military 
        construction project (as defined in section 2801(b) of this 
        title), other than a minor construction project financed by the 
        fund pursuant to section 2805(c)(1) of this title.
            ``(B) Amounts necessary to cover costs incurred in 
        connection with the closure or realignment of a military 
        installation.
            ``(C) Amounts necessary to recover the costs of functions 
        designated by the Secretary of Defense as mission critical, 
        such as ammunition handling safety, and amounts for ancillary 
        tasks not directly related to the mission of the function or 
        activity managed through the fund.
    ``(p) Procedures For Accumulation of Funds.--The Secretary of 
Defense, with respect to each working-capital fund of a Defense Agency, 
and the Secretary of a military department, with respect to each 
working-capital fund of the military department, shall establish 
billing procedures to ensure that the balance in that working-capital 
fund does not exceed the amount necessary to provide for the working-
capital requirements of that fund, as determined by the Secretary 
concerned.
    ``(q) Annual Reports and Budget.--The Secretary of Defense, with 
respect to each working-capital fund of a Defense Agency, and the 
Secretary of each military department, with respect to each working-
capital fund of the military department, shall annually submit to 
Congress, at the same time that the President submits the budget under 
section 1105 of title 31, the following:
            ``(1) A detailed report that contains a statement of all 
        receipts and disbursements of the fund (including such a 
        statement for each subaccount of the fund) for the fiscal year 
        ending in the year preceding the year in which the budget is 
        submitted.
            ``(2) A detailed proposed budget for the operation of the 
        fund for the fiscal year for which the budget is submitted.
            ``(3) A comparison of the amounts actually expended for the 
        operation of the fund for the fiscal year referred to in 
        paragraph (1) with the amount proposed for the operation of the 
        fund for that fiscal year in the President's budget.
            ``(4) A report on the capital asset subaccount of the fund 
        that contains the following information:
                    ``(A) The opening balance of the subaccount as of 
                the beginning of the fiscal year in which the report is 
                submitted.
                    ``(B) The estimated amounts to be credited to the 
                subaccount in the fiscal year in which the report is 
                submitted.
                    ``(C) The estimated amounts of outlays to be paid 
                out of the subaccount in the fiscal year in which the 
                report is submitted.
                    ``(D) The estimated balance of the subaccount at 
                the end of the fiscal year in which the report is 
                submitted.
                    ``(E) A statement of how much of the estimated 
                balance at the end of the fiscal year in which the 
                report is submitted will be needed to pay outlays in 
                the immediately following fiscal year that are in 
                excess of the amount to be credited to the subaccount 
                in the immediately following fiscal year.''.
    (b) Repeal of Authority To Manage Through the Defense Business 
Operations Fund.--(1) Section 2216a of title 10, United States Code, is 
repealed.
    (2) The table of sections at the beginning of chapter 131 of such 
title is amended by striking out the item relating to section 2216a.

SEC. 343. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED COSTS OF 
              DISPOSALS IN WORKING-CAPITAL FUNDS.

    Section 2210(a) of title 10, United States Code, is amended to read 
as follows:
    ``(a)(1) A working-capital fund established pursuant to section 
2208 of this title may retain so much of the proceeds of disposals of 
property referred to in paragraph (2) as is necessary to recover the 
expenses incurred by the fund in disposing of such property. Proceeds 
from the sale or disposal of such property in excess of amounts 
necessary to recover the expenses may be credited to current applicable 
appropriations of the Department of Defense.
    ``(2) Paragraph (1) applies to disposals of supplies, material, 
equipment, and other personal property that were not financed by stock 
funds established under section 2208 of this title.''.

SEC. 344. BEST COMMERCIAL INVENTORY PRACTICES FOR MANAGEMENT OF 
              SECONDARY SUPPLY ITEMS.

    (a) Development and Submission of Schedule.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of each 
military department shall develop and submit to Congress a schedule for 
implementing within the military department, for secondary supply items 
managed by that military department, inventory practices identified by 
the Secretary as being the best commercial inventory practices for the 
acquisition and distribution of such supply items consistent with 
military requirements. The schedule shall provide for the 
implementation of such practices to be completed not later than five 
years after the date of the enactment of this Act.
    (b) Definition.--For purposes of this section, the term ``best 
commercial inventory practice'' includes cellular repair processes, use 
of third-party logistics providers, and any other practice that the 
Secretary determines will enable the military department to reduce 
inventory levels and holding costs while improving the responsiveness 
of the supply system to user needs.
    (c) GAO Reports on Military Department and Defense Logistics Agency 
Schedules.--(1) Not later than 240 days after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
evaluating the extent to which the Secretary of each military 
department has complied with the requirements of this section.
    (2) Not later than 18 months after the date on which the Director 
of the Defense Logistics Agency submits to Congress a schedule for 
implementing best commercial inventory practices under section 395 of 
the National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1718; 10 U.S.C. 2458 note), the Comptroller General 
shall submit to Congress an evaluation of the extent to which best 
commercial inventory practices are being implemented in the Defense 
Logistics Agency in accordance with that schedule.

SEC. 345. INCREASED USE OF SMART CARDS.

    (a) Funding for Increased Use Generally.--Of the funds available 
for the Navy for fiscal year 1999 for operation and maintenance, the 
Secretary of the Navy shall allocate sufficient amounts, up to 
$25,000,000, to making significant progress toward ensuring that smart 
cards having a multi-application, multi-technology automated reading 
capability are issued and used throughout the Navy and the Marine Corps 
for purposes for which such cards are suitable.
    (b) Deployment of Smart Cards.--(1) Not later than March 31, 1999, 
the Secretary of the Navy shall equip with smart card technology at 
least one carrier battle group, one carrier air wing, and one 
amphibious readiness group (including the Marine Corps units embarked 
on the vessels of such battle and readiness groups) in each of the 
United States Atlantic Command and the United States Pacific Command.
    (2) None of the funds appropriated pursuant to any authorization of 
appropriations in this Act may be expended after March 31, 1999, for 
the procurement of the Joint Uniformed Services Identification card 
for, or for the issuance of such card to, members of the Navy or the 
Marine Corps until the Secretary of the Navy certifies in writing to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives that the Secretary 
has completed the issuance of smart cards in accordance with paragraph 
(1).
    (c) Plan.--Not later than March 31, 1999, the Secretary of the Navy 
shall submit to the congressional defense committees a plan for 
equipping all operational naval units with smart card technology. The 
Secretary shall include in the plan estimates of the costs of, and the 
savings to be derived from, carrying out the plan.
    (d) Smart Card Defined.--In this section, the term ``smart card'' 
means a credit card size device that contains one or more integrated-
circuits.

SEC. 346. PUBLIC-PRIVATE COMPETITION IN THE PROVISION OF SUPPORT 
              SERVICES.

    (a) Sense of the Senate.--It is the sense of the Senate that the 
Secretary of Defense should take action to initiate public-private 
competitions pursuant to Office of Management and Budget Circular A-76 
for functions of the Department of Defense involving not fewer than a 
number of employees equivalent to 30,000 full-time employees for each 
of fiscal years 1999, 2000, 2001, 2002, 2003, and 2004.
    (b) Small Functions Qualified for a Waiver of the Notification and 
Reporting Requirements for Conversion to Contractor Performance.--(1) 
Section 2461(d) of title 10, United States Code, is amended by striking 
out ``20 or fewer'' and inserting in lieu thereof ``50 or fewer''.
    (2) Notwithstanding any other provision of law, no study, 
notification, or report may be required pursuant to subsection (a), 
(b), or (c) of section 2461 of title 10, United States Code, or Office 
of Management and Budget Circular A-76 for functions that are being 
performed by 50 or fewer Department of Defense civilian employees.
    (c) Best Overall Value to the Taxpayer.--Section 2462(a) of title 
10, United States Code, is amended by striking out ``at a cost that is 
lower'' and all that follows through the period at the end and 
inserting in lieu thereof: ``at a lower cost than the cost at which the 
Department can provide the same supply or service or at a better 
overall value than the value that the Department can provide for the 
same supply or service. Each determination regarding relative cost or 
relative overall value shall be based on an objective evaluation of 
cost and performance-related factors and shall include the 
consideration of any cost differential required by law, Executive 
order, or regulation.''.
    (d) Effective Date.--Subsections (b) and (c), and the amendments 
made by such subsections, shall take effect on January 1, 2001.

SEC. 347. CONDITION FOR PROVIDING FINANCIAL ASSISTANCE FOR SUPPORT OF 
              ADDITIONAL DUTIES ASSIGNED TO THE ARMY NATIONAL GUARD.

    (a) Competitive Source Selection.--Section 113(b) of title 32, 
United States Code, is amended to read as follows:
    ``(b) Covered Activities.--(1) Except as provided in paragraph (2), 
financial assistance may be provided for the performance of an activity 
by the Army National Guard under subsection (a) only if--
            ``(A) the activity is carried out in the performance of a 
        responsibility of the Secretary of the Army under paragraph 
        (6), (10), or (11) of section 3013(b) of title 10; and
            ``(B) the Army National Guard was selected to perform the 
        activity under competitive procedures that permit all 
        responsible private-sector sources to submit offers and be 
        considered for selection to perform the activity on the basis 
        of the offers.
    ``(2) Paragraph (1)(B) does not apply to an activity that, on the 
date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1999, was performed for the Federal Government by employees 
of the Federal Government or employees of a State.''.
    (b) Prospective Applicability.--Subparagraph (B) of section 
113(b)(1) of title 32, United States Code (as amended by subsection (a) 
of this section), does not apply to--
            (1) financial assistance provided under that section before 
        October 1, 1998; or
            (2) financial assistance for an activity that, on or before 
        May 8, 1998, the Secretary of the Army identified in writing as 
        being under consideration for supporting with financial 
        assistance under such section.

SEC. 348. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD, 
              FORT HOOD, TEXAS.

    Section 319 of the National Defense Authorization Act for Fiscal 
Year 1987 (Public Law 99-661; 100 Stat. 3855), relating to a 
prohibition on the joint military-civilian use of Robert Gray Army 
Airfield, Fort Hood, Texas, is repealed.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1999, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 372,696.
            (3) The Marine Corps, 172,200.
            (4) The Air Force, 370,882.

SEC. 402. LIMITED EXCLUSIONS OF JOINT DUTY OFFICERS FROM LIMITATIONS ON 
              NUMBER OF GENERAL AND FLAG OFFICERS.

    (a) One Additional Exemption From Percentage Limitation on Number 
of Lieutenant Generals and Vice Admirals.--Section 525(b)(4)(B) of 
title 10, United States Code, is amended by striking out ``six'' and 
inserting in lieu thereof ``seven''.
    (b) Extension of Authority To Exclude Up to 12 Joint Duty Officers 
From Limitation on Authorized General and Flag Officer Strength.--
Section 526(b)(2) of such title is amended by striking out ``October 1, 
1998'' and inserting in lieu thereof ``October 1, 2002''.

SEC. 403. LIMITATION ON DAILY AVERAGE OF PERSONNEL ON ACTIVE DUTY IN 
              GRADES E-8 AND E-9.

    (a) Fiscal Year Basis for Application of Limitation.--The first 
sentence of section 517(a) of title 10, United States Code, is 
amended--
            (1) by striking out ``a calendar year'' and inserting in 
        lieu thereof ``a fiscal year''; and
            (2) by striking out ``January 1 of that year'' and 
        inserting in lieu thereof ``the first day of that fiscal 
        year''.
    (b) Correction of Cross Reference.--Such sentence is further 
amended by striking out ``Except as provided in section 307 of title 
37, the'' and inserting in lieu thereof ``The''.

SEC. 404. REPEAL OF PERMANENT END STRENGTH REQUIREMENT FOR SUPPORT OF 
              TWO MAJOR REGIONAL CONTINGENCIES.

    (a) Repeal.--Section 691 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 39 of such title is amended by striking out the item relating 
to section 691.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 1999, as follows:
            (1) The Army National Guard of the United States, 357,000.
            (2) The Army Reserve, 208,000.
            (3) The Naval Reserve, 90,843.
            (4) The Marine Corps Reserve, 40,018.
            (5) The Air National Guard of the United States, 106,991.
            (6) The Air Force Reserve, 74,242.
            (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary an end 
strength authorized by subsection (a) by not more than 2 percent.
    (c) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year, and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
1999, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 21,763.
            (2) The Army Reserve, 11,804.
            (3) The Naval Reserve, 15,590.
            (4) The Marine Corps Reserve, 2,362.
            (5) The Air National Guard of the United States, 10,930.
            (6) The Air Force Reserve, 991.

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

    The reserve components of the Army and the Air Force are authorized 
strengths for military technicians (dual status) as of September 30, 
1999, as follows:
            (1) For the Army Reserve, 5,205.
            (2) For the Army National Guard of the United States, 
        22,179.
            (3) For the Air Force Reserve, 9,761.
            (4) For the Air National Guard of the United States, 
        22,408.

SEC. 414. EXCLUSION OF ADDITIONAL RESERVE COMPONENT GENERAL AND FLAG 
              OFFICERS FROM LIMITATION ON NUMBER OF GENERAL AND FLAG 
              OFFICERS WHO MAY SERVE ON ACTIVE DUTY.

    Section 526(d) of title 10, United States Code, is amended to read 
as follows:
    ``(d) Exclusion of Certain Reserve Officers.--(1) Subject to 
paragraph (2), the limitations of this section do not apply to the 
following reserve component general or flag officers:
            ``(A) A general or flag officer who is on active duty for 
        training.
            ``(B) A general or flag officer who is on active duty under 
        a call or order specifying a period of less than 180 days.
            ``(C) A general or flag officer who is on active duty under 
        a call or order specifying a period of more than 179 days.
    ``(2) The number of general or flag officers of an armed force that 
are excluded from the applicability of the limitations of this section 
under paragraph (1)(C) at any one time may not exceed the number equal 
to three percent of the number specified for that armed force under 
subsection (a).''.

SEC. 415. INCREASE IN NUMBERS OF MEMBERS IN CERTAIN GRADES AUTHORIZED 
              TO BE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    (a) Officers.--The table in section 12011(a) of title 10, United 
States Code, is amended to read as follows:
      

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     791      140  
Lieutenant Colonel or Commander.....    1,524     520     713       90  
Colonel or Navy Captain.............     438      188     297     30''. 
------------------------------------------------------------------------

    (b) Senior Enlisted Members.--The table in section 12012(a) of 
title 10, United States Code, is amended to read as follows:
      

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
E-9.................................     623     202      395       20  
E-8.................................   2,585     429      997     94''. 
------------------------------------------------------------------------

SEC. 416. CONSOLIDATION OF STRENGTH AUTHORIZATIONS FOR ACTIVE STATUS 
              NAVAL RESERVE FLAG OFFICERS OF THE NAVY MEDICAL 
              DEPARTMENT STAFF CORPS.

    Section 12004(c) of subtitle E of title 10, United States Code, is 
amended--
            (1) in the table in paragraph (1)--
                    (A) by striking out the item relating to the 
                Medical Corps and inserting in lieu thereof the 
                following:

    ``Medical Department staff corps..............                9''; 
                and
                    (B) by striking out the items relating to the 
                Dental Corps, the Nurse Corps, and the Medical Service 
                Corps; and
            (2) by adding at the end the following:
    ``(4)(A) For the purposes of paragraph (1), the Medical Department 
staff corps referred to in the table are as follows:
            ``(i) The Medical Corps.
            ``(ii) The Dental Corps.
            ``(iii) The Nurse Corps.
            ``(iv) The Medical Service Corps.
    ``(B) Each of the Medical Department staff corps is authorized one 
rear admiral (lower half) within the strength authorization distributed 
to the Medical Department staff corps under paragraph (1). The 
Secretary of the Navy shall distribute the remainder of the strength 
authorization for the Medical Department staff corps under that 
paragraph among those staff corps as the Secretary determines 
appropriate to meet the needs of the Navy.''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1999 a total of 
$70,434,386,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1999.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. STREAMLINED SELECTIVE RETENTION PROCESS FOR REGULAR OFFICERS.

    (a) Repeal of Requirement for Duplicative Board.--Section 1183 of 
title 10, United States Code, is repealed.
    (b) Conforming Amendments.--(1) Section 1182(c) of such title is 
amended by striking out ``send the record of proceedings to a board of 
review convened under section 1183 of this title'' and inserting in 
lieu thereof ``recommend to the Secretary concerned that the officer 
not be retained on active duty''.
    (2) Section 1184 of such title is amended by striking out ``board 
of review convened under section 1183 of this title'' and inserting in 
lieu thereof ``board of inquiry convened under section 1182 of this 
title''.
    (c) Clerical Amendments.--(1) The heading for section 1184 of such 
title is amended by striking out ``review'' and inserting in lieu 
thereof ``inquiry''.
    (2) The table of sections at the beginning of chapter 60 of such 
title is amended by striking out the items relating to sections 1183 
and 1184 and inserting in lieu thereof the following:

``1184. Removal of officer: action by Secretary upon recommendation of 
                            board of inquiry.''.

SEC. 502. PERMANENT APPLICABILITY OF LIMITATIONS ON YEARS OF ACTIVE 
              NAVAL SERVICE OF NAVY LIMITED DUTY OFFICERS IN GRADES OF 
              COMMANDER AND CAPTAIN.

    (a) Commanders.--Section 633 of title 10, United States Code, is 
amended--
            (1) by striking out ``Except an officer'' and all that 
        follows through ``or section 6383 of this title applies'' and 
        inserting in lieu thereof ``Except an officer of the Navy or 
        Marine Corps who is an officer designated for limited duty to 
        whom section 5596(e) or 6383 of this title applies''; and
            (2) by striking out the second sentence.
    (b) Captains.--Section 634 of such title is amended--
            (1) by inserting ``an officer of the Navy who is designated 
        for limited duty to whom section 6383(a)(4) of this title 
        applies and except'' in the first sentence after ``Except''; 
        and
            (2) by striking out the second sentence.
    (c) Years of Active Naval Service.--Section 6383(a) of such title 
is amended by striking out paragraph (5).
    (d) Limitations on Selective Retentions.--Section 6383(k) of such 
title is amended by striking out the last sentence.

SEC. 503. INVOLUNTARY SEPARATION PAY DENIED FOR OFFICER DISCHARGED FOR 
              FAILURE OF SELECTION FOR PROMOTION REQUESTED BY THE 
              OFFICER.

    (a) Ineligibility for Separation Pay.--Section 1174(a) of title 10, 
United States Code, is amended by adding at the end the following:
    ``(3) Notwithstanding paragraphs (1) and (2), an officer discharged 
for twice failing of selection for promotion to the next higher grade 
is not entitled to separation pay under this section if the officer 
submitted a request not to be selected for promotion to any selection 
board that considered and did not select the officer for promotion to 
that grade.''.
    (b) Report of Selection Board To Name Officers Requesting 
Nonselection.--Section 617 of such title is amended by adding at the 
end the following:
    ``(c) A selection board convened under section 611(a) of this title 
shall include in its report to the Secretary concerned the name of any 
regular officer considered and not recommended by the board for 
promotion who submitted to the board a request not to be selected for 
promotion.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the date of the enactment of this Act and 
shall apply with respect to selection boards convened under section 
611(a) of title 10, United States Code, on or after that date.

SEC. 504. TERM OF OFFICE OF THE CHIEF OF THE AIR FORCE NURSE CORPS.

    Section 8069(b) of title 10, United States Code, is amended in the 
third sentence by striking out ``and'' and inserting in lieu thereof 
the following: ``except that the Secretary may increase the limit to 
four years in any case in which the Secretary determines that special 
circumstances justify a longer term of service in the position. An 
officer appointed as Chief''.

                 Subtitle B--Reserve Component Matters

SEC. 511. SERVICE REQUIRED FOR RETIREMENT OF NATIONAL GUARD OFFICER IN 
              HIGHER GRADE.

    (a) Revision of Requirement.--Subparagraph (E) of section 
1370(d)(3) of title 10, United States Code, is amended to read as 
follows:
    ``(E) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been found qualified 
for Federal recognition in a higher grade by a board under section 307 
of title 32, serves in a position for which that grade is the minimum 
authorized grade and is appointed as a reserve officer in that grade 
may be credited for the purposes of subparagraph (A) as having served 
in that grade. The period of the service for which credit is afforded 
under the preceding sentence may only be the period for which the 
person served in the position after the Senate provides advice and 
consent for the appointment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply 
with respect to appointments to higher grades that take effect after 
that date.

SEC. 512. REDUCED TIME-IN-GRADE REQUIREMENT FOR RESERVE GENERAL AND 
              FLAG OFFICERS INVOLUNTARILY TRANSFERRED FROM ACTIVE 
              STATUS.

    (a) Minimum Service in Active Status.--Section 1370(d)(3) of title 
10, United States Code, as amended by section 511, is further amended 
by adding at the end the following new subparagraph:
    ``(F) A person covered by subparagraph (A) who has completed at 
least six months of satisfactory service in a grade above colonel or 
(in the case of the Navy) captain and, while serving in an active 
status in such grade, is involuntarily transferred (other than for 
cause) from active status may be credited with satisfactory service in 
the grade in which serving at the time of such transfer, 
notwithstanding failure of the person to complete three years of 
service in that grade.''.
    (b) Effective Date.--Subparagraph (F) of such section, as added by 
subsection (a), shall take effect on the date of the enactment of this 
Act and shall apply with respect to transfers referred to in such 
subparagraph that are made on or after that date.

SEC. 513. ELIGIBILITY OF ARMY AND AIR FORCE RESERVE BRIGADIER GENERALS 
              TO BE CONSIDERED FOR PROMOTION WHILE ON INACTIVE STATUS 
              LIST.

    (a) Waiver of Active Status Requirement.--Chapter 1405 of title 10, 
United States Code, is amended by adding at the end the following:
``Sec. 14318. Officers on inactive status list: eligibility of Army and 
              Air Force reserve brigadier generals for consideration 
              for promotion
    ``(a) Waiver of One-Year Active Status Rule.--The Secretary 
concerned may waive the eligibility requirements in section 14301(a) of 
this title (and the requirement in section 140101(a) of this title that 
an officer be on a reserve active-status list) in the case of a general 
officer referred to in subsection (b) and authorize the officer to be 
considered for promotion under this chapter by a promotion board 
convened under section 14101(a) of this title.
    ``(b) Applicability.--Subsection (a) applies to a reserve officer 
of the Army or Air Force who--
            ``(1) is on the inactive status list of the Standby Reserve 
        in the grade of brigadier general pursuant to a transfer under 
        section 14314(a)(2) of this title;
            ``(2) has been on the inactive status list pursuant to the 
        transfer for less than one year as of the date of the convening 
        of the promotion board that is to consider the officer for 
        promotion; and
            ``(3) during the one-year period ending on the date of the 
        transfer to the inactive status list, continuously performed 
        service on either the reserve active-status list, the active-
        duty list, or a combination of both lists.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``14318. Officers on inactive status list: eligibility of Army and Air 
                            Force reserve brigadier generals for 
                            consideration for promotion.''.

SEC. 514. COMPOSITION OF SELECTIVE EARLY RETIREMENT BOARDS FOR REAR 
              ADMIRALS OF THE NAVAL RESERVE AND MAJOR GENERALS OF THE 
              MARINE CORPS RESERVE.

    Section 14705(b) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b) Boards.--''; and
            (2) by adding at the end the following:
    ``(2) In the case of a board convened to consider the early 
retirement of officers in the grade of rear admiral in the Naval 
Reserve or major general in the Marine Corps Reserve, the Secretary of 
the Navy may prescribe the composition of the board notwithstanding 
section 14102(b) of this title. In doing so, however, the Secretary 
shall ensure that each regular commissioned officer of the Navy or the 
Marine Corps appointed to the board holds a permanent grade higher than 
the grade of the officers under consideration by the board and that at 
least one member of the board is a reserve officer who holds the grade 
of rear admiral or major general.''.

SEC. 515. USE OF RESERVES FOR EMERGENCIES INVOLVING WEAPONS OF MASS 
              DESTRUCTION.

    (a) Order to Active Duty.--(1) Section 12304 of title 10, United 
States Code, is amended--
            (A) in subsection (a), by inserting ``or is necessary to 
        provide assistance referred to in subsection (b)'' after ``to 
        augment the active forces for any operational mission''.
            (B) in subsection (b)--
                    (i) by striking out ``(b)'' and inserting in lieu 
                thereof ``(c) Limitations.--(1)''; and
                    (ii) by striking out ``, or to provide'' and 
                inserting in lieu thereof ``or, except as provided in 
                subsection (b), to provide'';
            (C) by redesignating subsection (c) as paragraph (2); and
            (D) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Support for Responses to Certain Emergencies.--The authority 
under subsection (a) includes authority to order a unit or member to 
active duty to provide assistance in responding to an emergency 
involving a use or threatened use of a weapon of mass destruction.''.
    (2) Subsection (i) of such section is amended to read as follows:
    ``(i) Definitions.--For purposes of this section:
            ``(1) The term `Individual Ready Reserve mobilization 
        category' means, in the case of any reserve component, the 
        category of the Individual Ready Reserve described in section 
        10144(b) of this title.
            ``(2) The term `weapon of mass destruction' has the meaning 
        given such term in section 1402 of the Defense Against Weapons 
        of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).''.
    (3) Such section is further amended--
            (A) in subsection (a), by inserting ``Authority.--'' after 
        ``(a)'';
            (B) in subsection (d), by inserting ``Exclusion From 
        Strength Limitations.--'' after ``(d)'';
            (C) in subsection (e), by inserting ``Policies and 
        Procedures.--'' after ``(e)'';
            (D) in subsection (f), by inserting ``Notification of 
        Congress.--'' after ``(f)'';
            (E) in subsection (g), by inserting ``Termination of 
        Duty.--'' after ``(g)''; and
            (F) in subsection (h), by inserting ``Relationship to War 
        Powers Resolution.--'' after ``(h)''.
    (b) Use of Active Guard and Reserve Personnel.--Section 12310 of 
title 10, United States Code, is amended by adding at the end the 
following:
    ``(c)(1) A Reserve on active duty as described in subsection (a), 
or a Reserve who is a member of the National Guard serving on full-time 
National Guard duty under section 502(f) of title 32 in connection with 
functions referred to in subsection (a), may perform any duties in 
support of emergency preparedness programs to prepare for or to respond 
to any emergency involving the use of a weapon of mass destruction (as 
defined in section 1402 of the Defense Against Weapons of Mass 
Destruction Act of 1996 (50 U.S.C. 2302(1))).
    ``(2) The costs of the pay, allowances, clothing, subsistence, 
gratuities, travel, and related expenses for a Reserve performing 
duties under the authority of paragraph (1) shall be paid from the 
appropriation that is available to pay such costs for other members of 
the reserve component of that Reserve who are performing duties as 
described in subsection (a).''.

                       Subtitle C--Other Matters

 SEC. 521. ANNUAL MANPOWER REQUIREMENTS REPORT.

    Section 115a(a) of title 10, United States Code, is amended by 
striking out the first sentence and inserting in lieu thereof the 
following: ``The Secretary of Defense shall submit an annual manpower 
requirements report to Congress each year, not later than 45 days after 
the date on which the President submits the budget for the next fiscal 
year to Congress under section 1105(a) of title 31.''.

SEC. 522. FOUR-YEAR EXTENSION OF CERTAIN FORCE REDUCTION TRANSITION 
              PERIOD MANAGEMENT AND BENEFITS AUTHORITIES.

    (a) Active Force Early Retirement.--Section 4403(i) of the National 
Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 note) is 
amended by striking out ``October 1, 1999'' and inserting in lieu 
thereof ``October 1, 2003''.
    (b) Special Separation Benefits Program.--Section 1174a(h) of title 
10, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2003''.
    (c) Voluntary Separation Incentive.--Section 1175(d)(3) of such 
title is amended by striking out ``September 30, 1999'' and inserting 
in lieu thereof ``September 30, 2003''.
    (d) Selective Early Retirement Boards.--Section 638a(a) of such 
title, is amended by striking out ``nine-year period'' and inserting in 
lieu thereof ``13-year period''.
    (e) Retired Grade.--Section 1370(a)(2)(A) of such title is amended 
by striking out ``nine-year period'' and inserting in lieu thereof 
``13-year period''.
    (f) Minimum Commissioned Service for Voluntary Retirement.--
Sections 3911(b), 6323(a)(2), and 8911(b) of such title are amended by 
striking out ``nine-year period'' and inserting in lieu thereof ``13-
year period''.
    (g) Travel, Transportation, and Storage Benefits.--(1) Subsections 
(c)(1)(C) and (f)(2)(B)(v) of section 404 of title 37, United States 
Code, and subsections (a)(2)(B)(v) and (g)(1)(C) of section 406 of such 
title are amended by striking out ``nine-year period'' and inserting in 
lieu thereof ``13-year period''.
    (2) Section 503(c)(1) of the National Defense Authorization Act for 
Fiscal Year 1991 (37 U.S.C. 406 note) is amended by striking out 
``nine-year period'' and inserting in lieu thereof ``13-year period''.
    (h) Educational Leave for Public and Community Service.--Section 
4463(f) of the National Defense Authorization Act for Fiscal Year 1993 
(10 U.S.C. 1143a note) is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2003''.
    (i) Health Benefits.--Section 1145 of title 10, United States Code, 
is amended--
            (1) in subsections (a)(1) and (c)(1), by striking out 
        ``nine-year period'' and inserting in lieu thereof ``13-year 
        period''; and
            (2) in subsection (e), by striking out ``five-year period'' 
        and inserting in lieu thereof ``nine-year period''.
    (j) Commissary and Exchange Benefits.--Section 1146 of such title 
is amended--
            (1) by striking out ``nine-year period'' in the first 
        sentence and inserting in lieu thereof ``13-year period''; and
            (2) by striking out ``five-year period'' in the second 
        sentence and inserting in lieu thereof ``nine-year period''.
    (k) Use of Military Housing.--Section 1147(a) of such title 10 is 
amended--
            (1) in paragraph (1), by striking out ``nine-year period'' 
        and inserting in lieu thereof ``13-year period''; and
            (2) in paragraph (2), by striking out ``five-year period'' 
        and inserting in lieu thereof ``nine-year period''.
    (l) Continued Enrollment of Dependents in Defense Dependents' 
Education System.--Section 1407(c)(1) of the Defense Dependents' 
Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking out 
``nine-year period'' and inserting in lieu thereof ``13-year period''.
    (m) Guard and Reserve Transition Initiatives.--Title XLIV of the 
National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 
12681 note) is amended--
            (1) in section 4411, by striking out ``September 30, 1999'' 
        and inserting in lieu thereof ``September 30, 2003''; and
            (2) in section 4416(b)(1), by striking out ``October 1, 
        1999'' and inserting in lieu thereof ``October 1, 2003''.
    (n) Retired Pay for Nonregular Service-Age and Service 
Requirements.--(1) Section 12731(f) of title 10, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``September 30, 2003''.
    (2) Subsections (a)(1)(B) and (b) of section 12731a of such title 
are amended by striking out ``October 1, 1999'' and inserting in lieu 
thereof ``October 1, 2003''.
    (o) Reduction of Time-in-Grade Requirement for Retention of Grade 
Upon Voluntary Retirement.--Section 1370(d) of such title is amended by 
adding at the end the following new paragraph:
    ``(5) The Secretary of Defense may authorize the Secretary of a 
military department to reduce the three-year period required by 
paragraph (3)(A) to a period not less than two years in the case of 
retirements effective during the period beginning on the date of the 
enactment of the National Defense Authorization Act for Fiscal Year 
1999 and ending September 30, 2003. The number of the reserved 
commissioned officers of an armed force in the same grade for whom a 
reduction is made during any fiscal year in the period of service-in-
grade otherwise required under this paragraph may not exceed the number 
equal to two percent of the strength authorized for that fiscal year 
for reserve commissioned officers of that armed force in an active 
status in that grade.''.
    (p) Affiliation With Guard and Reserve Units; Waiver of Certain 
Limitations.--Section 1150(a) of such title is amended by striking out 
``nine-year period'' and inserting in lieu thereof ``13-year period''.
    (q) Time for Use of Montgomery G.I. Bill Entitlement.--Section 
16133(b)(1)(B) of such title is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``September 30, 2003''.

SEC. 523. CONTINUATION OF ELIGIBILITY FOR VOLUNTARY SEPARATION 
              INCENTIVE AFTER INVOLUNTARY LOSS OF MEMBERSHIP IN READY 
              OR STANDBY RESERVE.

    (a) Period of Eligibility.--Subsection (a) of section 1175 of title 
10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking out ``, for the period of time the member 
        is serving in a reserve component''; and
            (3) by adding at the end the following:
    ``(2)(A) Except as provided in subparagraph (B), a financial 
incentive provided a member under this section shall be paid for the 
period equal to twice the number of years of service of the member, 
computed as provided in subsection (e)(5).
    ``(B) If, before the expiration of the period otherwise applicable 
under subparagraph (A) to a member receiving a financial incentive 
under this section, the member is separated from a reserve component or 
is transferred to the Retired Reserve, the period for payment of a 
financial incentive to the member under this section shall terminate on 
the date of the separation or transfer unless--
            ``(i) the separation or transfer is required by reason of 
        the age or number of years of service of the member;
            ``(ii) the separation or transfer is required by reason of 
        the failure of selection for promotion or the medical 
        disqualification of the member, except in a case in which the 
        Secretary of Defense or the Secretary of Transportation 
        determines that the basis for the separation or transfer is a 
        result of a deliberate action taken by the member with the 
        intent to avoid retention in the Ready Reserve or Standby 
        Reserve; or
            ``(iii) in the case of a separation, the member is 
        separated from the reserve component for appointment or 
        enlistment in or transfer to another reserve component of an 
        armed force for service in the Ready Reserve or Standby Reserve 
        of that armed force.''.
    (b) Repeal of Superseded Provision.--Subsection (e)(1) of such 
section is amended by striking out the second sentence.

SEC. 524. REPEAL OF LIMITATIONS ON AUTHORITY TO SET RATES AND WAIVE 
              REQUIREMENT FOR REIMBURSEMENT OF EXPENSES INCURRED FOR 
              INSTRUCTION AT SERVICE ACADEMIES OF PERSONS FROM FOREIGN 
              COUNTRIES.

    (a) United States Military Academy.--Section 4344(b) of title 10, 
United States Code, is amended--
            (1) in the second sentence of paragraph (2), by striking 
        out ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, to a 
        cadet appointed from the United States''; and
            (2) by striking out paragraph (3).
    (b) Naval Academy.--Section 6957(b) of such title is amended--
            (1) in the second sentence of paragraph (2), by striking 
        out ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, to a 
        midshipman appointed from the United States''; and
            (2) by striking out paragraph (3).
    (c) Air Force Academy.--Section 9344(b) of such title is amended--
            (1) in the second sentence of paragraph (2), by striking 
        out ``, except that the reimbursement rates may not be less 
        than the cost to the United States of providing such 
        instruction, including pay, allowances, and emoluments, to a 
        cadet appointed from the United States''; and
            (2) by striking out paragraph (3).

SEC. 525. REPEAL OF RESTRICTION ON CIVILIAN EMPLOYMENT OF ENLISTED 
              MEMBERS.

    (a) Repeal.--Section 974 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 49 of such title is amended by striking out the item relating 
to section 974.

SEC. 526. EXTENSION OF REPORTING DATES FOR COMMISSION ON MILITARY 
              TRAINING AND GENDER-RELATED ISSUES.

    (a) Interim Report.--Subsection (e)(1) of section 562 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1754; 10 U.S.C. 113 note) is amended by striking out 
``April 15, 1998'' and inserting in lieu thereof ``October 15, 1998''.
    (b) Final Report.--Subsection (e)(2) of such section is amended by 
striking out ``September 16, 1998'' and inserting in lieu thereof 
``March 15, 1999''.

SEC. 527. MORATORIUM ON CHANGES OF GENDER-RELATED POLICIES AND 
              PRACTICES PENDING COMPLETION OF THE WORK OF THE 
              COMMISSION ON MILITARY TRAINING AND GENDER-RELATED 
              ISSUES.

    Notwithstanding any other provision of law, no official of the 
Department of Defense may implement any change of policy or official 
practice in the department regarding separation or integration of 
members of the Armed Forces on the basis of gender that is within the 
responsibility of the Commission on Military Training and Gender-
Related Issues to review under subtitle F of title V of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1750), before the date on which the commission terminates under 
section 564 of such Act.

SEC. 528. TRANSITIONAL COMPENSATION FOR ABUSED DEPENDENT CHILDREN NOT 
              RESIDING WITH THE SPOUSE OR FORMER SPOUSE OF A MEMBER 
              CONVICTED OF DEPENDENT ABUSE.

    (a) Entitlement Not Conditioned on Forfeiture of Spousal 
Compensation.--Subsection (d) of section 1059 of title 10, United 
States Code, is amended--
            (1) by striking out paragraph (1) and inserting in lieu 
        thereof the following:
            ``(1) If the individual was married at the time of the 
        commission of the dependent-abuse offense resulting in the 
        separation, the spouse or former spouse to whom the individual 
        was married at that time shall be paid such compensation, 
        including an amount (determined under subsection (f)(2)) for 
        each, if any, dependent child of the individual described in 
        subsection (b) who resides in the same household as that spouse 
        or former spouse.'';
            (2) in paragraph (2)--
                    (A) by striking out ``(but for subsection (g)) 
                would be eligible'' and inserting in lieu thereof ``is 
                or, but for subsection (g), would be eligible''; and
                    (B) by striking out ``such compensation'' and 
                inserting in lieu thereof ``compensation under this 
                section''; and
            (3) in paragraph (4), by striking out ``For purposes of 
        paragraphs (2) and (3)'' and inserting in lieu thereof ``For 
        purposes of this subsection''.
    (b) Amount of Payment.--Subsection (f)(2) of such section is 
amended by striking out ``has custody of a dependent child or children 
of the member'' and inserting in lieu thereof ``has custody of a 
dependent child of the member who resides in the same household as that 
spouse or former spouse''.
    (c) Prospective Applicability.--No benefits shall accrue by reason 
of the amendments made by this section for any month that begins before 
the date of the enactment of this Act.

SEC. 529. PILOT PROGRAM FOR TREATING GED RECIPIENTS AS HIGH SCHOOL 
              GRADUATES FOR DETERMINATIONS OF ELIGIBILITY FOR ENLISTING 
              IN THE ARMED FORCES.

    (a) Program Required.--The Secretary of Defense shall establish a 
pilot program to assess whether the Armed Forces could better meet 
recruiting requirements by treating GED recipients as having graduated 
from high school with a high school diploma for the purpose of 
determining the eligibility of those persons to enlist in the Armed 
Forces. The Secretary of each military department shall administer the 
pilot program for the armed force or armed forces under the 
jurisdiction of the Secretary.
    (b) Eligible GED Recipients.--(1) Under the pilot program, a person 
shall be treated as having graduated from high school with a high 
school diploma for the purpose described in subsection (a) if the 
person--
            (A) has completed a general education development program 
        while participating in the National Guard Challenge Program; 
        and
            (B) is a GED recipient.
    (2) For the purposes of this section, a person is a GED recipient 
if the person, after completing a general education development 
program, has obtained certification of high school equivalency by 
meeting State requirements and passing a State approved exam that is 
administered for the purpose of providing an appraisal of the person's 
achievement or performance in the broad subject matter areas usually 
required for high school graduates.
    (c) Annual Limit on Number.--Not more than 1,250 persons enlisted 
by an armed force in any fiscal year may be treated under the pilot 
program as having graduated from high school with a high school 
diploma.
    (d) Period for Pilot Program.--The pilot program shall be in effect 
for five fiscal years beginning on October 1, 1998.
    (e) Report.--(1) Not later than February 1, 2004, the Secretary of 
Defense shall submit a report on the pilot program to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives.
    (2)(A) The report shall include the assessment of the Secretary of 
Defense, and any assessment of any of the Secretaries of the military 
departments, regarding the value of, and any necessity for, authority 
to treat GED recipients as having graduated from high school with a 
high school diploma for the purpose of determining the eligibility of 
those persons to enlist in the Armed Forces.
    (B) The Secretary shall also set forth in the report, by armed 
force for each fiscal year of the pilot program, a comparison of the 
performance of the persons who enlisted in that armed force during the 
fiscal year as GED recipients treated under the pilot program as having 
graduated from high school with a high school diploma with the 
performance of the persons who enlisted in that armed force during the 
same fiscal year after having graduated from high school with a high 
school diploma, with respect to the following:
            (i) Attrition.
            (ii) Discipline.
            (iii) Adaptability to military life.
            (iv) Aptitude for mastering the skills necessary for 
        technical specialties.
            (v) Reenlistment rates.
    (f) Reference to National Guard Challenge Program.--The National 
Guard Challenge Program referred to in this section is a program 
conducted under section 509 of title 32, United States Code.
    (g) State Defined.--In this section, the term ``State'' has the 
meaning given that term in section 509(l)(1) of title 32, United States 
Code.

SEC. 530. WAIVER OF TIME LIMITATIONS FOR AWARD OF DISTINGUISHED FLYING 
              CROSS IN CERTAIN CASES.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of the 
Distinguished Flying Cross for service described in subsection (b).
    (b) Applicability of Waiver.--Subsection (a) applies to award of 
the Distinguished Flying Cross for service during World War II or Korea 
(including multiple awards to the same individual) in the case of each 
individual (not covered by section 573(d) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1757)) concerning whom the Secretary of the Navy (or an officer of the 
Navy acting on behalf of the Secretary) submitted to the Committee on 
National Security of the House of Representatives and the Committee on 
Armed Services of the Senate, before the date of the enactment of this 
Act, a notice as provided in section 1130(b) of title 10, United States 
Code, that the award of the Distinguished Flying Cross to that 
individual is warranted and that a waiver of time restrictions 
prescribed by law for recommendation for such award is recommended.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1999.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services by section 
203(a) of such title to become effective during fiscal year 1999 shall 
not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 1999, the rates 
of basic pay of members of the uniformed services are increased by 3.1 
percent.

SEC. 602. RATE OF PAY FOR CADETS AND MIDSHIPMEN AT THE SERVICE 
              ACADEMIES.

    (a) Increased Rate.--Section 203(c) of title 37, United States 
Code, is amended by striking out ``$558.04'' and inserting in lieu 
thereof ``$600.00''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1999.

SEC. 603. PAYMENTS FOR MOVEMENTS OF HOUSEHOLD GOODS ARRANGED BY 
              MEMBERS.

    (a) Monetary Allowance Authorized.--Subsection (b)(1) of section 
406 of title 37, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) by striking out ``, or reimbursement 
                therefor,''; and
                    (B) by inserting after the second sentence the 
                following: ``Alternatively, a member may be paid 
                reimbursement or a monetary allowance under 
                subparagraph (F).''; and
            (2) by adding at the end the following:
    ``(F) A member entitled to transportation of baggage and household 
effects under subparagraph (A) may, as an alternative to the provision 
of transportation, be paid reimbursement or, at the member's request, a 
monetary allowance in advance for the cost of transportation of the 
baggage and household effects. The monetary allowance may be paid only 
if the amount of the allowance does not exceed the cost that would be 
incurred by the Government under subparagraph (A) for the 
transportation of the baggage and household effects. Appropriations 
available to the Department of Defense, the Department of 
Transportation, and the Department of Health and Human Services for 
providing transportation of baggage or household effects of members of 
the uniformed services shall be available to pay a reimbursement or 
monetary allowance under this subparagraph. The Secretary concerned may 
prescribe the manner in which the risk of liability for damage, 
destruction, or loss of baggage or household effects arranged, packed, 
crated, or loaded by a member is allocated among the member, the United 
States, and any contractor when a reimbursement or monetary allowance 
is elected under this subparagraph.''.
    (b) Repeal of Superseded Provision.--Such section is further 
amended by striking out subsection (j).

SEC. 604. LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY CADETS AND 
              MIDSHIPMEN.

    (a) Authority.--Section 702 of title 10, United States Code, is 
amended--
            (1) by designating the second sentence of subsection (b) as 
        subsection (d);
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Leave Without Pay.--(1) Under regulations prescribed under 
subsection (d), the Superintendent of the United States Military 
Academy, the United States Naval Academy, the United States Air Force 
Academy, or the United States Coast Guard Academy may order a cadet or 
midshipman of the Academy to be placed on leave involuntarily for any 
period during which the cadet or midshipman is suspended from duty at 
the Academy--
            ``(A) pending separation from the Academy;
            ``(B) pending return to the Academy to repeat an academic 
        semester or year; or
            ``(C) for other good cause.
    ``(2) A cadet or midshipman placed on involuntary leave under 
paragraph (1) is not entitled to any pay under section 230(c) of title 
37 for the period of the leave.
    ``(3) A return of a cadet or midshipman to a pay status at the 
Academy from an involuntary leave status under paragraph (1) does not 
restore any entitlement of the cadet or midshipman to pay for the 
period of the involuntary leave.''.
    (b) Subsection Headings.--Such section, as amended by subsection 
(a), is further amended--
            (1) in subsection (a), by inserting ``Graduation Leave.--'' 
        after ``(a)'';
            (2) in subsection (c), by inserting ``Inapplicable Leave 
        Provisions.--'' after ``(c)''; and
            (3) in subsection (d), by inserting ``Regulations.--'' 
        after ``(d)''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. THREE-MONTH EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``December 31, 
1999''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37, 
United States Code, as redesignated by section 622, is amended by 
striking out ``September 30, 1999'' and inserting in lieu thereof 
``December 31, 1999''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking out ``October 1, 1999'' and 
inserting in lieu thereof ``January 1, 2000''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1999'' and inserting in lieu thereof ``December 31, 1999''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 
30, 1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof ``December 31, 
1999''.

SEC. 613. THREE-MONTH EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              OTHER BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking out ``September 30, 1999,'' 
and inserting in lieu thereof ``December 31, 1999,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1999'' and inserting in lieu thereof ``December 31, 1999''.
    (c) Enlistment Bonuses for Members With Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each amended 
by striking out ``September 30, 1999'' and inserting in lieu thereof 
``December 31, 1999''.
    (d) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking out ``September 30, 1999'' and inserting in lieu 
thereof ``December 31, 1999''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``December 31, 1999''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking out ``October 1, 
1999'' and inserting in lieu thereof ``October 1, 1998, and the 15-
month period beginning on that date and ending on December 31, 1999''.

SEC. 614. ELIGIBILITY OF RESERVES FOR SELECTIVE REENLISTMENT BONUS WHEN 
              REENLISTING OR EXTENDING TO PERFORM ACTIVE GUARD AND 
              RESERVE DUTY.

    Section 308(a)(1)(D) of title 37, United States Code, is amended by 
inserting after ``a regular component of the service concerned'' the 
following: ``, or in a reserve component of the service concerned in 
the case of a member reenlisting or extending to perform active Guard 
and Reserve duty (as defined in section 101(d)(6) of title 10),''.

SEC. 615. REPEAL OF TEN-PERCENT LIMITATION ON PAYMENTS OF SELECTIVE 
              REENLISTMENT BONUSES IN EXCESS OF $20,000.

    Section 308(b) of title 37, United States Code, is amended--
            (1) by striking out paragraph (2); and
            (2) in paragraph (1), by striking out ``(1)''.

SEC. 616. INCREASE OF MAXIMUM AMOUNT AUTHORIZED FOR ARMY ENLISTMENT 
              BONUS.

    Section 308f(a) of title 37, United States Code, is amended by 
striking out ``$4,000'' and inserting in lieu thereof ``$6,000''.

SEC. 617. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH PROFESSIONS 
              OFFICERS SERVING IN SELECTED RESERVE.

    (a) Eligible Persons.--Subsection (b)(2) of section 16302 of title 
10, United States Code, is amended by inserting ``, or is enrolled in a 
program of education leading to professional qualifications,'' after 
``possesses professional qualifications''.
    (b) Increased Benefits.--Subsection (c) of such section is 
amended--
            (1) in paragraph (2), by striking out ``$3,000'' and 
        inserting in lieu thereof ``$20,000''; and
            (2) in paragraph (3), by striking out ``$20,000'' and 
        inserting in lieu thereof ``$50,000''.

SEC. 618. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE UNDER ALL-
              VOLUNTEER FORCE PROGRAM FOR PERSONNEL WITH CRITICALLY 
              SHORT SKILLS OR SPECIALTIES.

    Section 3015(d) of title 38, United States Code, is amended by 
striking out ``$700'' and inserting in lieu thereof ``$950''.

SEC. 619. RELATIONSHIP OF ENTITLEMENTS TO ENLISTMENT BONUSES AND 
              BENEFITS UNDER THE ALL-VOLUNTEER FORCE EDUCATIONAL 
              ASSISTANCE PROGRAM.

    (a) Entitlements Not Exclusive.--(1) Subchapter II of chapter 30 of 
title 38, United States Code, is amended by adding at the end the 
following:
``Sec. 3019A. Relationship to entitlement to certain enlistment bonuses
    ``The entitlement of an individual to benefits under this chapter 
is not affected by receipt by that individual of an enlistment bonus 
under section 308a or 308f of title 37.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3019 the 
following:

``3019A. Relationship to entitlement to certain enlistment bonuses.''.
    (b) Repeal of Related Limitation.--Section 8013(a) of Public Law 
105-56 (111 Stat. 1222) is amended--
            (1) by striking out ``of this Act--'' and all that follows 
        through ``nor shall any amounts'' and inserting in lieu thereof 
        ``of this Act enlists in the armed services for a period of 
        active duty of less that three years, nor shall any amounts''; 
        and
            (2) in the first proviso, by striking out ``in the case of 
        a member covered by clause (1),''.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. TRAVEL AND TRANSPORTATION FOR REST AND RECUPERATION IN 
              CONNECTION WITH CONTINGENCY OPERATIONS AND OTHER DUTY.

    Section 411c of title 37, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B); and
                    (B) by inserting ``In General.--(1)'' after 
                ``(a)'';
            (2) in subsection (b), by striking out ``(b) The 
        transportation authorized by this section'' and inserting in 
        lieu thereof ``(2) The transportation authorized by paragraph 
        (1)''; and
            (3) by adding at the end the following:
    ``(b) Contingency Operations and Other Special Situations.--(1) 
Under uniform regulations prescribed by the Secretaries concerned, a 
member of the armed forces serving a tour of duty at a duty station, 
and under conditions, described in paragraph (2) may be paid for or 
provided transportation to a location described in subsection (a)(1) as 
part of a program of rest and recuperation specifically authorized for 
members of the armed forces serving under those conditions at that duty 
station by the Secretary concerned in advance of the commencement of 
the member's travel.
    ``(2) Paragraph (1) applies to a member of the armed forces serving 
at a duty station outside the United States if--
            ``(A) the member is participating in a contingency 
        operation at or from that duty station; or
            ``(B) the payment for or provision of transportation would 
        be in the best interests of members of the armed forces and the 
        United States because of unusual conditions at the duty 
        station, as determined by the Secretary concerned.
    ``(3) Transportation may not be paid for or provided to a member 
under this subsection for travel that begins--
            ``(A) more than 24 months after the commencement of the 
        tour of duty for which the transportation is authorized; or
            ``(B) after the tour of duty ends.
    ``(4) The transportation authorized by this subsection is limited 
to one round-trip during any tour of at least 6, but less than 24, 
consecutive months.
    ``(5) Transportation paid for or provided to a member under this 
subsection may not be counted as transportation for which the member is 
eligible under subsection (a).''.

SEC. 622. PAYMENT FOR TEMPORARY STORAGE OF BAGGAGE OF DEPENDENT STUDENT 
              NOT TAKEN ON ANNUAL TRIP TO OVERSEAS DUTY STATION OF 
              SPONSOR.

    Section 430(b) of title 37, United States Code, is amended by 
striking out the second sentence and inserting in lieu thereof the 
following: ``The allowance authorized by this section may be prescribed 
by the Secretaries concerned as transportation in kind or reimbursement 
therefor, including an amount for the temporary storage of any baggage 
not taken with the child on the annual trip if determined advantageous 
to the Government.''.

SEC. 623. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY SCHEDULE 
              RATES FOR ATTENDANCE AT INACTIVE DUTY TRAINING 
              ASSEMBLIES.

    (a) Authority.--Chapter 1217 of title 10, United States Code is 
amended by adding at the end the following:
``Sec. 12603. Commercial travel at Federal supply schedule rates for 
              attendance at inactive duty training assemblies
    ``(a) Federal Supply Schedule Travel.--Commercial travel under 
Federal supply schedules is authorized for the travel of a Reserve to 
the location of inactive duty training to be performed by the Reserve 
or from that location upon completion of the training.
    ``(b) Regulations.--The Secretary of Defense shall prescribe in 
regulations the requirements, conditions, and restrictions for travel 
under the authority of subsection (a) that the Secretary considers 
appropriate. The regulations shall include policies and procedures for 
preventing abuses of the travel authority.
    ``(c) Reimbursement Not Authorized.--A Reserve is not entitled to 
Government reimbursement for the cost of travel authorized under 
subsection (a).
    ``(d) Treatment of Transportation as Use by Military Departments.--
For the purposes of section 201(a) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481(a)), travel 
authorized under subsection (a) shall be treated as transportation for 
the use of a military department.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``12603. Commercial travel at Federal supply schedule rates for 
                            attendance at inactive duty training 
                            assemblies.''.

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

SEC. 631. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    (a) Paid Up at 30 Years of Service and Age 70.--Section 1452 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(j) Coverage Paid Up at 30 Years and Attainment of Age 70.--(1) 
Coverage of a survivor of a member under the Plan shall be considered 
paid up as of the end of the later of--
            ``(A) the 360th month in which the member's retired pay has 
        been reduced under this section; or
            ``(B) the month in which the member attains 70 years of 
        age.
    ``(2) The retired pay of a member shall not be reduced under this 
section to provide coverage of a survivor under the Plan after the 
month when the coverage is considered paid up under paragraph (1).''.
    (b) Effective Date.--Section 1452(j) of title 10, United States 
Code (as added by subsection (a)), shall take effect on October 1, 
2003.

SEC. 632. COURT-REQUIRED SURVIVOR BENEFIT PLAN COVERAGE EFFECTUATED 
              THROUGH ELECTIONS AND DEEMED ELECTIONS.

    (a) Elimination of Disparity in Effective Date Provisions.--Section 
1448(b)(3) of title 10, United States Code, is amended--
            (1) in subparagraph (C)--
                    (A) by striking out the second sentence; and
                    (B) by striking out ``effective date,'' in the 
                heading; and
            (2) by adding at the end the following:
                    ``(E) Effective date.--An election under this 
                paragraph--
                            ``(i) in the case of a person required (as 
                        described in section 1450(f)(3)(B) of this 
                        title) to make the election, is effective as of 
                        the first day of the first month which begins 
after the date of the court order or filing that requires the election; 
and
                            ``(ii) in all other cases, is effective as 
                        of the first day of the first calendar month 
                        following the month in which the election is 
                        received by the Secretary concerned.''.
    (b) Conformity by Cross Reference.--Section 1450(f)(3)(D) of such 
title is amended by striking out ``the first day of the first month 
which begins after the date of the court order or filing involved'' and 
inserting in lieu thereof ``the day referred to in section 
1448(b)(3)(E)(i) of this title''.

SEC. 633. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF MEDICALLY 
              RETIRED MEMBER WHO DIES DURING HOSPITALIZATION THAT 
              BEGINS WHILE ON ACTIVE DUTY.

    (a) In General.--Section 1481(a)(7) of title 10, United States 
Code, is amended to read as follows:
            ``(7) A person who--
                    ``(A) dies as a retired member of an armed force 
                under the Secretary's jurisdiction during a continuous 
                hospitalization of the member as a patient in a United 
                States hospital that began while the member was on 
                active duty for a period of more than 30 days; or
                    ``(B) is not covered by subparagraph (A) and, while 
                in a retired status by reason of eligibility to retire 
                under chapter 61 of this title, dies during a 
                continuous hospitalization of the person that began 
                while the person was on active duty as a Regular of an 
                armed force, or a member of an armed force without 
                component, under the Secretary's jurisdiction.''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date of the enactment of this Act and applies with 
respect to deaths occurring on or after that date.

                       Subtitle E--Other Matters

SEC. 641. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR PAY AND 
              ALLOWANCES PURPOSES.

    Section 101(2) of title 37, United States Code, is amended by 
striking out ``the Canal Zone,''.

SEC. 642. FEDERAL EMPLOYEES' COMPENSATION COVERAGE FOR STUDENTS 
              PARTICIPATING IN CERTAIN OFFICER CANDIDATE PROGRAMS.

    (a) Periods of Coverage.--Subsection (a)(2) of section 8140 of 
title 5, United States Code, is amended to read as follows:
            ``(2) during the period of the member's attendance at 
        training or a practice cruise under chapter 103 of title 10, 
        beginning when the authorized travel to the training or 
        practice cruise begins and ending when authorized travel from 
        the training or practice cruise ends.''.
    (b) Line of Duty.--Subsection (b) of such section is amended to 
read as follows:
    ``(b) For the purpose of this section, an injury, disability, 
death, or illness of a member referred to in subsection (a) may be 
considered as incurred or contracted in line of duty only if the 
injury, disability, or death is incurred, or the illness is contracted, 
by the member during a period described in that subsection. Subject to 
review by the Secretary of Labor, the Secretary of the military 
department concerned (under regulations prescribed by that Secretary), 
shall determine whether an injury, disability, or death was incurred, 
or an illness was contracted, by a member in line of duty.''.
    (c) Clarification of Casualties Covered.--Subsection (a) of such 
section, as amended by subsection (a) of this section, is further 
amended by inserting ``, or an illness contracted,'' after ``death 
incurred'' in the matter preceding paragraph (1).
    (d) Effective Date and Applicability.--The amendments made by 
subsections (a) and (b) shall take effect on the date of the enactment 
of this Act and apply with respect to injuries, illnesses, 
disabilities, and deaths incurred or contracted on or after that date.

SEC. 643. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR EDUCATION OF 
              CERTAIN DEFENSE DEPENDENTS OVERSEAS.

    Section 1407(b) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 926(b)) is amended--
            (1) by striking out ``(b) Under such circumstances as he 
        may by regulation prescribe, the Secretary of Defense'' and 
        inserting in lieu thereof ``(b) Tuition and Assistance When 
        Schools Unavailable.--(1) Under such circumstances as the 
        Secretary of Defense may prescribe in regulations, the 
        Secretary''; and
            (2) by adding at the end the following:
    ``(2)(A) The Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not operating 
as a service of the Navy, may provide financial assistance to sponsors 
of dependents in overseas areas where schools operated by the Secretary 
of Defense under subsection (a) are not reasonably available in order 
to assist the sponsors to defray the costs incurred by the sponsors for 
the attendance of the dependents at schools in such areas other than 
schools operated by the Secretary of Defense.
    ``(B) The Secretary of Defense and the Secretary of Transportation 
shall each prescribe regulations relating to the availability of 
financial assistance under subparagraph (A). Such regulations shall, to 
the maximum extent practicable, be consistent with Department of State 
regulations relating to the availability of financial assistance for 
the education of dependents of Department of State personnel 
overseas.''.

                         TITLE VII--HEALTH CARE

SEC. 701. DEPENDENTS' DENTAL PROGRAM.

    (a) Inflation-Indexed Premium.--(1) Section 1076a(b)(2) of title 
10, United States Code, is amended--
            (A) by inserting ``(A)'' after ``(2)''; and
            (B) by adding at the end the following:
    ``(B) Effective as of January 1 of each year, the amount of the 
premium required under subparagraph (A) shall be increased by the 
percent equal to the lesser of--
            ``(i) the percent by which the rates of basic pay of 
        members of the uniformed services are increased on such date; 
        or
            ``(ii) the sum of one-half percent and the percent computed 
        under section 5303(a) of title 5 for the increase in rates of 
        basic pay for statutory pay systems for pay periods beginning 
        on or after such date.''.
    (2) The amendment made by subparagraph (B) of paragraph (1) shall 
take effect on January 1, 1999, and shall apply to months after 1998 as 
if such subparagraph had been in effect since December 31, 1993.
    (b) Offer of Plan Under TRICARE.--(1) Section 1097 of such title is 
amended by adding at the end the following:
    ``(f) Dependents' Dental Plan.--A basic dental benefits plan 
established for eligible dependents under section 1076a of this title 
may be offered under the TRICARE program.''.
    (2) Subsection (e) of such section is amended by adding at the end 
the following: ``Charges for a basic dental benefits plan offered under 
the TRICARE program pursuant to subsection (f) shall be those provided 
for under section 1076a of this title.''.

SEC. 702. EXTENSION OF AUTHORITY FOR USE OF PERSONAL SERVICES CONTRACTS 
              FOR PROVISION OF HEALTH CARE AT MILITARY ENTRANCE 
              PROCESSING STATIONS AND ELSEWHERE OUTSIDE MEDICAL 
              TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended in 
the second sentence by striking out ``the end of the one-year period 
beginning on the date of the enactment of this paragraph'' and 
inserting in lieu thereof ``June 30, 1999''.

SEC. 703. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE PAYMENT 
              OPTIONS.

    (a) Procedures.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1097 the following new section:
``Sec. 1097a. TRICARE Prime: automatic enrollments; payment options
    ``(a) Automatic Enrollment of Certain Dependents.--Each dependent 
of a member of the uniformed services in grade E4 or below who is 
entitled to medical and dental care under section 1076(a)(2)(A) of this 
title and resides in the catchment area of a facility of a uniformed 
service offering TRICARE Prime shall be automatically enrolled in 
TRICARE Prime at the facility. The Secretary concerned shall provide 
written notice of the enrollment to the member. The enrollment of a 
dependent of the member may be terminated by the member or the 
dependent at any time.
    ``(b) Automatic Renewal of Enrollments of Covered Beneficiaries.--
(1) An enrollment of a covered beneficiary in TRICARE Prime shall be 
automatically renewed upon the expiration of the enrollment unless the 
renewal is declined.
    ``(2) Not later than 15 days before the expiration date for an 
enrollment of a covered beneficiary in TRICARE Prime, the Secretary 
concerned shall--
            ``(A) transmit a written notification of the pending 
        expiration and renewal of enrollment to the covered beneficiary 
        or, in the case of a dependent of a member of the uniformed 
        services, to the member; and
            ``(B) afford the beneficiary or member, as the case may be, 
        an opportunity to decline the renewal of enrollment.
    ``(c) Payment Options for Retirees.--A member or former member of 
the uniformed services eligible for medical care and dental care under 
section 1074(b) of this title may elect to have any fee payable by the 
member or former member for an enrollment in TRICARE Prime withheld 
from the member's retired pay, retainer pay, or equivalent pay, as the 
case may be, or to be paid from a financial institution through 
electronic transfers of funds. The fee shall be paid in accordance with 
the election.
    ``(d) Regulations.--The administering Secretaries shall prescribe 
regulations, including procedures, for carrying out this section.
    ``(e) Definitions.--In this section:
            ``(1) The term `TRICARE Prime' means the managed care 
        option of the TRICARE program.
            ``(2) The term `catchment area', with respect to a facility 
        of a uniformed service, means the service area of the facility, 
        as designated under regulations prescribed by the administering 
        Secretaries.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1097 the 
following new item:

1097a. TRICARE Prime: automatic enrollments; payment options.''.
    (b) Deadline for Implementation.--The regulations required under 
subsection (d) of section 1097a of title 10, United States Code (as 
added by subsection (a)), shall be prescribed to take effect not later 
than January 1, 1999. The section shall be applied under TRICARE Prime 
on and after the date on which the regulations take effect.

SEC. 704. LIMITED CONTINUED CHAMPUS COVERAGE FOR PERSONS UNAWARE OF A 
              LOSS OF CHAMPUS COVERAGE RESULTING FROM ELIGIBILITY FOR 
              MEDICARE.

    (a) Continuation of Eligibility.--The eligibility of a person 
described in subsection (b) for care under CHAMPUS may be continued 
under regulations prescribed by the administering Secretaries if it is 
determined under the regulations that the continuation of the 
eligibility is appropriate in order to ensure that the person has 
adequate access to health care.
    (b) Eligible Persons.--Subsection (a) applies to a person who--
            (1) has been eligible for health care under CHAMPUS;
            (2) loses eligibility for health care under CHAMPUS solely 
        by reason of paragraph (1) of section 1086(d), United States 
        Code;
            (3) is unaware of the loss of eligibility; and
            (4) satisfies the conditions set forth in subparagraphs (A) 
        and (B) of paragraph (2) of such section 1086(d) at the time 
        health care is provided under CHAMPUS pursuant to a 
        continuation of eligibility in accordance with this section.
    (c) Period of Continued Eligibility.--A continuation of eligibility 
under this section shall apply with regard to health care provided on 
or after October 1, 1998, and before July 1, 1999.
    (d) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given such term in paragraph (3) of section 1072 of title 10, 
        United States Code.
            (2) The term ``CHAMPUS'' means the Civilian Health and 
        Medical Program of the Uniformed Services, as defined in 
        paragraph (4) of such section.

SEC. 705. ENHANCED DEPARTMENT OF DEFENSE ORGAN AND TISSUE DONOR 
              PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) Organ and tissue transplantation is one of the most 
        remarkable medical success stories in the history of medicine.
            (2) Each year, the number of people waiting for organ or 
        tissue transplantation increases. It is estimated that there 
        are approximately 39,000 patients, ranging in age from babies 
        to those in retirement, awaiting transplants of kidneys, 
        hearts, livers, and other solid organs.
            (3) The Department of Defense has made significant progress 
        in increasing the awareness of the importance of organ and 
        tissue donations among members of the Armed Forces.
            (4) The inclusion of organ and tissue donor elections in 
        the Defense Enrollment Eligibility Reporting System (DEERS) 
        central database through the Real-time Automated Personnel 
        Identification System (RAPIDS) represents a major step in 
        ensuring that organ and tissue donor elections are a matter of 
        record and are accessible in a timely manner.
    (b) Responsibilities of the Secretary of Defense.--The Secretary of 
Defense shall ensure that the advanced systems developed for recording 
Armed Forces members' personal data and information (such as the 
SMARTCARD, MEDITAG, and Personal Information Carrier) include the 
capability to record organ and tissue donation elections.
    (c) Responsibilities of the Secretaries of the Military 
Departments.--The Secretaries of the military departments shall ensure 
that--
            (1) appropriate information about organ and tissue donation 
        is provided to each recruit and officer candidate of the Armed 
        Forces during initial training;
            (2) members of the Armed Forces are given recurring, 
        specific opportunities to elect to be organ or tissue donors 
        during service in the Armed Forces and upon retirement; and
            (3) members of the Armed Forces electing to be organ or 
        tissue donors are encouraged to advise their next of kin 
        concerning the donation decision and any subsequent change of 
        that decision.
    (d) Responsibilities of the Surgeons General of the Military 
Department.--The Surgeons General of the Armed Forces shall ensure 
that--
            (1) appropriate training is provided to enlisted and 
        officer medical personnel to facilitate the effective operation 
        of organ and tissue donation activities under garrison 
        conditions and, to the extent possible, under operational 
        conditions; and
            (2) medical logistical activities can, to the extent 
        possible without jeopardizing operational requirements, support 
        an effective organ and tissue donation program.
    (e) Report.--Not later than September 1, 1999, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives 
a report on the status of the implementation of this section.

SEC. 706. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS 
              AFFAIRS REVIEWS RELATING TO INTERDEPARTMENTAL COOPERATION 
              IN THE DELIVERY OF MEDICAL CARE.

    (a) Findings.--Congress makes the following findings:
            (1) The military health care system of the Department of 
        Defense and the Veterans Health Administration of the 
        Department of Veterans Affairs are national institutions that 
        collectively manage more than 1,500 hospitals, clinics, and 
        health care facilities worldwide to provide services to more 
        than 11,000,000 beneficiaries.
            (2) In the post-Cold War era, these institutions are in a 
        profound transition that involves challenging opportunities.
            (3) During the period from 1988 to 1998, the number of 
        military medical personnel has declined by 15 percent and the 
        number of military hospitals has been reduced by one-third.
            (4) During the two years since 1996, the Department of 
        Veterans Affairs has revitalized its structure by 
        decentralizing authority into 22 Veterans Integrated Service 
        Networks.
            (5) In the face of increasing costs of medical care, 
        increased demands for health care services, and increasing 
        budgetary constraints, the Department of Defense and the 
        Department of Veterans Affairs have embarked on a variety of 
        dynamic and innovative cooperative programs ranging from shared 
        services to joint venture operations of medical facilities.
            (6) In 1984, there was a combined total of 102 Department 
        of Veterans Affairs and Department of Defense facilities with 
        sharing agreements. By 1997, that number had grown to 420. 
        During the six years from fiscal year 1992 through fiscal year 
        1997, shared services increased from slightly over 3,000 
        services to more than 6,000 services ranging from major medical 
        and surgical services, laundry, blood, and laboratory services 
        to unusual speciality care services.
            (7) The Department of Defense and the Department of 
        Veterans Affairs are conducting four health care joint ventures 
        in New Mexico, Nevada, Texas, Oklahoma, and are planning to 
        conduct four more such ventures in Alaska, Florida, Hawaii, and 
        California.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Department of Defense and the Department of 
        Veterans Affairs are to be commended for the cooperation 
        between the two departments in the delivery of medical care, of 
        which the cooperation involved in the establishment and 
        operation of the Department of Defense and the Department of 
        Veterans Affairs Executive Council is a praiseworthy example;
            (2) the two departments are encouraged to continue to 
        explore new opportunities to enhance the availability and 
        delivery of medical care to beneficiaries by further enhancing 
        the cooperative efforts of the departments; and
            (3) enhanced cooperation is encouraged for--
                    (A) the general areas of access to quality medical 
                care, identification and elimination of impediments to 
                enhanced cooperation, and joint research and program 
                development; and
                    (B) the specific areas in which there is 
                significant potential to achieve progress in 
                cooperation in a short term, including computerization 
                of patient records systems, participation of the 
                Department of Veterans Affairs in the TRICARE program, 
                pharmaceutical programs, and joint physical 
                examinations.
    (c) Joint Survey of Populations Served.--(1) The Secretary of 
Defense and the Secretary of Veterans Affairs shall jointly conduct a 
survey of their respective medical care beneficiary populations to 
identify, by category of beneficiary (defined as the Secretaries 
consider appropriate), the expectations of, requirements for, and 
behavior patterns of the beneficiaries with respect to medical care. 
The two Secretaries shall develop the protocol for the survey jointly, 
but shall obtain the services of an entity independent of the 
Department of Defense and the Department of Veterans Affairs for 
carrying out the survey.
    (2) The survey shall include the following:
            (A) Demographic characteristics, economic characteristics, 
        and geographic location of beneficiary populations with regard 
        to catchment or service areas.
            (B) The types and frequency of care required by veterans, 
        retirees, and dependents within catchment or service areas of 
        Department of Defense and Veterans Affairs medical facilities 
        and outside those areas.
            (C) The numbers of, characteristics of, and types of 
        medical care needed by the veterans, retirees, and dependents 
        who, though eligible for medical care in Department of Defense 
        or Department of Veterans Affairs treatment facilities or other 
        federally funded medical programs, choose not to seek medical 
        care from those facilities or under those programs, and the 
        reasons for that choice.
            (D) The obstacles or disincentives for seeking medical care 
        from such facilities or under such programs that veterans, 
        retirees, and dependents perceive.
            (E) Any other matters that the Secretary of Defense and the 
        Secretary of Veterans Affairs consider appropriate for the 
        survey.
    (3) The Secretary of Defense and the Secretary of Veterans Affairs 
shall submit a report on the results of the survey to the appropriate 
committees of Congress. The report shall contain the matters described 
in paragraph (2) and any proposals for legislation that the Secretaries 
recommend for enhancing Department of Defense and Department of 
Veterans Affairs cooperative efforts with respect to the delivery of 
medical care.
    (d) Review of Law and Policies.--(1) The Secretary of Defense and 
the Secretary of Veterans Affairs shall jointly conduct a review to 
identify impediments to cooperation between the Department of Defense 
and the Department of Veterans Affairs regarding the delivery of 
medical care. The matters reviewed shall include the following:
            (A) All laws, policies, and regulations, and any attitudes 
        of beneficiaries of the health care systems of the two 
        departments, that have the effect of preventing the 
        establishment, or limiting the effectiveness, of cooperative 
        health care programs of the departments.
            (B) The requirements and practices involved in the 
        credentialling and licensure of health care providers.
            (C) The perceptions of beneficiaries in a variety of 
        categories (defined as the Secretaries consider appropriate) 
        regarding the various Federal health care systems available for 
        their use.
    (2) The Secretaries shall jointly submit a report on the results of 
the review to the appropriate committees of Congress. The report shall 
include any proposals for legislation that the Secretaries recommend 
for eliminating or reducing impediments to interdepartmental 
cooperation that are identified during the review.
    (e) Participation in TRICARE.--(1) The Secretary of Defense shall 
review the TRICARE program to identify opportunities for increased 
participation by the Department of Veterans Affairs in that program. 
The ongoing collaboration between Department of Defense officials and 
Department of Veterans Affairs officials regarding increasing the 
participation shall be included among the matters reviewed.
    (2) The Secretary of Defense and the Secretary of Veterans Affairs 
shall jointly submit to the appropriate committees of Congress a 
semiannual report on the status of the review and on efforts to 
increase the participation of the Department of Veterans Affairs in the 
TRICARE program. No report is required under this paragraph after the 
submission of a semiannual report in which the Secretaries declare that 
the Department of Veterans Affairs is participating in the TRICARE 
program to the extent that can reasonably be expected to be attained.
    (f) Pharmaceutical Benefits and Programs.--(1) The Federal 
Pharmaceutical Steering Committee shall--
            (A) undertake a comprehensive examination of existing 
        pharmaceutical benefits and programs for beneficiaries of 
        Federal medical care programs, including matters relating to 
        the purchasing, distribution, and dispensing of pharmaceuticals 
        and the management of mail order pharmaceuticals programs; and
            (B) review the existing methods for contracting for and 
        distributing medical supplies and services.
    (2) The committee shall submit a report on the results of the 
examination to the appropriate committees of Congress.
    (g) Standardization of Physical Examinations for Disability.--The 
Secretary of Defense and the Secretary of Veterans Affairs shall submit 
to the appropriate committees of Congress a report on the status of the 
efforts of the Department of Defense and the Department of Veterans 
Affairs to standardize physical examinations administered by the two 
departments for the purpose of determining or rating disabilities.
    (h) Appropriate Committees of Congress Defined.--For the purposes 
of this section, the appropriate committees of Congress are as follows:
            (1) The Committee on Armed Services and the Committee on 
        Veterans' Affairs of the Senate.
            (2) The Committee on National Security and the Committee on 
        Veterans' Affairs of the House of Representatives.
    (i) Deadlines for Submission of Reports.--(1) The report required 
by subsection (c)(3) shall be submitted not later than January 1, 2000.
    (2) The report required by subsection (d)(2) shall be submitted not 
later than March 1, 1999.
    (3) The semiannual report required by subsection (e)(2) shall be 
submitted not later than March 1 and September 1 of each year.
    (4) The report on the examination required under subsection (f) 
shall be submitted not later than 60 days after the completion of the 
examination.
    (5) The report required by subsection (g) shall be submitted not 
later than March 1, 1999.

SEC. 707. DEMONSTRATION PROJECTS TO PROVIDE HEALTH CARE TO CERTAIN 
              MEDICARE-ELIGIBLE BENEFICIARIES OF THE MILITARY HEALTH 
              CARE SYSTEM.

    (a) In General.--(1) The Secretary of Defense shall, after 
consultation with the other administering Secretaries, carry out three 
demonstration projects (described in subsections (d), (e), and (f)) in 
order to assess the feasibility and advisability of providing certain 
medical care coverage to the medicare-eligible individuals described in 
subsection (b).
    (2) The Secretary shall commence the demonstration projects not 
later than January 1, 2000, and shall terminate the demonstration 
projects not later than December 31, 2003.
    (3) The aggregate costs incurred by the Secretary under the 
demonstration projects in any year may not exceed $60,000,000.
    (b) Eligible Individuals.--An individual eligible to participate in 
a demonstration project under subsection (a) is a member or former 
member of the uniformed services described in section 1074(b) of title 
10, United States Code, a dependent of the member described in section 
1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of 
the uniformed services who died while on active duty for a period of 
more than 30 days, who--
            (1) is 65 years of age or older;
            (2) is entitled to hospital insurance benefits under part A 
        of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
        seq.);
            (3) is enrolled in the supplemental medical insurance 
        program under part B of such title XVIII (42 U.S.C. 1395j et 
        seq.); and
            (4) resides in an area of the demonstration project 
        selected by the Secretary under subsection (c).
    (c) Areas of Demonstration Projects.--(1) Subject to paragraph (3), 
the Secretary shall carry out each demonstration project under this 
section in two separate areas selected by the Secretary.
    (2) Of the two areas selected for each demonstration project--
            (A) one shall be an area outside the catchment area of a 
        military medical treatment facility in which--
                    (i) no eligible organization has a contract in 
                effect under section 1876 of the Social Security Act 
                (42 U.S.C. 1395mm) and no Medicare+Choice organization 
                has a contract in effect under part C of title XVIII of 
                that Act (42 U.S.C. 1395w-21); or
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act is less than 2.5 percent of the 
                total number of individuals in the area who are 
                entitled to hospital insurance benefits under part A of 
                title XVIII of that Act; and
            (B) one shall be an area outside the catchment area of a 
        military medical treatment facility in which--
                    (i) at least one eligible organization has a 
                contract in effect under section 1876 of that Act or 
                one Medicare+Choice organization has a contract in 
                effect under part C of title XVIII of that Act; and
                    (ii) the aggregate number of enrollees with an 
                eligible organization with a contract in effect under 
                section 1876 of that Act or with a Medicare+Choice 
                organization with a contract in effect under part C of 
                title XVIII of that Act exceeds 10 percent of the total 
                number of individuals in the area who are entitled to 
                hospital insurance benefits under part A of title XVIII 
                of that Act.
    (3) The Secretary may not carry out a demonstration project under 
this section in any area in which the Secretary is carrying out any 
other medical care demonstration project unless the Secretary 
determines that the conduct of such other medical care demonstration 
project will not interfere with the conduct or evaluation of the 
demonstration project under this section.
    (d) FEHBP as Supplement to Medicare Demonstration.--(1)(A) Under 
one of the demonstration projects under this section, the Secretary 
shall permit eligible individuals described in subsection (b) who 
reside in the areas of the demonstration project selected under 
subsection (c) to enroll in the health benefits plans offered through 
the Federal Employees Health Benefits program under chapter 89 of title 
5, United States Code.
    (B) The Secretary shall carry out the demonstration project under 
this subsection under an agreement with the Office of Personnel 
Management.
    (2)(A) An eligible individual described in paragraph (1) shall not 
be required to satisfy any eligibility criteria specified in chapter 89 
of title 5, United States Code, as a condition for enrollment in the 
health benefits plans offered through the Federal Employee Health 
Benefits program under the demonstration project under this subsection.
    (B) Each eligible individual who enrolls in a health benefits plan 
under the demonstration project shall be required to remain enrolled in 
the supplemental medical insurance program under part B of title XVIII 
of the Social Security Act while participating in the demonstration 
project.
    (3)(A) The authority responsible for approving retired or retainer 
pay or equivalent pay in the case of a member or former member shall 
manage the participation of the members or former members who enroll in 
health benefits plans offered through the Federal Employee Health 
Benefits program pursuant to paragraph (1).
    (B) Such authority shall distribute program information to eligible 
individuals, process enrollment applications, forward all required 
contributions to the Employees Health Benefits Fund established under 
section 8909 of title 5, United States Code, in a timely manner, assist 
in the reconciliation of enrollment records with health plans, and 
prepare such reports as the Office of Personnel Management may require 
in its administration of chapter 89 of such title.
    (4)(A) The Office of Personnel Management shall require health 
benefits plans under chapter 89 of title 5, United States Code, that 
participate in the demonstration project to maintain a separate risk 
pool for purposes of establishing premium rates for eligible 
individuals who enroll in such plans in accordance with this 
subsection.
    (B) The Office shall determine total subscription charges for self 
only or for family coverage for eligible individuals who enroll in a 
health benefits plan under chapter 89 of such title in accordance with 
this subsection, which shall include premium charges paid to the plan 
and amounts described in section 8906(c) of title 5, United States 
Code, for administrative expenses and contingency reserves.
    (5) The Secretary shall be responsible for the Government 
contribution for an eligible individual who enrolls in a health 
benefits plan under chapter 89 of title 5, United States Code, in 
accordance with this subsection, except that the amount of the 
contribution may not exceed the amount of the Government contribution 
which would be payable if such individual were an employee enrolled in 
the same health benefits plan and level of benefits.
    (6) The cancellation by a eligible individual of coverage under the 
Federal Employee Health Benefits program shall be irrevocable during 
the term of the demonstration project under this subsection.
    (e) TRICARE as Supplement to Medicare Demonstration.--(1) Under one 
of the demonstration projects under this section, the Secretary shall 
permit eligible individuals described in subsection (b) who reside in 
each area of the demonstration project selected under subsection (c) to 
enroll in the TRICARE program. The demonstration project under this 
subsection shall be known as the ``TRICARE Senior Supplement''.
    (2) Payment for care and services received by eligible individuals 
who enroll in the TRICARE program under the demonstration project shall 
be made as follows:
            (A) First, under title XVIII of the Social Security Act, 
        but only the extent that payment for such care and services is 
        provided for under that title.
            (B) Second, under the TRICARE program, but only to the 
        extent that payment for such care and services is provided 
        under that program and is not provided for under subparagraph 
        (A).
            (C) Third, by the eligible individual concerned, but only 
        to the extent that payment for such care and services is not 
        provided for under subparagraphs (B) and (C).
    (3)(A) The Secretary shall require each eligible individual who 
enrolls in the TRICARE program under the demonstration project to pay 
an enrollment fee. The Secretary may provide for payment of the 
enrollment fee on a periodic basis.
    (B) The amount of the enrollment fee of an eligible individual 
under subparagraph (A) in any year may not exceed an amount equal to 75 
percent of the total subscription charges in that year for self-only or 
family, fee-for-service coverage under the health benefits plan under 
the Federal Employees Health Benefits program under chapter 89 of title 
5, United States Code, that is most similar in coverage to the TRICARE 
program.
    (f) TRICARE Mail Order Pharmacy Benefit Supplement to Medicare 
Demonstration.--(1) Under one of the demonstration projects under this 
section, the Secretary shall permit eligible individuals described in 
subsection (b) who reside in each area of the demonstration project 
selected under subsection (c) to participate in the mail order pharmacy 
benefit available under the TRICARE program.
    (2) The Secretary may collect from eligible individuals who 
participate in the mail order pharmacy benefit under the demonstration 
project any premiums, deductibles, copayments, or other charges that 
the Secretary would otherwise collect from individuals similar to such 
eligible individuals for participation in the benefit.
    (g) Independent Evaluation.--(1) The Secretary shall provide for an 
evaluation of the demonstration projects conducted under this section 
by an appropriate person or entity that is independent of the 
Department of Defense.
    (2) The evaluation shall include the following:
            (A) An analysis of the costs of each demonstration project 
        to the United States and to the eligible individuals who enroll 
        or participate in such demonstration project.
            (B) An assessment of the extent to which each demonstration 
        project satisfied the requirements of such eligible individuals 
        for the health care services available under such demonstration 
        project.
            (C) An assessment of the effect, if any, of each 
        demonstration project on military medical readiness.
            (D) A description of the rate of the enrollment or 
        participation in each demonstration project of the individuals 
        who were eligible to enroll or participate in such 
        demonstration project.
            (E) An assessment of which demonstration project provides 
        the most suitable model for a program to provide adequate 
        health care services to the population of individuals 
        consisting of the eligible individuals.
            (F) An evaluation of any other matters that the Secretary 
        considers appropriate.
    (3) The Comptroller General shall review the evaluation conducted 
under paragraph (1). In carrying out the review, the Comptroller 
General shall--
            (A) assess the validity of the processes used in the 
        evaluation; and
            (B) assess the validity of any findings under the 
        evaluation.
    (4)(A) The Secretary shall submit a report on the results of the 
evaluation under paragraph (1), together with the evaluation, to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives not later than December 31, 
2003.
    (B) The Comptroller General shall submit a report on the results of 
the review under paragraph (3) to the committees referred to in 
subparagraph (A) not later than February 15, 2004.
    (h) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given that term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.

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

SEC. 801. PARA-ARAMID FIBERS AND YARNS.

    (a) Authorized Sources.--Chapter 141 of title 10, United States 
Code is amended by adding at the end the following:
``Sec. 2410n. Foreign manufactured para-aramid fibers and yarns: 
              procurement
    ``(a) Authority.--The Secretary of Defense may procure articles 
containing para-aramid fibers and yarns manufactured in a foreign 
country referred to in subsection (b).
    ``(b) Foreign Countries Covered.--The authority under subsection 
(a) applies with respect to a foreign country that--
            ``(1) is a party to a defense memorandum of understanding 
        entered into under section 2531 of this title; and
            ``(2) permits United States firms that manufacture para-
        aramid fibers and yarns to compete with foreign firms for the 
        sale of para-aramid fibers and yarns in that country, as 
        determined by the Secretary of Defense.
    ``(c) Applicability to Subcontracts.--The authority under 
subsection (a) applies with respect to subcontracts under Department of 
Defense contracts as well as to such contracts.
    ``(d) Definitions.--In this section, the terms `United States firm' 
and `foreign firm' have the meanings given such terms in section 
2532(d) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``2410n. Foreign manufactured para-aramid fibers and yarns: 
                            procurement.''.

SEC. 802. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND UNOFFICIAL 
              TRAVEL UNDER ONE CONTRACT.

    (a) Authority.--Chapter 147 of title 10, United States Code, is 
amended by inserting after section 2490a the following new section:
``Sec. 2490b. Travel services: procurement for official and unofficial 
              travel under one contract
    ``(a) Authority.--The head of an agency may enter into a contract 
for travel-related services that provides for the contractor to furnish 
services for both official travel and unofficial travel.
    ``(b) Credits, Discounts, Commissions, Fees.--(1) A contract 
entered into under this section may provide for credits, discounts, or 
commissions or other fees to accrue to the Department of Defense. The 
accrual and amounts of credits, discounts, or commissions or other fees 
may be determined on the basis of the volume (measured in the number or 
total amount of transactions or otherwise) of the travel-related sales 
that are made by the contractor under the contract.
    ``(2) The evaluation factors applicable to offers for a contract 
under this section may include a factor that relates to the estimated 
aggregate value of any credits, discounts, commissions, or other fees 
that would accrue to the Department of Defense for the travel-related 
sales made under the contract.
    ``(3) Commissions or fees received by the Department of Defense as 
a result of travel-related sales made under a contract entered into 
under this section shall be distributed as follows:
            ``(A) For amounts relating to sales for official travel, 
        credit to appropriations available for official travel for the 
        fiscal year in which the amount is received.
            ``(B) For amounts relating to sales for unofficial travel, 
        deposit in nonappropriated fund accounts available for morale, 
        welfare, and recreation programs.
    ``(c) Definitions.--In this section:
            ``(1) The term `head of an agency' has the meaning given 
        that term in section 3202(1) of this title.
            ``(2) The term `official travel' means travel at the 
        expense of the Federal Government.
            ``(3) The term `unofficial travel' means personal travel or 
        other travel that is not paid for or reimbursed by the Federal 
        Government out of appropriated funds.
    ``(d) Inapplicability to Coast Guard and NASA.--This section does 
not apply to the Coast Guard when it is not operating as a service in 
the Navy, nor to the National Aeronautics and Space Administration.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``2490b. Travel services: procurement for official and unofficial 
                            travel under one contract.''.

SEC. 803. LIMITATION ON USE OF PRICE PREFERENCE UPON ATTAINMENT OF 
              CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES.

    Section 2323(e)(3) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by inserting ``, except as provided in (B),'' after 
        ``the head of an agency may'' in the first sentence; and
            (3) by adding at the end the following:
    ``(B) The head of an agency may not exercise the authority under 
subparagraph (A) to enter into a contract for a price exceeding fair 
market cost in the fiscal year following a fiscal year in which the 
Department of Defense attained the 5 percent goal required by 
subsection (a).''.

SEC. 804. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT TECHNICAL 
              ASSISTANCE COOPERATIVE AGREEMENT PROGRAM.

    (a) Correction of Description of Geographic Unit.--Section 2413(c) 
of title 10, United States Code, is amended by striking out ``region'' 
and inserting in lieu thereof ``district''.
    (b) Allocation of Funds.--(1) Section 2415 of title 10, United 
States Code, is repealed.
    (2) The table of sections at the beginning of chapter 142 of such 
title is amended by striking the item relating to section 2415.

SEC. 805. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    (a) Short Title.--This section may be cited as the ``Defense 
Commercial Pricing Management Improvement Act of 1998''.
    (b) Commercial Items Exempt From Cost or Pricing Data Certification 
Requirements.--For the purposes of this section, the term ``exempt 
item'' means a commercial item that is exempt under subsection 
(b)(1)(B) of section 2306a of title 10, United States Code, from the 
requirements for submission of certified cost or pricing data under 
that section.
    (c) Commercial Pricing Regulations.--(1) The Secretary of Defense, 
in consultation with the Administrator for Federal Procurement Policy, 
shall prescribe regulations that clarify the procedures and methods to 
be used for determining the reasonableness of prices of exempt items.
    (2) The regulations shall, at a minimum, provide specific guidance 
on--
            (A) the appropriate application and precedence of such 
        price analysis tools as catalog-based pricing, market-based 
        pricing, historical pricing, parametric pricing, and value 
        analysis;
            (B) the circumstances under which contracting officers 
        should require offerors of exempt items to provide--
                    (i) uncertified cost or pricing data; or
                    (ii) information on prices at which the offeror has 
                previously sold the same or similar items;
            (C) the role and responsibility of Department of Defense 
        support organizations, such as the Defense Contract Audit 
        Agency, in procedures for determining price reasonableness; and
            (D) the meaning and appropriate application of the term 
        ``purposes other than governmental purposes'' in section 4(12) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        403(12)).
    (3) This subsection shall cease to be effective one year after the 
date on which final regulations prescribed pursuant to paragraph (1) 
take effect.
    (d) Unified Management of Procurement of Exempt Commercial Items.--
The Secretary of Defense shall develop and implement procedures to 
ensure that, to the maximum extent that is practicable and consistent 
with the efficient operation of the Department of Defense, a single 
item manager or contracting officer is responsible for negotiating and 
entering into all contracts for the procurement of exempt items from a 
single contractor.
    (e) Commercial Price Trend Analysis.--(1) The Secretary of Defense 
shall develop and implement procedures that, to the maximum extent that 
is practicable and consistent with the efficient operation of the 
Department of Defense, provide for the collection and analysis of 
information on price trends for categories of exempt items described in 
paragraph (2).
    (2) A category of exempt items referred to in paragraph (1) 
consists of exempt items--
            (A) that are in a single Federal Supply Group or Federal 
        Supply Class, are provided by a single contractor, or are 
        otherwise logically grouped for the purpose of analyzing 
        information on price trends; and
            (B) for which there is a potential for the price paid to be 
        significantly higher (on a percentage basis) than the prices 
        previously paid in procurements of the same or similar items 
        for the Department of Defense, as determined by the head of the 
        procuring Department of Defense agency or the Secretary of the 
        procuring military department on the basis of criteria 
        prescribed by the Secretary of Defense.
    (3) The head of a Department of Defense agency or the Secretary of 
a military department shall take appropriate action to address any 
unreasonable escalation in prices being paid for items procured by that 
agency or military department as identified in an analysis conducted 
pursuant to paragraph (1).
    (4)(A) Not later than 180 days after the date of the enactment of 
this Act, the Under Secretary of Defense for Acquisition and Technology 
shall submit to the congressional defense committees a report 
describing the procedures prescribed under paragraph (1), including a 
description of the criteria established for the selection of categories 
of exempt items for price trend analysis.
    (B) Not later than April 1 of each of fiscal years 2000, 2001, and 
2002, the Under Secretary of Defense for Acquisition and Technology 
shall submit to the congressional defense committees a report on the 
analyses of price trends that were conducted for categories of exempt 
items during the preceding fiscal year under the procedures prescribed 
pursuant to paragraph (1). The report shall include a description of 
the actions taken to identify and address any unreasonable price 
escalation for the categories of items.
    (f) Secretary of Defense To Act Through Under Secretary of Defense 
for Acquisition and Technology.--The Secretary of Defense shall act 
through the Under Secretary of Defense for Acquisition and Technology 
to carry out subsections (d) and (e).

SEC. 806. DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER AGENCIES.

    (a) Extension of Regulations.--Not later than three months after 
the date of the enactment of this Act, the Secretary of Defense shall 
revise the regulations issued pursuant to section 844 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
Stat. 1720; 31 U.S.C. 1535 note) to cover all purchases of goods and 
services by the Department of Defense under contracts entered into or 
administered by any other agency pursuant to the authority of section 
2304a of title 10, United States Code, or section 303H of the Federal 
Property and Administrative Services Act (41 U.S.C. 253h).
    (b) Termination.--This section shall cease to be effective 1 year 
after the date on which final regulations prescribed pursuant to 
subsection (a) take effect.

SEC. 807. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY STRUCTURE BY 
              UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND 
              TECHNOLOGY.

    Section 1702 of title 10, United States Code, is amended by adding 
at the end the following: ``The Under Secretary shall prescribe 
policies and requirements for the educational programs of the defense 
acquisition university structure established under section 1746 of this 
title.''.

SEC. 808. REPEAL OF REQUIREMENT FOR DIRECTOR OF ACQUISITION EDUCATION, 
              TRAINING, AND CAREER DEVELOPMENT TO BE WITHIN THE OFFICE 
              OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND 
              TECHNOLOGY.

    Section 1703 of title 10, United States Code, is amended by 
striking out ``within the office of the Under Secretary''.

SEC. 809. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE FOR 
              MEMBERSHIP IN AN ACQUISITION CORPS.

    Section 1732(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) Paragraph (1) of subsection (b) shall not apply to an 
employee who--
            ``(A) having previously served in a position within a grade 
        referred to in subparagraph (A) of that paragraph, is currently 
        serving in the same position within a grade below GS-13, or in 
        another position within that grade, by reason of a reduction in 
        force or the closure or realignment of a military installation, 
        or for any other reason other by reason of an adverse personnel 
        action for cause; and
            ``(B) except as provided in paragraphs (1) and (2), 
        satisfies the educational, experience, and other requirements 
        prescribed under paragraphs (2), (3), and (4) of that 
        subsection.''.

SEC. 810. PILOT PROGRAMS FOR TESTING PROGRAM MANAGER PERFORMANCE OF 
              PRODUCT SUPPORT OVERSIGHT RESPONSIBILITIES FOR LIFE CYCLE 
              OF ACQUISITION PROGRAMS.

    (a) Designation of Pilot Programs.--The Secretary of Defense, 
acting through the Secretaries of the military departments, shall 
designate 10 acquisition programs of the military departments as pilot 
programs on program manager responsibility for product support.
    (b) Responsibilities of Program Managers.--The program manager for 
each acquisition program designated as a pilot program under this 
section shall have the responsibility for ensuring that the product 
support functions for the program are properly carried out over the 
entire life cycle of the program.
    (c) Report.--Not later than February 1, 1999, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the pilot programs. The report shall contain the following:
            (1) A description of the acquisition programs designated as 
        pilot programs under subsection (a).
            (2) For each such acquisition program, the specific 
        management actions taken to ensure that the program manager has 
        the responsibility for oversight of the performance of the 
        product support functions.
            (3) Any proposed change to law, policy, regulation, or 
        organization that the Secretary considers desirable, and 
        determines feasible to implement, for ensuring that the program 
        managers are fully responsible under the pilot programs for the 
        performance of all such responsibilities.

SEC. 811. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371(i)(2)(A) of title 10, United States Code, is amended 
by striking out ``cooperative agreement that includes a clause 
described in subsection (d)'' and inserting in lieu thereof 
``cooperative agreement for performance of basic, applied, or advanced 
research authorized by section 2358 of this title''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

SEC. 901. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE 
              POSITIONS.

    (a) Nine Positions.--Section 138(a) of title 10, United States 
Code, is amended by striking out ``ten'' and insert in lieu thereof 
``nine''.
    (b) Conforming Amendment.--The item relating to the Assistant 
Secretaries of Defense in section 5315 of title 5, United States Code, 
is amended to read as follows:
            ``Assistant Secretaries of Defense (9).''.

SEC. 902. RENAMING OF POSITION OF ASSISTANT SECRETARY OF DEFENSE FOR 
              COMMAND, CONTROL, COMMUNICATIONS, AND INTELLIGENCE.

    Section 138(b)(3) of title 10, United States Code is amended to 
read as follows:
    ``(3) One of the Assistant Secretaries shall be the Assistant 
Secretary of Defense for Space and Information Superiority. The 
Assistant Secretary--
            ``(A) shall have as his principal duty the overall 
        supervision of the functions of the Department of Defense that 
        relate to space, intelligence, information security, 
        information operations, command, control, communications, 
        computers, surveillance, reconnaissance, and electromagnetic 
        spectrum; and
            ``(B) shall be the Chief Information Officer of the 
        Department of Defense.''.

SEC. 903. AUTHORITY TO EXPAND THE NATIONAL DEFENSE UNIVERSITY.

    Section 2165(b) of title 10, United States Code, is amended by 
adding at the end the following:
            ``(7) Any other educational institution of the Department 
        of Defense that the Secretary considers appropriate and 
        designates as an institution of the university.''.

SEC. 904. REDUCTION IN DEPARTMENT OF DEFENSE HEADQUARTERS STAFF.

    (a) Reduction Required.--(1) The Secretary of Defense shall reduce 
the number of Federal Government employees and members of the Armed 
Forces on the headquarters staffs of Department of Defense 
organizations in accordance with this section. The Secretary shall 
achieve the required reductions not later than September 30, 2003.
    (2) The total number of Federal Government employees and members of 
the Armed Forces on the headquarters staffs of all organizations within 
a category of organizations described in paragraph (4) shall be reduced 
below the baseline number for the category by the percentage specified 
for the category in that paragraph. In the administration of this 
section, the number of employees employed on a basis other than a full 
time basis shall be converted to, and expressed as, the equivalent 
number of full time employees.
    (3) For the purposes of this subsection, the baseline number for 
the organizations in a category is the total number of Federal 
Government employees and members of the Armed Forces on the 
headquarters staffs of those organizations on October 1, 1996.
    (4) The categories of organizations, and the percentages applicable 
under paragraph (1) to the organizations in such categories, are as 
follows:
            (A) The Office of the Secretary of Defense and associated 
        activities, a reduction of 33 percent.
            (B) Defense agencies, a reduction of 21 percent.
            (C) Department of Defense field activities and other 
        operating organizations reporting to the Office of the 
        Secretary of Defense, a reduction of 36 percent.
            (D) The Joint Staff and associated activities, a reduction 
        of 29 percent.
            (E) The headquarters of the combatant commands and 
        associated activities, a reduction of 7 percent.
            (F) Other headquarters elements (including the headquarters 
        of the military departments and their major commands) and 
        associated activities, a reduction of 29 percent.
    (b) Limited Relief From Prohibition on Managing by End-Strength.--
(1) The Secretary may waive the requirements and restrictions of 
section 129 of title 10, United States Code, for an organization or 
activity covered by subsection (a) to the extent that the Secretary 
determines necessary to achieve the personnel reductions required by 
that subsection.
    (2) Not later than 30 days after exercising the waiver authority 
under paragraph (1) in the case of an organization or activity, the 
Secretary shall notify the congressional defense committees of the 
scope and duration of the waiver and the reasons for granting the 
waiver.
    (c) Management by Budget.--(1) The Secretary shall waive the 
requirement under subsection (a) to reduce the number of personnel on 
the headquarters staff of an organization or activity if the Secretary 
determines that the budget authority available for the organization or 
activity for fiscal year 2003 has been reduced below the budget 
authority available for the organization or activity for fiscal year 
1996 by at least the percentage equal to one-fifth of the percentage 
specified in subsection (a)(4) for the category of the organization or 
activity.
    (2) In this subsection, the term ``budget authority'' has the 
meaning given that term in section 3(2)(A) of the Congressional Budget 
Act of 1974 (2 U.S.C. 622(2)(A)).
    (d) Joint and Defense-Wide Activities.--If the Secretary 
consolidates functions in a Department of Defense-wide or joint 
organization or activity described in subparagraph (A), (B), (C), (D), 
or (E) of subsection (a)(4) in order to meet the requirement for 
reduction in the personnel of the other headquarters (including the 
headquarters of the military departments and their major commands) 
referred to in subparagraph (F) of such subsection, the Secretary may 
apply to that organization or activity, instead of the percentage that 
would otherwise apply under such subsection, a lesser percentage that 
is appropriate to reflect the increased responsibilities of the 
organization or activity.
    (e) Report.--Not later than March 1, 1999, the Secretary of Defense 
shall submit to the congressional defense committees a report 
containing a plan to implement the personnel reductions required by 
this section.
    (f) Categories Defined.--In this section:
            (1) The term ``Office of the Secretary of Defense and 
        associated activities'' means the following organizations and 
        activities:
                    (A) The Office of the Secretary of Defense, as 
                defined in section 131 of title 10, United States Code.
                    (B) The defense support activities that perform 
                technical and analytical support for the Office of the 
                Secretary of Defense.
            (2) The term ``defense agencies'' means the following 
        organizations and activities:
                    (A) The Ballistic Missile Defense Organization.
                    (B) The Defense Advanced Research Projects Agency.
                    (C) The Defense Commissary Agency.
                    (D) The Defense Contract Audit Agency.
                    (E) The Defense Finance and Accounting Services.
                    (F) The Defense Information Systems Agency.
                    (G) The Defense Legal Services Agency.
                    (H) The Defense Logistics Agency.
                    (I) The Defense Security Assistance Agency.
                    (J) The Defense Security Service.
                    (K) The Defense Special Weapons Agency.
                    (L) The On-Site Inspection Agency.
                    (M) The Treaty Compliance and Threat Reduction 
                Agency.
            (3) The term ``Department of Defense field activities and 
        other operating organizations reporting to the Office of the 
        Secretary of Defense'' means the following organizations and 
        activities:
                    (A) The American Forces Information Service.
                    (B) The TRICARE Support Office.
                    (C) The Office of Economic Adjustment.
                    (D) The Department of Defense Education Activity.
                    (E) Washington Headquarters Services.
                    (F) The Department of Defense Human Resources 
                Activity.
                    (G) The Defense Prisoner of War/Missing Personnel 
                Office.
                    (H) The Defense Medical Programs Activity.
                    (I) The Defense Technology Security Administration.
                    (J) The C4I Support Activity.
                    (K) The Plans and Program Analysis Support Center.
                    (L) The Defense Airborne Reconnaissance Office.
                    (M) The Defense Acquisition University.
                    (N) The Director of Military Support.
                    (O) The Defense Technical Information Center.
                    (P) The National Defense University.
            (4) The term ``Joint Staff and associated activities'' 
        means the following organizations and activities:
                    (A) The Joint Staff referred to in section 155 of 
                title 10, United States Code.
                    (B) Department of Defense activities that are 
                controlled by the Chairman of the Joint Chiefs of Staff 
                and report directly to the Joint Staff.
            (5) The term ``headquarters of the combatant commands'' 
        means the headquarters of the combatant commands, as defined in 
        section 161(c)(3) of title 10, United States Code.
            (6) The term ``other headquarters elements (including the 
        headquarters of the military departments and their major 
commands)'' means the following organizations and activities:
                    (A) The military department headquarters listed and 
                defined in Department of Defense Directive 5100.73, 
                ``Department of Defense Management Headquarters and 
                Headquarters Support Activities'', as in effect on 
                November 12, 1996.
                    (B) Other military headquarters elements defined in 
                such directive that are not otherwise covered by 
                paragraphs (1), (2), (3), (4), and (5).
    (g) Repeal of Superseded Provisions.--(1) Sections 130a and 194 of 
title 10, United States Code, are repealed.
    (2)(A) The table of sections at the beginning of chapter 3 of such 
title is amended by striking out the item relating to section 130a.
    (B) The table of sections at the beginning of chapter 8 of such 
title is amended by striking out the item relating to section 194.

SEC. 905. PERMANENT REQUIREMENT FOR QUADRENNIAL DEFENSE REVIEW.

    (a) Review Required.--Chapter 2 of title 10, United States Code, is 
amended by inserting after section 116 the following:
``Sec. 117. Quadrennial defense review
    ``(a) Review Required.--The Secretary of Defense, in consultation 
with the Chairman of the Joint Chiefs of Staff, shall conduct in each 
year in which a President is inaugurated a comprehensive examination of 
the defense strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of the defense program 
and policies with a view toward determining and expressing the defense 
strategy of the United States and establishing a revised defense plan 
for the ensuing 10 years and a revised defense plan for the ensuing 20 
years.
    ``(b) Consideration of Reports of National Defense Panel.--In 
conducting the review, the Secretary shall take into consideration the 
reports of the National Defense Panel submitted under section 181(d) of 
this title.
    ``(c) Report to Congress.--The Secretary shall submit a report on 
each review to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives not 
later than September 30 of the year in which the review is conducted. 
The report shall include the following:
            ``(1) The results of the review, including a comprehensive 
        discussion of the defense strategy of the United States and the 
        force structure best suited to implement that strategy.
            ``(2) The threats examined for purposes of the review and 
        the scenarios developed in the examination of such threats.
            ``(3) The assumptions used in the review, including 
        assumptions relating to the cooperation of allies and mission-
        sharing, levels of acceptable risk, warning times, and 
        intensity and duration of conflict.
            ``(4) The effect on the force structure of preparations for 
        and participation in peace operations and military operations 
        other than war.
            ``(5) The effect on the force structure of the utilization 
        by the Armed Forces of technologies anticipated to be available 
        for the ensuing 10 years and technologies anticipated to be 
        available for the ensuing 20 years, including precision guided 
        munitions, stealth, night vision, digitization, and 
        communications, and the changes in doctrine and operational 
        concepts that would result from the utilization of such 
        technologies.
            ``(6) The manpower and sustainment policies required under 
        the defense strategy to support engagement in conflicts lasting 
        more than 120 days.
            ``(7) The anticipated roles and missions of the reserve 
        components in the defense strategy and the strength, 
        capabilities, and equipment necessary to assure that the 
        reserve components can capably discharge those roles and 
        missions.
            ``(8) The appropriate ratio of combat forces to support 
        forces (commonly referred to as the ``tooth-to-tail'' ratio) 
        under the defense strategy, including, in particular, the 
        appropriate number and size of headquarter units and Defense 
        Agencies for that purpose.
            ``(9) The air-lift and sea-lift capabilities required to 
        support the defense strategy.
            ``(10) The forward presence, pre-positioning, and other 
        anticipatory deployments necessary under the defense strategy 
        for conflict deterrence and adequate military response to 
        anticipated conflicts.
            ``(11) The extent to which resources must be shifted among 
        two or more theaters under the defense strategy in the event of 
        conflict in such theaters.
            ``(12) The advisability of revisions to the Unified Command 
        Plan as a result of the defense strategy.
            ``(13) Any other matter the Secretary considers 
        appropriate.''.
    (b) National Defense Panel.--Chapter 7 of such title is amended by 
adding at the end the following:
``Sec. 181. National Defense Panel
    ``(a) Establishment.--Not later than January 1 of each year 
immediately preceding a year in which a President is to be inaugurated, 
the Secretary of Defense shall establish a nonpartisan, independent 
panel to be known as the National Defense Panel. The Panel shall have 
the duties set forth in this section.
    ``(b) Membership.--The Panel shall be composed of a chairman and 
eight other individuals appointed by the Secretary, in consultation 
with the chairman and ranking member of the Committee on Armed Services 
of the Senate and the chairman and ranking member of the Committee on 
National Security of the House of Representatives, from among 
individuals in the private sector who are recognized experts in matters 
relating to the national security of the United States.
    ``(c) Duties.--The Panel shall--
            ``(1) conduct and submit to the Secretary of Defense and to 
        the Committee on Armed Services of the Senate and the Committee 
        on National Security of the House of Representatives a 
        comprehensive assessment of the defense strategy, force 
        structure, force modernization plans, infrastructure, budget 
        plan, and other elements of the defense program and policies 
        with a view toward recommending a defense strategy of the 
        United States and a revised defense plan for the ensuing 10 
        years and a revised defense plan for the ensuing 20 years; and
            ``(2) identify issues that the Panel recommends for 
        assessment during the next review to be conducted under section 
        117 of this title.
    ``(d) Report.--(1) The Panel, in the year that it is conducting an 
assessment under subsection (c), shall submit to the Secretary of 
Defense and to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives two 
reports on its activities and the findings and recommendations of the 
Panel, including any recommendations for legislation that the Panel 
considers appropriate, as follows:
            ``(A) An interim report not later than July 1 of the year.
            ``(B) A final report not later than December 1 of the year.
    ``(2) Not later than December 15 of the year in which the Secretary 
receive a final report under paragraph (1)(B), the Secretary shall 
submit to the committees referred to in subsection (b) a copy of the 
report together with the Secretary's comments on the report.
    ``(e) Information From Federal Agencies.--The Panel may secure 
directly from the Department of Defense and any of its components and 
from any other Federal department and agency such information as the 
Panel considers necessary to carry out its duties under this section. 
The head of the department or agency concerned shall ensure that 
information requested by the Panel under this subsection is promptly 
provided.
    ``(f) Personnel Matters.--(1) Each member of the Panel shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5 for each day (including travel time) during 
which the member is engaged in the performance of the duties of the 
Panel.
    ``(2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5 while 
away from their homes or regular places of business in the performance 
of services for the Panel.
    ``(3)(A) The chairman of the Panel may, without regard to the civil 
service laws and regulations, appoint and terminate an executive 
director and a staff if the Panel determines that an executive director 
and staff are necessary in order for the Panel to perform its duties 
effectively. The employment of an executive director shall be subject 
to confirmation by the Panel.
    ``(B) The chairman may fix the compensation of the executive 
director without regard to the provisions of chapter 51 and subchapter 
III of chapter 53 of title 5 relating to classification of positions 
and General Schedule pay rates, except that the rate of pay for the 
executive director may not exceed the rate payable for level V of the 
Executive Schedule under section 5316 of such title.
    ``(4) Any Federal Government employee may be detailed to the Panel 
without reimbursement of the employee's agency, and such detail shall 
be without interruption or loss of civil service status or privilege. 
The Secretary shall ensure that sufficient personnel are detailed to 
the Panel to enable the Panel to carry out its duties effectively.
    ``(5) To the maximum extent practicable, the members and employees 
of the Panel shall travel on military aircraft, military ships, 
military vehicles, or other military conveyances when travel is 
necessary in the performance of a duty of the Panel, except that no 
such aircraft, ship, vehicle, or other conveyance may be scheduled 
primarily for the transportation of any such member or employee when 
the cost of commercial transportation is less expensive.
    ``(g) Administrative Provisions.--(1) The Panel may use the United 
States mails and obtain printing and binding services in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    ``(2) The Secretary shall furnish the Panel any administrative and 
support services requested by the Panel.
    ``(3) The Panel may accept, use, and dispose of gifts or donations 
of services or property.
    ``(h) Payment of Panel Expenses.--The compensation, travel 
expenses, and per diem allowances of members and employees of the Panel 
shall be paid out of funds available to the Department of Defense for 
the payment of compensation, travel allowances, and per diem 
allowances, respectively, of civilian employees of the Department. The 
other expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    ``(i) Termination.--The Panel shall terminate at the end of the 
year following the year in which the Panel submits its final report 
under subsection (d)(1)(B). For the period that begins 90 days after 
the date of submittal of the report, the activities and staff of the 
panel shall be reduced to a level that the Secretary of Defense 
considers sufficient to continue the availability of the panel for 
consultation with the Secretary of Defense and with the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives.''.
    (c) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 2 of title 10, United States Code, is amended by 
inserting after the item relating to section 116 the following:

``117. Quadrennial defense review.''.
    (2) The table of sections at the beginning of chapter 7 of such 
title is amended by adding at the end the following:

``181. National Defense Panel.''.
    (d) Continuation of 1997 National Defense Panel.--Section 924(j) of 
the Military Force Structure Review Act of 1996 (subtitle B of title IX 
of Public Law 104-201; 110 Stat. 2626; 10 U.S.C. 111 note) is amended 
to read as follows:
    ``(j) Termination.--The Panel shall continue until the first 
National Defense Panel is established under section 181(a) of title 10, 
United States Code, and shall then terminate. The activities and staff 
of the panel shall be reduced to a level that the Secretary of Defense 
considers sufficient to continue the availability of the panel for 
consultation with the Secretary of Defense and with the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives.''.

SEC. 906. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST, AND 
              EVALUATION.

    (a) Requirements for Analysis and Plan.--(1) The Secretary of 
Defense, acting through the Under Secretary of Defense for Acquisition 
and Technology, shall analyze the structures and processes of the 
Department of Defense for management of its laboratories and test and 
evaluation centers and, taking into consideration the analysis, develop 
a plan for improving the management of the laboratories and centers. 
The plan shall include the reorganizations and reforms that the 
Secretary considers appropriate.
    (2) The analysis shall include the following:
            (A) Opportunities to achieve efficiency and reduce 
        duplication of efforts by consolidating responsibilities for 
        research, development, test, and evaluation, by area or 
        function, in a military department as a lead agency or 
        executive agent.
            (B) Reforms of the management processes of Department of 
        Defense laboratories and test and evaluation centers that would 
        reduce costs and increase efficiency in the conduct of 
        research, development, test, and evaluation.
            (C) Opportunities for Department of Defense laboratories 
        and test and evaluation centers to enter into partnership 
        arrangements with laboratories in industry, academia, and other 
        Federal agencies that demonstrate leadership, initiative, and 
        innovation in research, development, test, and evaluation.
            (D) The benefits of consolidating test ranges and test 
        facilities under one management structure.
            (E) Personnel demonstration projects and pilot projects 
        that are being carried out to address the challenges for and 
        constraints on recruitment and retention of scientists and 
        engineers.
            (F) The extent to which there is disseminated within the 
        Department of Defense laboratories and test and evaluation 
        centers information regarding initiatives that have 
        successfully improved efficiency through reform of management 
        processes and other means.
            (G) Any cost savings that can be derived directly from 
        reorganization of management structures.
            (H) Options for reinvesting any such cost savings in the 
        Department of Defense laboratories and test and evaluation 
        centers.
    (3) The Secretary shall submit the plan required under paragraph 
(1) to the congressional defense committees not later than 180 days 
after the date of the enactment of this Act.
    (b) Cost-Based Management Information System.--(1) The Secretary of 
Defense shall develop a plan, including a schedule, for establishing a 
cost-based management information system for Department of Defense 
laboratories and test and evaluation centers. The system shall provide 
for accurately identifying and comparing the costs of operating each 
laboratory and each center.
    (2) In preparing the plan, the Secretary shall assess the 
feasibility and desirability of establishing a common methodology for 
assessing costs. The Secretary shall consider the use of a revolving 
fund as one potential methodology.
    (3) The Secretary shall submit the plan required under paragraph 
(1) to the congressional defense committees not later than 90 days 
after the date of the enactment of this Act.

SEC. 907. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

    (a) Administration as Nonappropriated Fund Instrumentality.--(1) 
Chapter 147 of title 10, United States Code, is amended by adding at 
the end the following:
``Sec. 2490b. Fisher Houses: administration as nonappropriated fund 
              instrumentality
    ``(a) Fisher Houses and Suites.--(1) For the purposes of this 
section, a Fisher House is a housing facility that--
            ``(A) is located in proximity to a health care facility of 
        the Army, the Air Force, or the Navy;
            ``(B) is available for residential use on a temporary basis 
        by patients of that health care facility, members of the 
        families of such patients, and others providing the equivalent 
        of familial support for such patients; and
            ``(C) has been constructed and donated by--
                    ``(i) the Zachary and Elizabeth M. Fisher Armed 
                Services Foundation; or
                    ``(ii) another source, if the Secretary designates 
                the housing facility as a Fisher House.
    ``(2) For the purposes of this section, a Fisher Suite is one or 
more rooms that meet the requirements of subparagraph (A) and (B) of 
paragraph (1), are constructed, altered, or repaired and donated by a 
source described in subparagraph (C) of that paragraph, and are 
designated by the Secretary concerned as a Fisher Suite.
    ``(b) Nonappropriated Fund Instrumentality.--The Secretary of a 
military department shall administer all Fisher Houses and Fisher 
Suites associated with health care facilities of that military 
department as a nonappropriated fund instrumentality of the United 
States.
    ``(c) Governance.--The Secretary shall establish a system for the 
governance of the nonappropriated fund instrumentality.
    ``(d) Central Fund.--The Secretary shall establish a single fund as 
the source of funding for the operation, maintenance, and improvement 
of all Fisher Houses and Fisher Suites of the nonappropriated fund 
instrumentality.
    ``(e) Acceptance of Contributions and Fees.--The Secretary of a 
military department may accept money, property, and services donated 
for the support of a Fisher House or Fisher Suite, and may impose fees 
relating to the use of the Fisher Houses and Fisher Suites. All 
monetary donations, and the proceeds of the disposal of any other 
donated property, accepted by the Secretary under this subsection shall 
be credited to the fund established under subsection (d) for the Fisher 
Houses and Fisher Suites of that military department and shall be 
available for all Fisher Houses and Fisher Suites of that military 
department.
    ``(f) Annual Report.--Not later than January 15 of each year, the 
Secretary of each military department shall submit a report on Fisher 
House operations to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of Representatives. The 
report shall include, at a minimum, the following:
            ``(1) The amount in the fund established by the Secretary 
        for the Fisher Houses and Fisher Suites under subsection (d), 
        as of October 1 of the previous year.
            ``(2) The operation of the fund during the fiscal year 
        ending on the day before that date, including--
                    ``(A) all gifts, fees, and interest credited to the 
                fund; and
                    ``(B) the disbursements from the fund.
            ``(3) The budget for the operation of the Fisher Houses and 
        Fisher Suites for the fiscal year in which the report is 
        submitted.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2490b. Fisher Houses: administration as nonappropriated fund 
                            instrumentality.''.
    (b) Funding Transition.--(1) Not later than 90 days after the date 
of the enactment of this Act the Secretary of each military department 
shall--
            (A) establish the fund required under section 2490b(d) of 
        title 10, United States Code (as added by subsection (a)); and
            (B) close the Fisher House trust fund for that department 
        and transfer the amounts in the closed fund to the newly 
        established fund.
    (2) Of the amounts appropriated for the Navy pursuant to section 
301, the Secretary of the Navy shall transfer to the fund established 
by the Secretary under section 2490b(d) of title 10, United States Code 
(as added by subsection (a)) such amount as the Secretary considers 
appropriate for establishing in the fund a corpus sufficient for 
operating Fisher Houses and Fisher Suites of the Navy.
    (3) Of the amounts appropriated for the Air Force pursuant to 
section 301, the Secretary of the Air Force shall transfer to the fund 
established by the Secretary under section 2490b(d) of title 10, United 
States Code (as added by subsection (a)) such amount as the Secretary 
considers appropriate for establishing in the fund a corpus sufficient 
for operating Fisher Houses and Fisher Suites of the Air Force.
    (4) The Secretary of each military department, upon completing the 
actions required of the Secretary under the preceding paragraphs of 
this subsection, shall submit to Congress a report containing--
            (A) the Secretary's certification that those actions have 
        been completed; and
            (B) a statement of the amount deposited in the newly 
        established fund.
    (5) Amounts transferred to a fund established under section 
2490b(d) of title 10, United States Code (as added by subsection (a)), 
shall be available without fiscal year limitation for the purposes for 
which the fund is established and shall be administered as 
nonappropriated funds.
    (c) Conforming Repeals.--(1) Section 2221 of title 10, United 
States Code, and the item relating to that section in the table of 
sections at the beginning of chapter 131 of such title, are repealed.
    (2) Section 1321(a) of title 31, United States Code, is amended by 
striking out paragraphs (92), (93), and (94).
    (3) The amendments made by paragraphs (1) and (2) shall take effect 
90 days after the date of the enactment of this Act.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 1999 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR FISCAL YEAR 
              1999.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for the Department of Defense for fiscal year 1999 
for incremental costs of operations of the Armed Forces in and around 
Bosnia and Herzegovina in the total amount of $1,858,600,000, as 
follows:
            (1) For military personnel, in addition to the amounts 
        authorized to be appropriated in title IV of this Act:
                    (A) For the Army, $297,700,000.
                    (B) For the Navy, $9,700,000.
                    (C) For the Marine Corps, $2,700,000.
                    (D) For the Air Force, $33,900,000.
                    (E) For the Naval Reserve, $2,200,000.
            (2) For operation and maintenance for the Overseas 
        Contingency Operations Transfer Fund, in addition to the total 
        amount authorized to be appropriated for that fund in section 
        301(a)(25) of this Act, $1,512,400,000.
    (b) Transfer Authority.--Upon determination by the Secretary of 
Defense that such action is necessary in the national interest, the 
Secretary may transfer amounts of authorizations made available to the 
Department of Defense in subsection (a)(2) for fiscal year 1999 to any 
of the authorizations for that fiscal year in section 301. Amounts of 
authorizations so transferred shall be merged with and be available for 
the same purposes as the authorization to which transferred. The 
transfer authority under this subsection is in addition to any other 
transfer authority provided in this Act.
    (c) Designation as Emergency.--Funds authorized to be appropriated 
in accordance with subsection (a) are designated as emergency 
requirements pursuant to section 251(b)(2)(A) of the Balanced Budget 
and Emergency Deficit Control Act of 1985.

SEC. 1003. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
              FOR FISCAL YEAR 1998.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1998 in the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in the 1998 
Supplemental Appropriations and Rescissions Act (Public Law 105-174).

SEC. 1004. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.

    Funds authorized to be appropriated under titles II and III of this 
Act shall be available for Partnership for Peace information management 
systems as follows:
            (1) Of the amount authorized to be appropriated under 
        section 201(4) for Defense-wide activities, $2,000,000.
            (2) Of the amount authorized to be appropriated under 
        section 301 for Defense-wide activities, $3,000,000.

                       Subtitle B--Naval Vessels

SEC. 1011. IOWA CLASS BATTLESHIP RETURNED TO NAVAL VESSEL REGISTER.

    The U.S.S. Iowa shall be listed, and maintained, on the Naval 
Vessel Register under section 1011 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
421) instead of the U.S.S. New Jersey, which shall be stricken from the 
register. The preceding sentence does not affect the continued 
effectiveness of subsection (d) of such section.

SEC. 1012. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF SUBMARINE 
              RESCUE, ESCORT, AND TOWING.

    (a) Authority.--The Secretary of the Navy may enter into one or 
more long-term charters in accordance with section 2401 of title 10, 
United States Code, for three vessels to support the rescue, escort, 
and towing of submarines.
    (b) Vessels and Periods.--The vessels that may be chartered, and 
the periods for which the vessels may be chartered, under subsection 
(a) are as follows:
            (1) The Carolyn Chouest (United States official number 
        D102057), for any period that ends before October 1, 2012.
            (2) The Kellie Chouest (United States official number 
        D1038519), for any period that ends before October 1, 2005.
            (3) The Dolores Chouest (United States official number 
        D600288), for any period that ends before October 1, 2005.
    (c) Condition on Charter of One Vessel.--The charter for the 
Carolyn Chouest shall include a clause that permits the United States 
to terminate the charter for the convenience of the United States 
without any liability for further payment (other than for unpaid 
amounts due under the charter for periods before the date of the 
termination) in the event that the need for the vessel under the 
charter terminates before the end of the charter period by reason of 
the decommissioning of a submarine research vessel supported under the 
charter.

SEC. 1013. TRANSFERS OF NAVAL VESSELS TO FOREIGN COUNTRIES.

    (a) Transfers by Grant.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a grant basis under section 
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
            (1) The tank landing ship Newport (LST 1179).
            (2) The civilian crewed ocean surveillance ship Assurance 
        (T-AGOS 5).
            (3) The frigates Hepburn (FF 1055), W.S. Simms (FF 1059), 
        Paul (FF 1080), and Miller (FF 1091).
    (b) Transfers by Sale.--The Secretary of the Navy is authorized to 
transfer vessels to foreign countries on a sales basis under section 21 
of the Arms Export Control Act (22 U.S.C. 2761) as follows:
            (1) The guided missile frigates Duncan (FFG 10), Tisdale 
        (FFG 27), and Reid (FFG 30).
            (2) The dock landing ship Pensacola (LSD 38).
            (3) The medium floating drydock Competent (AFDM 6).
            (4) The tank landing ship Peoria (LST 1183).
            (5) The civilian crewed ocean surveillance ship Triumph (T-
        AGOS 4).
            (6) The drydocks Waterford (ARD 5) and Alamagordo (ARDM 2).
            (7) The unnamed medium floating drydock bearing hull number 
        AFDM 2.
            (8) The auxiliary repair dock San Onofre (ARD 30).
    (c) Transfers by Lease or Sale.--The Secretary of the Navy is 
authorized to transfer vessels to foreign countries on a lease basis 
under section 61 of the Arms Export Control Act (22 U.S.C. 2796) or on 
a sales basis under section 21 of the Arms Export Control Act (22 
U.S.C. 2761) as follows:
            (1) The guided missile destroyers Kidd (DDG 993), Callaghan 
        (DDG 994), Scott (DDG 995) and Chandler (DDG 996).
            (2) The fleet oiler Merrimack (AO 179).
    (d) Financing for Transfers by Lease.--Section 23 of the Arms 
Export Control Act (22 U.S.C. 2763) may be used to provide financing 
for any transfer by lease under subsection (c) in the same manner as if 
such transfer were a procurement by the recipient nation of a defense 
article.
    (e) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by subsection (a), (b), or (c) 
shall be charged to the recipient (notwithstanding section 516(e)(1) of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case 
of a transfer authorized under subsection (a)).
    (f) Repair and Refurbishment in United States Shipyards.--The 
Secretary of the Navy shall require, as a condition of the transfer of 
a vessel under this section, that the country to which the vessel is 
transferred have such repair or refurbishment of the vessel as is 
needed, before the vessel joins the naval forces of that country, 
performed at a shipyard located in the United States, including a 
United States Navy shipyard.
    (g) Expiration of Authority.--The authority to transfer vessels 
under this section shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act, except that a lease 
entered into during that period under any provision of subsection (c) 
may be renewed.

       Subtitle C--Miscellaneous Report Requirements and Repeals

SEC. 1021. REPEAL OF REPORTING REQUIREMENTS.

    (a) Reports Required by Title 10.--
            (1) Health and medical care studies and demonstrations.--
        Section 1092(a) of title 10, United States Code, is amended by 
        striking out paragraph (3).
            (2) Annual report on use of money rentals for leases of 
        non-excess property.--Section 2667(d) of title 10, United 
        States Code, is amended--
                    (A) in paragraph (1)(A)(ii), by striking out 
                ``paragraph (4) or (5)'' and inserting in lieu thereof 
                ``paragraph (3) or (4)''.
                    (B) by striking out paragraph (3); and
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
    (b) Report Required by Military Construction Authorization Act.--
Section 2819 of the National Defense Authorization Act, Fiscal Year 
1989 (Public Law 100-456; 102 Stat. 2119; 10 U.S.C. 2391 note,), 
relating to the Commission on Alternative Utilization of Military 
Facilities, is amended--
            (1) in subsection (a) by striking out ``(a) Establishment 
        of Commission.--''; and
            (2) by striking out subsections (b) and (c).

SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT 
              IMPROVEMENT PLAN.

    Not later than 60 days after the date on which the Secretary of 
Defense submits the first biennial financial management improvement 
plan required by section 2222 of title 10, United States Code, the 
Comptroller General shall submit to Congress an analysis of the plan. 
The analysis shall include a discussion of the content of the plan and 
the extent to which the plan--
            (1) complies with the requirements of such section 2222; 
        and
            (2) is a workable plan for addressing the financial 
        management problems of the Department of Defense.

SEC. 1023. FEASIBILITY STUDY OF PERFORMANCE OF DEPARTMENT OF DEFENSE 
              FINANCE AND ACCOUNTING FUNCTIONS BY PRIVATE SECTOR 
              SOURCES OR OTHER FEDERAL GOVERNMENT SOURCES.

    (a) Study Required.--The Secretary of Defense shall carry out a 
study of the feasibility and advisability of selecting on a competitive 
basis the source or sources for performing the finance and accounting 
functions of the Department of Defense from among private sector 
sources, the Defense Finance and Accounting Service of the Department 
of Defense, the military departments, and other Federal Government 
agencies.
    (b) Report.--Not later than October 1, 1999, the Secretary shall 
submit a written report on the results of the study to Congress. The 
report shall include the following:
            (1) A discussion of how the finance and accounting 
        functions of the Department of Defense are performed, including 
        the necessary operations, the operations actually performed, 
        the personnel required for the operations, and the core 
        competencies that are necessary for the performance of those 
        functions.
            (2) A comparison of the performance of the finance and 
        accounting functions by the Defense Finance and Accounting 
        Service with the performance of finance and accounting 
        functions by the other sources referred to in subsection (a) 
        that exemplify the best finance and accounting practices and 
        results, together with a comparison of the costs of the 
        performance of such functions by the Defense Finance and 
        Accounting Service and the estimated costs of the performance 
        of such functions by those other sources.
            (3) The finance and accounting functions, if any, that are 
        appropriate for performance by those other sources, together 
        with a concept of operations that--
                    (A) specifies the mission;
                    (B) identifies the finance and accounting 
                operations to be performed;
                    (C) describes the work force that is necessary to 
                perform those operations;
                    (D) discusses where the operations are to be 
                performed;
                    (E) describes how the operations are to be 
                performed; and
                    (F) discusses the relationship between how the 
                operations are to be performed and the mission.
            (4) An analysis of how Department of Defense programs or 
        processes would be affected by the performance of the finance 
        and accounting functions of the Department of Defense by one or 
        more of those other sources.
            (5) The status of the efforts within the Department of 
        Defense to consolidate and eliminate redundant finance and 
        accounting systems and to better integrate the automated and 
        manual systems of the department that provide input to 
        financial management or accounting systems of the department.
            (6) A description of a feasible and effective process for 
        selecting, on a competitive basis, sources to perform the 
        finance and accounting functions of the Department of Defense 
        from among the sources referred to in subsection (a), including 
        a discussion of the selection criteria considered appropriate.
            (7) Any recommended policy for selecting sources to perform 
        the finance and accounting functions of the Department of 
        Defense on a competitive basis from among the sources referred 
        to in subsection (a), together with such other recommendations 
        that the Secretary considers appropriate.
            (8) An analysis of the costs and benefits of the various 
        policies and actions recommended.
            (9) A discussion of any findings, analyses, and 
        recommendations of the performance of the finance and 
        accounting functions of the Department of Defense that have 
        been made by the Task Force on Defense Reform appointed by the 
        Secretary of Defense.
    (c) Market Research.--In carrying out the study, the Secretary 
shall perform market research to determine whether the availability of 
responsible private sector sources of finance and accounting services 
is sufficient for there to be a reasonable expectation of meaningful 
competition for any contract for the procurement of finance and 
accounting services for the Department of Defense.

SEC. 1024. REORGANIZATION AND CONSOLIDATION OF OPERATING LOCATIONS OF 
              THE DEFENSE FINANCE AND ACCOUNTING SERVICE.

    (a) Limitation.--No operating location of the Defense Finance and 
Accounting Service may be closed before the date that is six months 
after the date on which the Secretary submits to Congress the plan 
required by subsection (b).
    (b) Plan Required.--The Secretary of Defense shall submit to 
Congress a strategic plan for improving the financial management 
operations at each of the operating locations of the Defense Finance 
and Accounting Service.
    (c) Content of Plan.--The plan shall include, at a minimum, the 
following:
            (1) The workloads that it is necessary to perform at the 
        operating locations each fiscal year.
            (2) The capacity and number of operating locations that are 
        necessary for performing the workloads.
            (3) A discussion of the costs and benefits that could 
        result from reorganizing the operating locations of the Defense 
        Finance and Accounting Service on the basis of function 
        performed, together with the Secretary's assessment of the 
        feasibility of carrying out such a reorganization.
    (d) Submittal of Plan.--The plan shall be submitted to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives not later than December 15, 
1998.

SEC. 1025. REPORT ON INVENTORY AND CONTROL OF MILITARY EQUIPMENT.

    (a) Report Required.--Not later than March 1, 1999, the Secretary 
of Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the inventory and control of the military 
equipment of the Department of Defense as of the end of fiscal year 
1998. The report shall address the inventories of each of the Army, 
Navy, Air Force, and Marine Corps separately.
    (b) Content.--The report shall include the following:
            (1) For each item of military equipment in the inventory, 
        stated by item nomenclature--
                    (A) the quantity of the item in the inventory as of 
                the beginning of the fiscal year;
                    (B) the quantity of acquisitions of the item during 
                the fiscal year;
                    (C) the quantity of disposals of the item during 
                the fiscal year;
                    (D) the quantity of losses of the item during the 
                performance of military missions during the fiscal 
                year; and
                    (E) the quantity of the item in the inventory as of 
                the end of the fiscal year.
            (2) A reconciliation of the quantity of each item in the 
        inventory as of the beginning of the fiscal year with the 
        quantity of the item in the inventory as of the end of fiscal 
        year.
            (3) For each item of military equipment that cannot be 
        reconciled--
                    (A) an explanation of why the quantities cannot be 
                reconciled; and
                    (B) a discussion of the remedial actions planned to 
                be taken, including target dates for accomplishing the 
                remedial actions.
            (4) Supporting schedules identifying the location of each 
        item that are available to Congress or auditors of the 
        Comptroller General upon request.
    (c) Military Equipment Defined.--For the purposes of this section, 
the term ``military equipment'' means all equipment that is used in 
support of military missions and is maintained on the visibility 
systems of the Army, Navy, Air Force, or Marine Corps.
    (d) Inspector General Review.--Not later than June 1, 1999, the 
Inspector General of the Department of Defense shall review the report 
submitted to the committees under subsection (a) and shall submit to 
the committees any comments that the Inspector General considers 
appropriate.

SEC. 1026. REPORT ON CONTINUITY OF ESSENTIAL OPERATIONS AT RISK OF 
              FAILURE BECAUSE OF COMPUTER SYSTEMS THAT ARE NOT YEAR 
              2000 COMPLIANT.

    (a) Report Required.--The Secretary of Defense and the Director of 
Central Intelligence shall jointly submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the plans of the Department of 
Defense and the intelligence community for ensuring the continuity of 
performance of essential operations that are at risk of failure because 
of computer systems and other information and support systems that are 
not year 2000 compliant.
    (b) Content.--The report shall contain, at a minimum, the 
following:
            (1) A prioritization of mission critical systems to ensure 
        that the most critical systems have the highest priority for 
        efforts to reprogram computers to be year 2000 compliant.
            (2) A discussion of the private and other public 
        information and support systems relied on by the national 
        security community, including the intelligence community, and 
        the efforts under way to ensure that those systems are year 
        2000 compliant.
            (3) The efforts under way to repair the underlying 
        operating systems and infrastructure.
            (4) The plans for comprehensive testing of Department of 
        Defense systems, including simulated operational tests in 
        mission areas.
            (5) A comprehensive contingency plan, for the entire 
        national security community, which provides for resolving 
        emergencies resulting from a system that is not year 2000 
        compliant and includes provision for the creation of crisis 
        action teams for use in resolving such emergencies.
            (6) A discussion of the efforts undertaken to ensure the 
        continued reliability of service on the systems used by the 
        President and other leaders of the United States for 
        communicating with the leaders of other nations.
            (7) A discussion of the vulnerability of allied armed 
        forces to failure systems that are not, or have critical 
        components that are not, year 2000 compliant, together with an 
        assessment of the potential problems for interoperability among 
        the Armed Forces of the United States and allied armed forces 
        because of the potential for failure of such systems.
            (8) An estimate of the total cost of making the computer 
        systems and other information and support systems comprising 
        the computer networks of the Department of Defense and the 
        intelligence community year 2000 compliant.
    (c) Submittal.--The report shall be submitted not later than March 
31, 1999, in classified form and, as necessary, unclassified form.
    (d) Year 2000 Compliant.--In this section, the term ``year 2000 
compliant'', with respect to a computer system or any other information 
or support system, means that the programs of the system correctly 
recognize dates in years after 1999 as being dates after 1999 for the 
purposes of program functions for which the correct date is relevant to 
the performance of the functions.

SEC. 1027. REPORTS ON NAVAL SURFACE FIRE-SUPPORT CAPABILITIES.

    (a) Navy Report.--(1) Not later than March 31, 1999, the Secretary 
of the Navy shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on battleship readiness for meeting 
requirements of the Armed Forces for naval surface fire support.
    (2) The report shall contain the following:
            (A) The reasons for the Secretary's failure to comply with 
        the requirements of section 1011 of the National Defense 
        Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
        Stat. 421) until February 1998.
            (B) The requirements for Air-Naval Gunfire Liaison 
        Companies.
            (C) The plans of the Navy for retaining and maintaining 16-
        inch ammunition for the main guns of battleships.
            (D) The plans of the Navy for retaining the hammerhead 
        crane essential for lifting battleship turrets.
            (E) An estimate of the cost of reactivating Iowa-class 
        battleships for listing on the Naval Vessel Register, restoring 
        the vessels to seaworthiness with operational capabilities 
        necessary to meet requirements for naval surface fire-support, 
        and maintaining the battleships in that condition for continued 
        listing on the register, together with an estimate of the time 
        necessary to reactivate and restore the vessels to that 
        condition.
    (3) The Secretary shall act through the Director of Expeditionary 
Warfare Division (N85) of the Office of the Chief of Naval Operations 
in preparing the report.
    (b) GAO Report.--(1) The Comptroller General shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the naval surface 
fire-support capabilities of the Navy.
    (2) The report shall contain the following:
            (A) An assessment of the extent of the compliance by the 
        Secretary of the Navy with the requirements of section 1011 of 
        the National Defense Authorization Act for Fiscal Year 1996 
        (Public Law 104-106; 110 Stat. 421).
            (B) The plans of the Navy for executing the naval surface 
        fire-support mission of the Navy.
            (C) An assessment of the short-term costs and the long-term 
        costs associated with the plans.
            (D) An assessment of the short-term costs and the long-term 
        costs associated with alternative methods for executing the 
        naval surface fire-support mission of the Navy, including the 
        alternative of reactivating two battleships.

SEC. 1028. REPORT ON ROLES IN DEPARTMENT OF DEFENSE AVIATION ACCIDENT 
              INVESTIGATIONS.

    (a) Report Required.--Not later than March 31, 1999, the Secretary 
of Defense shall submit to Congress a report on the roles of the Office 
of the Secretary of Defense and the Joint Staff in the investigation of 
Department of Defense aviation accidents.
    (b) Content of Report.--The report shall include the following:
            (1) An assessment of whether the Office of the Secretary of 
        Defense and the Joint Staff should have more direct involvement 
        in the investigation of military aviation accidents.
            (2) The advisability of the Office of the Secretary of 
        Defense, the Joint Staff, or another Department of Defense 
        entity independent of the military departments supervising the 
        conduct of aviation accident investigations.
            (3) An assessment of the minimum training and experience 
        required for aviation accident investigation board presidents 
        and board members.

SEC. 1029. STRATEGIC PLAN FOR EXPANDING DISTANCE LEARNING INITIATIVES.

    (a) Plan Required.--The Secretary of Defense shall develop a 
strategic plan for guiding and expanding distance learning initiatives 
within the Department of Defense. The plan shall provide for an 
expansion of such initiatives over five consecutive fiscal years 
beginning with fiscal year 2000.
    (b) Content of Plan.--The strategic plan shall, at a minimum, 
contain the following:
            (1) A statement of measurable goals and objectives and 
        outcome-related performance indicators (consistent with section 
        1115 of title 31, United States Code, relating to agency 
        performance plans) for the development and execution of 
        distance learning initiatives throughout the Department of 
        Defense.
            (2) A detailed description of how distance learning 
        initiatives are to be developed and managed within the 
        Department of Defense.
            (3) An assessment of the estimated costs and the benefits 
        associated with developing and maintaining an appropriate 
        infrastructure for distance learning.
            (4) A statement of planned expenditures for the investments 
        necessary to build and maintain the infrastructure.
            (5) A description of the mechanisms that are to be used to 
        supervise the development and coordination of the distance 
        learning initiatives of the Department of Defense.
    (c) Relationship to Existing Initiative.--In developing the 
strategic plan, the Secretary may take into account the ongoing 
collaborative effort among the Department of Defense, other Federal 
agencies, and private industry that is known as the Advanced 
Distribution Learning initiative. However, the Secretary shall ensure 
that the strategic plan is specifically focused on the training and 
education goals and objectives of the Department of Defense.
    (d) Submission to Congress.--The Secretary of Defense shall submit 
the strategic plan to Congress not later than March 1, 1999.

SEC. 1030. REPORT ON INVOLVEMENT OF ARMED FORCES IN CONTINGENCY AND 
              ONGOING OPERATIONS.

    (a) Report Required.--Not later than January 31, 1999, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the involvement of the Armed Forces of the 
United States in major contingency operations and major ongoing 
operations since the end of the Persian Gulf War, including such 
operations as the involvement in the Stabilization Force in Bosnia and 
Herzegovina, Operation Southern Watch, and Operation Northern Watch. 
The report shall contain the following:
            (1) A discussion of the effects of that involvement on 
        retention and reenlistment of personnel in the Armed Forces.
            (2) The extent to which the use of combat support and 
        combat service support personnel and equipment of the Armed 
        Forces in the operations has resulted in shortages of Armed 
        Forces personnel and equipment in other regions of the world.
            (3) The accounts from which funds have been drawn to pay 
        for the operations and the specific programs for which the 
        funds were available until diverted to pay for the operations.
            (4) The vital interests of the United States that are 
        involved in each operation or, if none, the interests of the 
        United States that are involved in each operation and a 
        characterization of those interests.
            (5) What clear and distinct objectives guide the activities 
        of United States forces in each operation.
            (6) What the President has identified on the basis of those 
        objectives as the date, or the set of conditions, that defines 
        the end of each operation.
    (b) Form of Report.--The report shall be submitted in unclassified 
form, but may also be submitted in a classified form if necessary.
    (c) Major Operation Defined.--For the purposes of this section, a 
contingency operation or an ongoing operation is a major contingency 
operation or a major ongoing operation, respectively, if the operation 
involves more than 500 members of the Armed Forces.

                       Subtitle D--Other Matters

SEC. 1041. COOPERATIVE COUNTERPROLIFERATION PROGRAM.

    (a) Assistance Authorized.--Subject to subsection (b), the 
Secretary of Defense may provide a foreign country or any of its 
instrumentalities with assistance that the Secretary determines 
necessary for destroying, removing, or obtaining from that country--
            (1) weapons of mass destruction; or
            (2) materials, equipment, or technology related to the 
        delivery or development of weapons of mass destruction.
    (b) Certification Required.--(1) Not later than 15 days before 
providing assistance under subsection (a) regarding weapons, materials, 
equipment, or technology referred to in that subsection, the Secretary 
of Defense shall certify to the congressional defense committees that 
the weapons, materials, equipment, or technology meet each of the 
following requirements:
            (A) The weapons, materials, equipment, or technology are at 
        risk of being sold or otherwise transferred to a restricted 
        foreign state or entity.
            (B) The transfer of the weapons, materials, equipment, or 
        technology would pose a significant threat to national security 
        interests of the United States or would significantly advance a 
        foreign country's weapon program that threatens national 
        security interests of the United States.
            (C) Other options for securing or otherwise preventing the 
        transfer of the weapons, materials, equipment, or technology 
        have been considered and rejected as ineffective or inadequate.
    (2) The Secretary may waive the deadline for submitting a 
certification required under paragraph (1) in any case if the Secretary 
determines that compliance with the requirement would compromise 
national security objectives of the United States in that case. The 
Secretary shall promptly notify the Chairman and ranking minority 
members of the congressional defense committees regarding the waiver 
and submit the certification not later than 45 days after completing 
the action of providing the assistance in the case.
    (3) No assistance may be provided under subsection (a) in any case 
unless the Secretary submits the certification required under paragraph 
(1) or a notification required under paragraph (2) in such case.
    (c) Annual Reports.--(1) Not later than January 30 of each year, 
the Secretary of Defense shall submit to the congressional defense 
committees a report on the activities carried out under this section. 
The first annual report shall be submitted not later than January 30, 
2000.
    (2) Each annual report shall set forth in separate sections for the 
previous year the following:
            (A) The assistance provided under this section and the 
        purposes for which provided.
            (B) The sources of funds for the assistance provided.
            (C) Any assistance provided for the Department of Defense 
        under this section by any other department or agency of the 
        Federal Government, together with the source or sources of that 
        assistance.
            (D) Any other information that the Secretary considers 
        appropriate for informing the appropriate congressional 
        committees about actions taken under this section.
    (d) Definitions.--In this section:
            (1) The term ``restricted foreign state or entity'', with 
        respect to weapons, materials, equipment, or technology covered 
        by a certification of the Secretary of Defense under subsection 
        (b), means--
                    (A) any foreign country the government of which has 
                repeatedly provided support for acts of international 
                terrorism, as determined by the Secretary of State 
                determines under section 620A of the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2371); or
                    (B) any foreign state or entity that the Secretary 
                of Defense determines would constitute a military 
                threat to the territory of the United States, national 
                security interests of the United States, or allies of 
                the United States, if that foreign state or entity were 
                to possess the weapons, materials, equipment, or 
                technology.
            (2) The term ``weapon of mass destruction'' has the meaning 
        given that term in section 1402 of the Defense Against Weapons 
        of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

SEC. 1042. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR SUPPORT OF 
              UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

    Section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(title XV of Public Law 102-484; 22 U.S.C. 5859a) is amended--
            (1) in subsection (d)(3), by striking out ``or $15,000,000 
        for fiscal year 1998'' and inserting in lieu thereof ``or 
        $15,000,000 for each of fiscal years 1998 and 1999''; and
            (2) in subsection (f), by striking out ``fiscal year 1998'' 
        and inserting in lieu thereof ``fiscal year 1999''.

SEC. 1043. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR 
              DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1948) is amended--
            (1) by striking out ``during fiscal year 1998'' each place 
        it appears and inserting in lieu thereof ``during any fiscal 
        year''; and
            (2) by adding at the end the following:
    ``(g) Applicability to Fiscal Years 1998 and 1999.--This section 
applies to fiscal years 1998 and 1999.''.

SEC. 1044. DIRECT-LINE COMMUNICATION BETWEEN UNITED STATES AND RUSSIAN 
              COMMANDERS OF STRATEGIC FORCES.

    (a) Sense of Congress.--It is the sense of Congress that a direct 
line of communication between the commanders in chief of the United 
States Strategic and Space Commands and the Commander of the Russian 
Strategic Rocket Forces could be a useful confidence-building tool.
    (b) Report.--Not later than two months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and to the Committee on 
National Security of the House of Representatives a report on the 
feasibility of initiating discussions on direct-line communication 
described in subsection (a).

SEC. 1045. CHEMICAL WARFARE DEFENSE.

    (a) Review and Modification of Policies and Doctrine.--The 
Secretary of Defense shall review the policies and doctrines of the 
Department of Defense on chemical warfare defense and modify the 
policies and doctrine as appropriate to achieve the objectives set 
forth in subsection (b).
    (b) Objectives.--The objectives for the modification of policies 
and doctrines of the Department of Defense on chemical warfare defense 
are as follows:
            (1) To provide for adequate protection of personnel from 
        any low-level exposure to a chemical warfare agent that would 
        endanger the health of exposed personnel because of the 
        deleterious effects of--
                    (A) a single exposure to the agent;
                    (B) exposure to the agent concurrently with other 
                dangerous exposures, such as exposures to--
                            (i) other potentially toxic substances in 
                        the environment, including pesticides, other 
                        insect and vermin control agents, and 
                        environmental pollutants;
                            (ii) low-grade nuclear and electromagnetic 
                        radiation present in the environment;
                            (iii) preventive medications (that are 
                        dangerous when taken concurrently with other 
                        dangerous exposures referred to in this 
                        paragraph); and
                            (iv) occupational hazards, including 
                        battlefield hazards; and
                    (C) repeated exposures to the agent, or some 
                combination of one or more exposures to the agent and 
                other dangerous exposures referred to in subparagraph 
                (B), over time.
            (2) To provide for--
                    (A) the prevention of and protection against, and 
                the detection (including confirmation) of, exposures to 
                a chemical warfare agent (whether intentional or 
                inadvertent) at levels that, even if not sufficient to 
endanger health immediately, are greater than the level that is 
recognized under Department of Defense policies as being the maximum 
safe level of exposure to that agent for the general population; and
                    (B) the recording, reporting, coordinating, and 
                retaining of information on possible exposures 
                described in subparagraph (A), including the monitoring 
                of the health effects of exposures on humans and 
                animals, and the documenting and reporting of those 
                health effects specifically by location.
            (3) Provide solutions for the concerns and mission 
        requirements that are specifically applicable for one or more 
        of the Armed Forces in a protracted conflict when exposures to 
        chemical agents could be complex, dynamic, and occurring over 
        an extended period.
    (c) Research Program.--The Secretary of Defense shall develop and 
carry out a plan to establish a research program for determining the 
effects of chronic and low-dose exposures to chemical warfare agents. 
The research shall be designed to yield results that can guide the 
Secretary in the evolution of policy and doctrine on low-level 
exposures to chemical warfare agents. The plan shall state the 
objectives and scope of the program and include a 5-year funding plan.
    (d) Report.--Not later than May 1, 1999, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the results of the review under subsection (a) and on the research 
program developed under subsection (c). The report shall include the 
following:
            (1) Each modification of chemical warfare defense policy 
        and doctrine resulting from the review.
            (2) Any recommended legislation regarding chemical warfare 
        defense.
            (3) The plan for the research program.

SEC. 1046. ACCOUNTING TREATMENT OF ADVANCE PAYMENT OF PERSONNEL.

    (a) Treatment.--Section 1006 of title 37, United States Code, is 
amended by adding at the end the following:
    ``(l) Notwithstanding any provision of chapter 15 of title 31, an 
amount paid a member under this section in advance of the fiscal year 
in which the member's entitlement to that amount accrues--
            ``(1) shall be treated as being obligated and expended in 
        that fiscal year; and
            ``(2) may not be treated as reducing the unobligated 
        balance of the appropriations available for military personnel, 
        Reserve personnel, or National Guard personnel, as the case may 
        be, for the fiscal year in which paid.''.
    (b) Applicability.--Subsection (l) of section 1006 of title 37, 
United States Code (as added by subsection (a)), shall apply to advance 
payments made under such section in fiscal years beginning after 
September 30, 1997.

SEC. 1047. REINSTATEMENT OF DEFINITION OF FINANCIAL INSTITUTION IN 
              AUTHORITIES FOR REIMBURSING DEFENSE PERSONNEL FOR 
              GOVERNMENT ERRORS IN DIRECT DEPOSITS OF PAY.

    (a) Members of the Armed Forces.--Section 1053(d)(1) of title 10, 
United States Code, is amended to read as follows:
            ``(1) The term `financial institution' means a bank, 
        savings and loan association or similar institution, or a 
        credit union chartered by the United States Government or a 
        State.''.
    (b) Civilian Employees.--Section 1594(d)(1) of title 10, United 
States Code, is amended to read as follows:
            ``(1) The term `financial institution' means a bank, 
        savings and loan association or similar institution, or a 
        credit union chartered by the United States Government or a 
        State.''.

SEC. 1048. PILOT PROGRAM ON ALTERNATIVE NOTICE OF RECEIPT OF LEGAL 
              PROCESS FOR GARNISHMENT OF FEDERAL PAY FOR CHILD SUPPORT 
              AND ALIMONY.

    (a) Program Required.--The Secretary of Defense shall conduct a 
pilot program on alternative notice procedures for withholding or 
garnishment of pay for the payment of child support and alimony under 
section 459 of the Social Security Act (42 U.S.C. 659).
    (b) Purpose.--The purpose of the pilot program is to test the 
efficacy of providing notice in accordance with subsection (c) to the 
person whose pay is to be withheld or garnisheed.
    (c) Notice Requirements.--Under the pilot program, if an agent 
designated under paragraph (1) of section 459(c) of the Social Security 
Act for members of the Armed Forces or employees of the Department of 
Defense receives notice or service of a court order, notice to 
withhold, or other legal process regarding a child support or alimony 
obligation of such a member or employee, the agent may omit from the 
notice that the agent sends to the member or employee under paragraph 
(2)(A) of that section the copy of the notice or service received by 
the agent. The agent shall include in the notice, which shall be in 
writing, the following:
            (1) A description of the court order, notice to withhold, 
        or other legal process.
            (2) The identity of the court, administrative agency, or 
        official that issued the order.
            (3) The case number assigned by the court, administrative 
        agency, or official.
            (4) The amount of the obligation.
            (5) The name of each person for whom the support or alimony 
        is provided.
            (6) The name, address, and telephone number of the person 
        or office from which a copy of the notice or service may be 
        obtained.
    (d) Period of Pilot Program.--The Secretary shall commence the 
pilot program not later than 90 days after the date of the enactment of 
this Act. The pilot program shall terminate on September 30, 2000.
    (e) Report.--Not later than April 1, 2001, the Secretary shall 
submit a report on the pilot program to Congress. The report shall 
contain the following:
            (1) The number of notices that were issued in accordance 
        with subsection (c) during the period of the pilot program.
            (2) The number of persons who requested copies of the 
        notice or service of the court order, notice of withholding, or 
        other legal process involved.
            (3) Any communication received by the Secretary or an agent 
        referred to in subsection (c) complaining about not being 
        furnished a copy of the notice or service of the court order, 
        notice of withholding, or other legal process with the agent's 
        notice.

SEC. 1049. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND OTHER FEDERAL 
              AGENCIES FOR SERVICES PROVIDED TO THE DEFENSE COMMISSARY 
              AGENCY.

    (a) Limitation.--Section 2482(b)(1) of title 10, United States 
Code, is amended by adding at the end the following: ``However, the 
Defense Commissary Agency may not pay for any such service any amount 
that exceeds the price at which the service could be procured in full 
and open competition (as such term is defined in section 4(6) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(6)).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply 
with respect to services provided or obtained on or after that date.

SEC. 1050. COLLECTION OF DISHONORED CHECKS PRESENTED AT COMMISSARY 
              STORES.

    Section 2486 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(g) Collection of Dishonored Checks.--(1) The Secretary of 
Defense may impose a charge for the collection of a check accepted at a 
commissary store that is not honored by the financial institution on 
which the check is drawn. The imposition and amounts of charges shall 
be consistent with practices of commercial grocery stores regarding 
dishonored checks.
    ``(2)(A) The following persons are liable to the United States for 
the amount of a check referred to in paragraph (1) that is returned 
unpaid to the United States, together with any charge imposed under 
that paragraph:
            ``(i) The person who presented the check.
            ``(ii) Any person whose status and relationship to the 
        person who presented the check provide the basis for that 
        person's eligibility to make purchases at a commissary store.
    ``(B) Any amount for which a person is liable under subparagraph 
(A) may be collected by deducting and withholding such amount from any 
amounts payable to that person by the United States.
    ``(3) Amounts collected as charges imposed under paragraph (1) 
shall be credited to the commissary trust revolving fund.
    ``(4) Appropriated funds may be used to pay any costs incurred in 
the collection of checks and charges referred to in paragraph (1). An 
appropriation account charged a cost under the preceding sentence shall 
be reimbursed the amount of that cost out of funds in the commissary 
trust revolving fund.
    ``(5) In this subsection, the term `commissary trust revolving 
fund' means the trust revolving fund maintained by the Department of 
Defense for surcharge collections and proceeds of sales of commissary 
stores.''.

SEC. 1051. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

    (a) Use of FTS2000/2001.--The Secretary of Defense shall prescribe 
in regulations authority for the Defense Commissary Agency to meet its 
telecommunication requirements by obtaining telecommunication services 
and related items under the FTS2000/2001 contract through a frame relay 
system procured for the agency.
    (b) Report.--Upon the initiation of telecommunication service for 
the Defense Commissary Agency under the FTS2000/2001 contract through 
the frame relay system, the Secretary of Defense shall submit to 
Congress a notification that the service has been initiated.
    (c) Definition.--In this section, the term ``FTS2000/2001 
contract'' means the contract for the provision of telecommunication 
services for the Federal Government that was entered into by the 
Defense Information Technology Contract Organization.

SEC. 1052. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 4358. Research grants: acceptance, application, and use
    ``(a) Acceptance of Competitively Awarded Grants.--The 
Superintendent of the Academy may accept a research grant that is 
awarded on a competitive basis by a source referred to in subsection 
(b) for a research project that is to be carried out by a professor 
or instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Application for Grants.--A professor or instructor of the 
Academy, together with the Superintendent, may apply for a research 
grant referred to in subsection (a) from any corporation, fund, 
foundation, educational institution, or similar entity that is 
organized and operated primarily for scientific, literary, or 
educational purposes.
    ``(c) Administration of Grant Proceeds.--The Superintendent shall 
establish a special account for administering the proceeds of a 
research grant accepted under subsection (a) and shall use the account 
for the administration of such proceeds in accordance with applicable 
regulations and the terms and conditions of the grant.
    ``(d) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in pursuit 
of an award of a research grant authorized to be accepted under 
subsection (a).
    ``(e) Regulations.--The Secretary of the Army shall prescribe in 
regulations the requirements, restrictions, and conditions that the 
Secretary considers appropriate for the exercise and administration of 
the authority under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4358. Research grants: acceptance, application, and use.''.
    (b) United States Naval Academy.--(1) Chapter 603 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 6977. Research grants: acceptance, application, and use
    ``(a) Acceptance of Competitively Awarded Grants.--The 
Superintendent of the Academy may accept a research grant that is 
awarded on a competitive basis by a source referred to in subsection 
(b) for a research project that is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Application for Grants.--A professor or instructor of the 
Academy, together with the Superintendent, may apply for a research 
grant referred to in subsection (a) from any corporation, fund, 
foundation, educational institution, or similar entity that is 
organized and operated primarily for scientific, literary, or 
educational purposes.
    ``(c) Administration of Grant Proceeds.--The Superintendent shall 
establish a special account for administering the proceeds of a 
research grant accepted under subsection (a) and shall use the account 
for the administration of such proceeds in accordance with applicable 
regulations and the terms and conditions of the grant.
    ``(d) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in pursuit 
of an award of a research grant authorized to be accepted under 
subsection (a).
    ``(e) Regulations.--The Secretary of the Navy shall prescribe in 
regulations the requirements, restrictions, and conditions that the 
Secretary considers appropriate for the exercise and administration of 
the authority under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6977. Research grants: acceptance, application, and use.''.
    (c) United States Air Force Academy.--(1) Chapter 903 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 9357. Research grants: acceptance, application, and use
    ``(a) Acceptance of Competitively Awarded Grants.--The 
Superintendent of the Academy may accept a research grant that is 
awarded on a competitive basis by a source referred to in subsection 
(b) for a research project that is to be carried out by a professor or 
instructor of the Academy for a scientific, literary, or educational 
purpose.
    ``(b) Application for Grants.--A professor or instructor of the 
Academy, together with the Superintendent, may apply for a research 
grant referred to in subsection (a) from any corporation, fund, 
foundation, educational institution, or similar entity that is 
organized and operated primarily for scientific, literary, or 
educational purposes.
    ``(c) Administration of Grant Proceeds.--The Superintendent shall 
establish a special account for administering the proceeds of a 
research grant accepted under subsection (a) and shall use the account 
for the administration of such proceeds in accordance with applicable 
regulations and the terms and conditions of the grant.
    ``(d) Related Expenses.--Subject to such limitations as may be 
provided in appropriations Acts, appropriations available for the 
Academy may be used to pay expenses incurred by the Academy in pursuit 
of an award of a research grant authorized to be accepted under 
subsection (a).
    ``(e) Regulations.--The Secretary of the Air Force shall prescribe 
in regulations the requirements, restrictions, and conditions that the 
Secretary considers appropriate for the exercise and administration of 
the authority under this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9357. Research grants: acceptance, application, and use.''.

SEC. 1053. CLARIFICATION AND SIMPLIFICATION OF RESPONSIBILITIES OF 
              INSPECTORS GENERAL REGARDING WHISTLEBLOWER PROTECTIONS.

    (a) Roles of Inspectors General of the Armed Forces.--(1) 
Subsection (c) of section 1034 of title 10, United States Code, is 
amended--
            (A) by striking out paragraph (1) and inserting in lieu 
        thereof the following:
    ``(1) If a member of the armed forces submits to an Inspector 
General an allegation that a personnel action prohibited by subsection 
(b) has been taken (or threatened) against the member with respect to a 
communication described in paragraph (2), the Inspector General of the 
Department of Defense or the Inspector General of the armed force 
concerned shall take the action required under paragraph (3).''; and
            (B) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
    ``(3) The Inspector General receiving an allegation as described in 
paragraph (1) shall expeditiously determine whether there is sufficient 
evidence to warrant an investigation of the allegation. Upon 
determining that an investigation is warranted, the Inspector General 
shall expeditiously investigate the allegation. In the case of an 
allegation received by the Inspector General of the Department of 
Defense, the Inspector General may delegate that duty to the Inspector 
General of the armed force concerned. Neither an initial determination 
nor an investigation is required under this paragraph in the case of an 
allegation made more than 60 days after the date on which the member 
becomes aware of the personnel action that is the subject of the 
allegation.
    ``(4) If an Inspector General within a military department receives 
an allegation covered by this subsection, that Inspector General shall 
promptly notify the Inspector General of the Department of Defense of 
the allegation in accordance with regulations prescribed under 
subsection (h).
    ``(5) The Inspector General of the Department of Defense, or the 
Inspector General of the Department of Transportation (in the case of a 
member of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy), shall ensure that the inspector general 
conducting the investigation of an allegation under this paragraph is 
outside the immediate chain of command of both the member submitting 
the allegation and the individual or individuals alleged to have taken 
the retaliatory action.''.
    (2) Subsection (d) of such section is amended--
            (A) by striking out ``the Inspector General shall conduct'' 
        and inserting in lieu thereof ``an Inspector General shall 
        conduct''; and
            (B) by adding at the end the following: ``In the case of an 
        allegation received by the Inspector General of the Department 
        of Defense, the Inspector General may delegate that duty to the 
        Inspector General of the armed force concerned.''.
    (b) Mismanagement Covered by Protected Communications.--Subsection 
(c)(2)(B) of such section is amended by striking out ``Mismanagement'' 
and inserting in lieu thereof ``Gross mismanagement''.
    (c) Simplified Reporting and Notice Requirements.--(1) Paragraph 
(1) of subsection (e) of such section is amended--
            (A) by striking out ``the Inspector General shall submit a 
        report on'' and inserting in lieu thereof ``the Inspector 
        General conducting the investigation shall provide''; and
            (B) inserting ``shall transmit a copy of the report on the 
        results of the investigation to'' before ``the member of the 
        armed forces''.
    (2) Paragraph (2) of such subsection is amended by adding at the 
end the following: ``However, the copy need not include summaries of 
interviews conducted, nor any document acquired, during the course of 
the investigation. Such items shall be transmitted to the member if the 
member requests the items, whether before or after the copy of the 
report is transmitted to the member.''.
    (3) Paragraph (3) of such subsection is amended by striking out 
``90 days'' and inserting in lieu thereof ``120 days''.
    (d) Repeal of Post-Investigation Interview Requirement.--Subsection 
(h) of such section is repealed.
    (e) Inspector General Defined.--Subsection (j)(2) of such section 
is amended--
            (1) by redesignating subparagraph (B) as subparagraph (G) 
        and, in that subparagraph, by striking out ``an officer'' and 
        inserting in lieu thereof ``An officer'';
            (2) by striking out subparagraph (A) and inserting in lieu 
        thereof the following:
                    ``(A) The Inspector General of the Department of 
                Defense.
                    ``(B) The Inspector General of the Department of 
                Transportation, in the case of a member of the Coast 
                Guard when the Coast Guard is not operating as a 
                service in the Navy.
                    ``(C) The Inspector General of the Army, in the 
                case of a member of the Army.
                    ``(D) The Naval Inspector General, in the case of a 
                member of the Navy.
                    ``(E) The Inspector General of the Air Force, in 
                the case of a member of the Air Force.
                    ``(F) The Deputy Naval Inspector General for Marine 
                Corps Matters, in the case of a member of the Marine 
                Corps.''; and
            (3) in the matter preceding subparagraph (A), by striking 
        out ``means--'' and inserting in lieu thereof ``means the 
        following:''.
    (f) Technical and Conforming Amendments.--(1) Subsections (i) and 
(j) of such section are redesignated as subsections (h) and (i), 
respectively.
    (2) Subsection (b)(1)(B)(ii) of such section is amended by striking 
out ``subsection (j))'' and inserting in lieu thereof ``subsection (i)) 
or any other Inspector General appointed under the Inspector General 
Act of 1978''.

SEC. 1054. AMOUNTS RECOVERED FROM CLAIMS AGAINST THIRD PARTIES FOR LOSS 
              OR DAMAGE TO PERSONAL PROPERTY SHIPPED OR STORED AT 
              GOVERNMENT EXPENSE.

    (a) In General.--Chapter 163 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2739. Amounts recovered from claims against third parties for 
              loss or damage to personal property shipped or stored at 
              Government expense
    ``(a) Crediting of Collections.--Amounts collected as described in 
subsection (b) by or for a military department in any fiscal year shall 
be credited to the appropriation that is available for that fiscal year 
for the military department for the payment of claims for loss or 
damage of personal property shipped or stored at Government expense. 
Amounts so credited shall be merged with the funds in the appropriation 
and shall be available for the same period and purposes as the funds 
with which merged.
    ``(b) Collections Covered.--An amount authorized for crediting in 
accordance with subsection (a) is any amount that a military department 
collects under sections 3711, 3716, 3717 and 3721 of title 31 from a 
third party for a loss or damage to personal property that occurred 
during shipment or storage of the property at Government expense and 
for which the Secretary of the military department paid the owner in 
settlement of a claim.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2739. Amounts recovered from claims against third parties for loss or 
                            damage to personal property shipped or 
                            stored at government expense.''.

SEC. 1055. ELIGIBILITY FOR ATTENDANCE AT DEPARTMENT OF DEFENSE DOMESTIC 
              DEPENDENT ELEMENTARY AND SECONDARY SCHOOLS.

    (a) Military Dependents.--Subsection (a) of section 2164 of title 
10, United States Code, is amended--
            (1) by designating the first sentence as paragraph (1);
            (2) by designating the second sentence as paragraph (2); 
        and
            (3) by adding at the end of paragraph (2), as so 
        designated, the following: ``The Secretary may also permit a 
        dependent of a member of the armed forces to enroll in such a 
        program if the dependent is residing in such a jurisdiction, 
        whether on or off a military installation, while the member is 
        assigned away from that jurisdiction on a remote or 
        unaccompanied assignment under permanent change of station 
        orders.''.
    (b) Employee Dependents.--Subsection (c)(2) of such section is 
amended by striking out subparagraph (B) and inserting in lieu thereof 
the following:
    ``(B) The Secretary may extend the enrollment of a dependent 
referred to in subparagraph (A) in the program for more than five 
consecutive school years if the Secretary determines that the dependent 
is eligible under paragraph (1), space is available in the program, and 
adequate arrangements are made for reimbursement of the Secretary for 
the costs to the Secretary of the educational services provided for the 
dependent. An extension shall be for only one school year, but the 
Secretary may authorize a successive extension each year for the next 
school year upon making the determinations required under the preceding 
sentence for that next school year.''.

SEC. 1056. FEES FOR PROVIDING HISTORICAL INFORMATION TO THE PUBLIC.

    (a) Army.--(1) Chapter 437 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 4595. Army Military History Institute: fee for providing 
              historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Army may charge a person a fee for providing the 
person with information requested by the person that is provided from 
the United States Army Military History Institute.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount of Fee.--The amount of the fee charged 
under this section for providing information may not exceed the cost of 
providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Army Military History 
Institute during that fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Army Military History 
        Institute' means the archive for historical records and 
        materials of the Army that the Secretary of the Army designates 
        as the primary archive for such records and materials.
            ``(2) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given those 
        terms in sections 2104 and 2105, respectively, of title 5.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``4595. Army Military History Institute: fee for providing historical 
                            information to the public.''.
    (b) Navy.--(1) Chapter 649 of such title 10 is amended by adding at 
the end the following new section:
``Sec. 7582. Naval and Marine Corps Historical Centers: fee for 
              providing historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Navy may charge a person a fee for providing the 
person with information requested by the person that is provided from 
the United States Naval Historical Center or the Marine Corps 
Historical Center.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount of Fee.--The amount of the fee charged 
under this section for providing information may not exceed the cost of 
providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information from the United States Naval Historical Center or 
the Marine Corps Historical Center in any fiscal year shall be credited 
to the appropriation or appropriations charged the costs of providing 
information to the public from that historical center during that 
fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Naval Historical Center' 
        means the archive for historical records and materials of the 
        Navy that the Secretary of the Navy designates as the primary 
        archive for such records and materials.
            ``(2) The term `Marine Corps Historical Center' means the 
        archive for historical records and materials of the Marine 
        Corps that the Secretary of the Navy designates as the primary 
        archive for such records and materials.
            ``(3) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given those 
        terms in sections 2104 and 2105, respectively, of title 5.''.
    (2) The heading of such chapter is amended by striking out 
``related''.
    (3)(A) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7582. Naval and Marine Corps Historical Centers: fee for providing 
                            historical information to the public.''.
    (B) The item relating to such chapter in the tables of chapters at 
the beginning of subtitle C of title 10, United States Code, and the 
beginning of part IV of such subtitle is amended by striking out 
``Related''.
    (c) Air Force.--(1) Chapter 937 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 9594. Air Force Military History Institute: fee for providing 
              historical information to the public
    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Air Force may charge a person a fee for providing the 
person with information requested by the person that is provided from 
the United States Air Force Military History Institute.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.
    ``(c) Limitation on Amount of Fee.--The amount of the fee charged 
under this section for providing information may not exceed the cost of 
providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Air Force Military 
History Institute during that fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Air Force Military History 
        Institute' means the archive for historical records and 
        materials of the Air Force that the Secretary of the Air Force 
        designates as the primary archive for such records and 
        materials.
            ``(2) The terms `officer of the United States' and 
        `employee of the United States' have the meanings given those 
        terms in sections 2104 and 2105, respectively, of title 5.''.
    (2) The table of sections at the beginning of such chapter 937 is 
amended by adding at the end the following new item:

``9594. Air Force Military History Institute: fee for providing 
                            historical information to the public.''.

SEC. 1057. PERIODIC INSPECTION OF THE ARMED FORCES RETIREMENT HOME.

    (a) Inspection by Inspectors General of the Armed Forces.--Section 
1518 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 418) is 
amended to read as follows:

``SEC. 1518. INSPECTION OF RETIREMENT HOME.

    ``(a) Triennial Inspection.--Every three years the Inspector 
General of an armed force shall inspect the Retirement Home, including 
the records of the Retirement Home.
    ``(b) Alternating Duty Among Inspectors General.--The duty to 
inspect the Retirement Home shall alternate among the Inspector General 
of the Army, the Naval Inspector General, and the Inspector General of 
the Air Force on such schedule as the Secretary of Defense shall 
direct.
    ``(c) Reports.--Not later than 45 days after completing an 
inspection under subsection (a), the Inspector General carrying out the 
inspection shall submit to the Retirement Home Board, the Secretary of 
Defense, and Congress a report describing the results of the inspection 
and containing such recommendations as the Inspector General considers 
appropriate.''.
    (b) First Inspection.--The first inspection under section 1518 of 
the Armed Forces Retirement Home Act of 1991, as amended by subsection 
(a), shall be carried out during fiscal year 1999.

SEC. 1058. TRANSFER OF F-4 PHANTOM II AIRCRAFT TO FOUNDATION.

    (a) Authority.--The Secretary of the Air Force may convey, without 
consideration to the Collings Foundation, Stow, Massachusetts (in this 
section referred to as the ``foundation''), all right, title, and 
interest of the United States in and to one surplus F-4 Phantom II 
aircraft. The conveyance shall be made by means of a conditional deed 
of gift.
    (b) Condition of Aircraft.--The Secretary may not convey ownership 
of the aircraft under subsection (a) until the Secretary determines 
that the foundation has altered the aircraft in such manner as the 
Secretary determines necessary to ensure that the aircraft does not 
have any capability for use as a platform for launching or releasing 
munitions or any other combat capability that it was designed to have. 
The Secretary is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary shall 
include in the instrument of conveyance of the aircraft--
            (1) a condition that the foundation not convey any 
        ownership interest in, or transfer possession of, the aircraft 
        to any other party without the prior approval of the Secretary 
        of the Air Force;
            (2) a condition that the operation and maintenance of the 
        aircraft comply with all applicable limitations and maintenance 
        requirements imposed by the Administrator of the Federal 
        Aviation Administration; and
            (3) a condition that if the Secretary of the Air Force 
        determines at any time that the foundation has conveyed an 
        ownership interest in, or transferred possession of, the 
        aircraft to any other party without the prior approval of the 
        Secretary, or has failed to comply with the condition set forth 
        in paragraph (2), all right, title, and interest in and to the 
        aircraft, including any repair or alteration of the aircraft, 
        shall revert to the United States, and the United States shall 
        have the right of immediate possession of the aircraft.
    (d) Conveyance at No Cost to the United States.--The conveyance of 
an aircraft authorized by this section shall be made at no cost to the 
United States. Any costs associated with such conveyance, costs of 
determining compliance with subsection (b), and costs of operation and 
maintenance of the aircraft conveyed shall be borne by the foundation.
    (e) Additional Terms and Conditions.--The Secretary of the Air 
Force may require such additional terms and conditions in connection 
with the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.
    (f) Clarification of Liability.--Notwithstanding any other 
provision of law, upon the conveyance of ownership of the F-4 Phantom 
II aircraft to the foundation under subsection (a), the United States 
shall not be liable for any death, injury, loss, or damage that results 
from any use of that aircraft by any person other than the United 
States.

SEC. 1059. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK 
              INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

    Section 1205(b) of the Merchant Marine Act of 1936 (46 U.S.C. App. 
1285(b)) is amended by adding at the end the following: ``The signature 
of the President (or of an official designated by the President) on the 
agreement shall be treated as an expression of the approval required 
under section 1202(a) to provide the insurance.''.

SEC. 1060. COMMENDATION AND MEMORIALIZATION OF THE UNITED STATES NAVY 
              ASIATIC FLEET.

    (a) Findings.--Congress makes the following findings:
            (1) The United States established the Asiatic Fleet of the 
        Navy in 1910 to protect American nationals, policies, and 
        possessions in the Far East.
            (2) The sailors and Marines of the Asiatic Fleet ensured 
        the safety of United States citizens and foreign nationals, and 
        provided humanitarian assistance, in that region during the 
        Chinese civil war, the Yangtze Flood of 1931, and the outbreak 
        of Sino-Japanese hostilities.
            (3) In 1940, due to deteriorating political relations and 
        increasing tensions between the United States and Japan, a 
        reinforced Asiatic Fleet began concentrating on the defense of 
        the Philippines and engaged in extensive training to ensure 
        maximum operational readiness for any eventuality.
            (4) Following the declaration of war against Japan, the 
        warships, submarines, and aircraft of the Asiatic Fleet singly 
        or in task forces courageously fought many naval battles 
        against a superior Japanese armada.
            (5) The Asiatic Fleet directly suffered the loss of 22 
        ships, 1,826 men killed or missing in action, and 518 men 
        captured and imprisoned under the worst of conditions with many 
        of them dying while held as prisoners of war.
    (b) Commendation.--Congress--
            (1) commends the personnel who served in the Asiatic Fleet 
        of the United States Navy during the period 1910 to 1942; and
            (2) honors those who gave their lives in the line of duty 
        while serving in the Asiatic Fleet.
    (c) United States Navy Asiatic Fleet Memorial Day.--The President 
is authorized and requested to issue a proclamation designating March 
1, 1999 as ``United States Navy Asiatic Fleet Memorial Day'' and 
calling upon the people of the United States to observe United States 
Navy Asiatic Fleet Memorial Day with appropriate programs, ceremonies, 
and activities.

SEC. 1061. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

    (a) Reference to Korean War.--Section 1083 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1918; 10 U.S.C. 113 note) is amended--
            (1) in the section heading, by striking out ``korean 
        conflict'' and inserting in lieu thereof ``korean war'';
            (2) by striking out ``Korean conflict'' each place it 
        appears and inserting in lieu thereof ``Korean War''; and
            (3) in subsections (c) and (d)(1), by striking out ``Korean 
        Conflict'' and inserting in lieu thereof ``Korean War''.
    (b) Limitation on Expenditures.--Subsection (f) of such section is 
amended to read as follows:
    ``(f) Limitation on Expenditures.--The total amount expended for 
the commemorative program for fiscal years 1998 through 2004 by the 
Department of Defense 50th Anniversary of the Korean War Commemorative 
Committee established by the Secretary of Defense may not exceed 
$10,000,000.''.

SEC. 1062. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

    (a) Finding.--Congress finds that the report submitted to Congress 
by the Secretary of Defense on April 2, 1998, regarding the 
reallocation of the frequency spectrum used or dedicated to the 
Department of Defense and the intelligence community, does not include 
a discussion of the costs to the Department of Defense that are 
associated with past and potential future reallocations of the 
frequency spectrum, although such a discussion was to be included in 
the report as directed in connection with the enactment of the National 
Defense Authorization Act for Fiscal Year 1998.
    (b) Additional Report.--The Secretary of Defense shall, not later 
than October 31, 1998, submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report that discusses the costs referred to in 
subsection (a).
    (c) Relocation of Federal Frequencies.--Section 113(g)(1) of the 
National Telecommunications and Information Administration Organization 
Act (47 U.S.C. 923(g)(1)) is amended--
            (1) by striking out ``(1) In general.--In order'' and 
        inserting in lieu thereof the following:
            ``(1) In general.--
                    ``(A) Authority of federal entities to accept 
                compensation.--In order'';
            (2) in subparagraph (A), as so designated, by striking out 
        the second, third and fourth sentences; and
            (3) by adding at the end the following:
                    ``(B) Requirement to compensate federal entities.--
                Any person on whose behalf a Federal entity incurs 
                costs under subparagraph (A) shall compensate the 
                Federal entity in advance for such costs. Such 
                compensation may take the form of a cash payment or in-
                kind compensation.
                    ``(C) Disposition of payments.--
                            ``(i) Payment by electronic funds 
                        transfer.--A person making a cash payment under 
                        this paragraph shall make the cash payment by 
                        depositing the amount of the payment by 
                        electronic funds transfer in the account of the 
                        Federal entity concerned in the Treasury of the 
                        United States or in another account as 
                        authorized by law.
                            ``(ii) Availability.--Subject to the 
                        provisions of authorization Acts and 
                        appropriations Acts, amounts deposited under 
                        this subparagraph shall be available to the 
                        Federal entity concerned to pay directly the 
                        costs of relocation under this paragraph, to 
                        repay or make advances to appropriations or 
                        funds which do or will initially bear all or 
                        part of such costs, or to refund excess sums 
                        when necessary.
                    ``(D) Application to certain other relocations.--
                The provisions of this paragraph also apply to any 
                Federal entity that operates a Federal Government 
                station assigned to used electromagnetic spectrum 
                identified for reallocation under subsection (a) if 
                before August 5, 1997, the Commission has not 
                identified that spectrum for service or assigned 
                licenses or otherwise authorized service for that 
                spectrum.''.

SEC. 1063. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) The item relating to section 484 in the table of 
        sections at the beginning of chapter 23 is amended to read as 
        follows:

``484. Annual report on aircraft inventory.''.
            (2) Section 517(a) is amended by striking out ``Except as 
        provided in section 307 of title 37, the'' and inserting in 
        lieu thereof ``The''.
            (3) The item relating to section 2302c in the table of 
        sections at the beginning of chapter 137 is amended to read as 
        follows:

``2302c. Implementation of electronic commerce capability.''.
            (4) The table of subchapters at the beginning of chapter 
        148 is amended by striking out ``2491'' in the item relating to 
        subchapter I and inserting in lieu thereof ``2500''.
            (5) Section 7045(c) is amended by striking out ``the'' 
        after ``are subject to''.
            (6) Section 7572(b) is repealed.
            (7) Section 12683(b)(2) is amended by striking out ``; or'' 
        at the end and inserting in lieu thereof a period.
    (b) Public Law 105-85.--Effective as of November 18, 1997, and as 
if included therein as enacted, the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85) is amended as follows:
            (1) Section 1006(a) (111 Stat. 1869) is amended by striking 
        out ``or'' in the quoted matter and inserting in lieu thereof 
        ``and''.
            (2) Section 3133(b)(3) (111 Stat. 2036) is amended by 
        striking out ``III'' and inserting in lieu thereof ``XIV''.
    (c) Other Acts.--
            (1) Section 18(c)(1) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out the 
        period at the end of subparagraph (A) and inserting in lieu 
        thereof a semicolon.
            (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C. 
        3142(c)(2)) is amended by striking out ``included in the most 
        recent plan submitted to the Congress under section 2506 of 
        title 10'' and inserting in lieu thereof ``identified in the 
        most recent assessment prepared under section 2505 of title 
        10''.
    (d) Coordination With Other Amendments.--For purposes of applying 
amendments made by provisions of this Act other than provisions of this 
section, this section shall be treated as having been enacted 
immediately before the other provisions of this Act.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

SEC. 1101. REPEAL OF EMPLOYMENT PREFERENCE NOT NEEDED FOR RECRUITMENT 
              AND RETENTION OF QUALIFIED CHILD CARE PROVIDERS.

    Section 1792 of title 10, United States Code, is amended--
            (1) by striking out subsection (d); and

SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS OF THE 
              UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.

    Section 9314(b)(2)(B) of title 10, United States Code, is amended 
by striking out ``section 5306(e)'' and inserting in lieu thereof 
``section 5373''.
            (2) by redesignating subsection (e) as subsection (d).

SEC. 1103. FOUR-YEAR EXTENSION OF VOLUNTARY SEPARATION INCENTIVE PAY 
              AUTHORITY.

    Section 5597(e) of title 5, United States Code, is amended by 
striking out ``September 30, 2001'' and inserting in lieu thereof 
``September 30, 2003''.

SEC. 1104. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT 
              AUTHORITY.

    (a) Civil Service Retirement System.--Section 8336 of title 5, 
United States Code, is amended--
            (1) in subsection (d)(2), by inserting ``except in the case 
        of an employee described in subsection (o)(1),'' after ``(2)''; 
        and
            (2) by adding at the end the following:
    ``(o)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
            ``(A) has been employed continuously by the Department of 
        Defense for more than 30 days before the date on which the 
        Secretary concerned requests the determinations required under 
        in subparagraph (D)(i);
            ``(B) is serving under an appointment that is not limited 
        by time;
            ``(C) has not received a decision notice of involuntary 
        separation for misconduct or unacceptable performance that is 
        pending decision; and
            ``(D) is separated from the service voluntarily during a 
        period in which--
                    ``(i) the Department of Defense or the military 
                department or subordinate organization within the 
                Department of Defense or military department in which 
                the employee is serving is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function, and employees comprising a 
                significant percentage of the employees serving in that 
                department or organization are to be separated or 
                subject to an immediate reduction in the rate of basic 
                pay (without regard to subchapter VI of chapter 53, or 
                comparable provisions of law), as determined by the 
                Office of Personnel Management (under regulations 
                prescribed by the Office) upon the request of the 
                Secretary concerned; and
                    ``(ii) the employee is within the scope of an offer 
                of voluntary early retirement (as defined by 
                organizational unit, occupational series or level, 
                geographical location, any other similar factor that 
                the Office of Personnel Management determines 
                appropriate, or any combination of such definitions of 
                scope), as determined by the Secretary concerned under 
                regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' means--
            ``(A) the Secretary of Defense, with respect to an employee 
        of the Department of Defense not employed in a position in a 
        military department;
            ``(B) the Secretary of the Army, with respect to an 
        employee of the Department of the Army;
            ``(C) the Secretary of the Navy, with respect to an 
        employee of the Department of the Navy;
            ``(D) the Secretary of the Air Force, with respect to an 
        employee of the Department of the Air Force.''.
    (b) Federal Employees' Retirement System.--Section 8414 of such 
title is amended--
            (1) in subsection (b)(1)(B), inserting ``except in the case 
        of an employee described in subsection (d)(1),'' after ``(B)''; 
        and
            (2) by adding at the end the following:
    ``(d)(1) An employee of the Department of Defense who is separated 
from the service under conditions described in paragraph (2) after 
completing 25 years of service or after becoming 50 years of age and 
completing 20 years of service is entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
            ``(A) has been employed continuously by the Department of 
        Defense for more than 30 days before the date on which the 
        Secretary concerned requests the determinations required under 
        subparagraph (D)(i);
            ``(B) is serving under an appointment that is not limited 
        by time;
            ``(C) has not received a decision notice of involuntary 
        separation for misconduct or unacceptable performance that is 
        pending decision; and
            ``(D) is separated from the service voluntarily during a 
        period in which--
                    ``(i) the Department of Defense or the military 
                department or subordinate organization within the 
                Department of Defense or military department in which 
                the employee is serving is undergoing a major 
                reorganization, a major reduction in force, or a major 
                transfer of function, and employees comprising a 
                significant percentage of the employees serving in that 
                department or organization are to be separated or 
                subject to an immediate reduction in the rate of basic 
                pay (without regard to subchapter VI of chapter 53, or 
                comparable provisions of law), as determined by the 
                Office of Personnel Management (under regulations 
                prescribed by the Office) upon the request of the 
                Secretary concerned; and
                    ``(ii) the employee is within the scope of an offer 
                of voluntary early retirement (as defined by 
                organizational unit, occupational series or level, 
                geographical location, any other similar factor that 
                the Office of Personnel Management determines 
                appropriate, or any combination of such definitions of 
                scope), as determined by the Secretary concerned under 
                regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' means--
            ``(A) the Secretary of Defense, with respect to an employee 
        of the Department of Defense not employed in a position in a 
        military department;
            ``(B) the Secretary of the Army, with respect to an 
        employee of the Department of the Army;
            ``(C) the Secretary of the Navy, with respect to an 
        employee of the Department of the Navy;
            ``(D) the Secretary of the Air Force, with respect to an 
        employee of the Department of the Air Force.''.
    (c) Conforming Amendments.--(1) Section 8339(h) of such title is 
amended by striking out ``or (j)'' in the first sentence and inserting 
in lieu thereof ``(j), or (o)''.
    (2) Section 8464(a)(1)(A)(i) of such title is amended by striking 
out ``or (b)(1)(B)'' and inserting in lieu thereof ``, (b)(1)(B), or 
(d)''.

SEC. 1105. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY EXPERIMENTAL 
              PERSONNEL MANAGEMENT PROGRAM FOR TECHNICAL PERSONNEL.

    (a) Program Authorized.--During the 5-year period beginning on the 
date of the enactment of this Act, the Secretary of Defense may carry 
out a program of experimental use of special personnel management 
authority provided in this section in order to facilitate the 
recruitment of eminent experts in science or engineering for research 
and development projects administered by the Defense Advanced Research 
Projects Agency.
    (b) Special Personnel Management Authority.--Under the program, the 
Secretary may--
            (1) appoint scientists and engineers from outside the civil 
        service and uniformed services (as such terms are defined in 
        section 2101 of title 5, United States Code) to not more than 
        20 scientific and engineering positions in the Defense Advanced 
        Research Projects Agency without regard to any provision of 
        title 5, United States Code, governing the appointment of 
        employees in the civil service;
            (2) prescribe the rates of basic pay for positions to which 
        employees are appointed under paragraph (1) at rates not in 
        excess of the maximum rate of basic pay authorized for senior-
        level positions under section 5376 of title 5, United States 
        Code, notwithstanding any provision of such title governing the 
        rates of pay or classification of employees in the executive 
        branch; and
            (3) pay any employee appointed under paragraph (1) payments 
        in addition to basic pay within the limit applicable to the 
        employee under subsection (d)(1).
    (c) Limitation on Term of Appointment.--(1) Except as provided in 
paragraph (2), the service of an employee under an appointment under 
subsection (b)(1) may not exceed four years.
    (2) The Secretary may, in the case of a particular employee, extend 
the period to which service is limited under paragraph (1) by up to two 
years if the Secretary determines that such action is necessary to 
promote the efficiency of the Defense Advanced Research Projects 
Agency.
    (d) Limitations on Additional Payments.--(1) The total amount of 
the additional payments paid to an employee under subsection (b)(3) for 
any 12-month period may not exceed the least of the following amounts:
            (A) $25,000.
            (B) The amount equal to 25 percent of the employee's annual 
        rate of basic pay.
            (C) The amount of the limitation that is applicable for a 
        calendar year under section 5307(a)(1) of title 5, United 
        States Code.
    (2) An employee appointed under subsection (b)(1) is not eligible 
for any bonus, monetary award, or other monetary incentive for service 
except for payments authorized under subsection (b)(3).
    (e) Period of Program.--(1) The program authorized under this 
section shall terminate at the end of the 5-year period referred to in 
subsection (a).
    (2) After the termination of the program--
            (A) no appointment may be made under paragraph (1) of 
        subsection (b);
            (B) a rate of basic pay prescribed under paragraph (2) of 
        that subsection may not take effect for a position; and
            (C) no period of service may be extended under subsection 
        (c)(1).
    (f) Savings Provisions.--In the case of an employee who, on the day 
before the termination of the program, is serving in a position 
pursuant to an appointment under subsection (b)(1)--
            (1) the termination of the program does not terminate the 
        employee's employment in that position before the expiration of 
        the lesser of--
                    (A) the period for which the employee was 
                appointed; or
                    (B) the period to which the employee's service is 
                limited under subsection (c), including any extension 
                made under paragraph (2) of that subsection before the 
                termination of the program; and
            (2) the rate of basic pay prescribed for the position under 
        subsection (b)(2) may not be reduced for so long (within the 
        period applicable to the employee under paragraph (1)) as the 
        employee continues to serve in the position without a break in 
        service.
    (g) Annual Report.--(1) Not later than October 15 of each year, 
beginning in 1999, the Secretary of Defense shall submit a report on 
the program to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives. The 
report submitted in a year shall cover the 12-month period ending on 
the day before the anniversary, in that year, of the date of the 
enactment of this Act.
    (2) The annual report shall contain, for the period covered by the 
report, the following:
            (A) A detailed discussion of the exercise of authority 
        under this section.
            (B) The sources from which appointees were recruited.
            (C) The methodology used for identifying and selecting 
        appointees.
            (D) Any additional information that the Secretary considers 
        helpful for assessing the utility of the authority under this 
        section.

              TITLE XII--JOINT WARFIGHTING EXPERIMENTATION

SEC. 1201. FINDINGS.

    Congress makes the following findings:
            (1) The collapse of the Soviet Union in 1991 and the 
        unprecedented explosion of technological advances that could 
        fundamentally redefine military threats and military 
        capabilities in the future have generated a need to assess the 
        defense policy, strategy, and force structure necessary to meet 
        future defense requirements of the United States.
            (2) The assessment conducted by the administration of 
        President Bush (known as the ``Base Force'' assessment) and the 
        assessment conducted by the administration of President Clinton 
        (known as the ``Bottom-Up Review'') were important attempts to 
        redefine the defense strategy of the United States and the 
        force structure of the Armed Forces necessary to execute that 
        strategy.
            (3) Those assessments have become inadequate as a result of 
        the pace of global geopolitical change and the speed of 
        technological change, which have been greater than expected.
            (4) The Chairman of the Joint Chiefs of Staff reacted to 
        the changing environment by developing and publishing in May 
        1996 a vision statement, known as ``Joint Vision 2010'', to be 
        a basis for the transformation of United States military 
        capabilities. The vision statement embodies the improved 
        intelligence and command and control that is available in the 
        information age and sets forth the operational concepts of 
        dominant maneuver, precision engagement, full-dimensional 
        protection, and focused logistics to achieve the objective of 
        full spectrum dominance.
            (5) In 1996 Congress, concerned about the shortcomings in 
        defense policies and programs derived from the Base-Force 
        Review and the Bottom-Up Review, determined that there was a 
        need for a new, comprehensive assessment of the defense 
        strategy of the United States and the force structure of the 
        Armed Forces necessary for meeting the threats to the United 
        States in the 21st century.
            (6) As a result of that determination, Congress passed the 
        Military Force Structure Review Act of 1996 (subtitle B of 
        title IX of the National Defense Authorization Act for Fiscal 
        Year 1997), which required the Secretary of Defense to complete 
        in 1997 a quadrennial defense review of the defense program of 
        the United States. The review was required to include a 
        comprehensive examination of the defense strategy, force 
        structure, force modernization plans, infrastructure, and other 
        elements of the defense program and policies with a view toward 
        determining and expressing the defense strategy of the United 
        States and establishing a revised defense program through 2005. 
        The Act also established a National Defense Panel to assess the 
        Quadrennial Defense Review and to conduct an independent, 
        nonpartisan review of the strategy, force structure, and 
        funding required to meet anticipated threats to the national 
        security of the United States through 2010 and beyond.
            (7) The Quadrennial Defense Review, completed by the 
        Secretary of Defense in May 1997, defined the defense strategy 
        in terms of ``Shape, Respond, and Prepare Now''. The 
        Quadrennial Defense Review placed greater emphasis on the need 
        to prepare now for an uncertain future by exploiting the 
        revolution in technology and transforming the force toward 
        Joint Vision 2010. It concluded that our future force will be 
        different in character than our current force.
            (8) The National Defense Panel Report, published in 
        December 1997, concluded that ``the Department of Defense 
        should accord the highest priority to executing a 
        transformation strategy for the United States military, 
        starting now.'' The panel recommended the establishment of a 
        Joint Forces Command with the responsibility to be the joint 
        force integrator and provider and the responsibility for 
        driving the process for transforming United States forces, 
        including the conduct of joint experimentation, and to have the 
        budget for carrying out those responsibilities.
            (9) The assessments of both the Quadrennial Defense Review 
        and the National Defense Panel provide Congress with a 
        compelling argument that the future security environment and 
        the military challenges to be faced by the United States in the 
        future will be fundamentally different than the current 
        environment and challenges. The assessments also reinforce the 
        foundational premise of the Goldwater-Nichols Department of 
        Defense Reorganization Act of 1986 that warfare, in all of its 
        varieties, will be joint warfare requiring the execution of 
        developed joint operational concepts.
            (10) A process of joint experimentation is necessary for--
                    (A) integrating advances in technology with changes 
                in the organizational structure of the Armed Forces and 
                the development of joint operational concepts that will 
                be effective against national security threats 
                anticipated for the future; and
                    (B) identifying and assessing the interdependent 
                aspects of joint warfare that are key for transforming 
                the conduct of military operations by the United States 
                to meet those anticipated threats successfully.
            (11) It is critical for future readiness that the Armed 
        Forces of the United States innovatively investigate and test 
        technologies, forces, and joint operational concepts in 
        simulations, wargames, and virtual settings, as well as in 
        field environments under realistic conditions against the full 
        range of future challenges. It is essential that an energetic 
        and innovative organization be established and empowered to 
        design and implement a process of joint experimentation to 
        develop and validate new joint warfighting concepts, along with 
        experimentation by the Armed Forces, that is directed at 
        transforming the Armed Forces to meet the threats to the 
        national security that are anticipated for the early 21st 
        century. That process will drive changes in doctrine, 
        organization, training and education, materiel, leadership, and 
        personnel.
            (12) The Department of Defense is committed to conducting 
        aggressive experimentation as a key component of its 
        transformation strategy.
            (13) The competition of ideas is critical for achieving 
        effective transformation. Experimentation by each of the Armed 
        Forces has been, and will continue to be, a vital aspect of the 
        pursuit of effective transformation. Joint experimentation 
        leverages the effectiveness of each of the Armed Forces and the 
        Defense Agencies.

SEC. 1202. SENSE OF CONGRESS.

    (a) Designation of Commander To Have Joint Warfighting 
Experimentation Mission.--It is the sense of Congress that Congress 
supports the initiative of the Secretary of Defense and the Chairman of 
the Joint Chiefs of Staff to designate a commander of a combatant 
command to have the mission for joint warfighting experimentation, 
consistent with the understanding of Congress that the Chairman of the 
Joint Chiefs of Staff will assign the designated commander the tasks to 
develop and validate new joint warfighting concepts and capabilities, 
and to determine the implications, for doctrine, organization, training 
and education, materiel, leadership, and personnel, of the Department 
of Defense strategy for transforming the Armed Forces to meet the 
national security threats of the future.
    (b) Resources of Commander.--It is, further, the sense of Congress 
that the commander designated to have the joint warfighting 
experimentation mission should--
            (1) have sufficient freedom of action and authority over 
        the necessary forces to successfully establish and conduct the 
        process of joint warfighting experimentation;
            (2) be provided resources adequate for the joint 
        warfighting experimentation process; and
            (3) have authority over the use of the resources for the 
        planning, preparation, conduct, and assessment of joint 
        warfighting experimentation.
    (c) Authority and Responsibilities of Commander.--It is, further, 
the sense of Congress that, for the conduct of joint warfighting 
experimentation to be effective, it is necessary that the commander 
designated to have the joint warfighting experimentation mission also 
have the authority and responsibility for the following:
            (1) Developing and implementing a process of joint 
        experimentation to formulate and validate concepts critical for 
        joint warfighting in the future, including (in such process) 
        analyses, simulations, wargames, information superiority and 
        other experiments, advanced concept technology demonstrations, 
        and joint exercises conducted in virtual and actual field 
        environments.
            (2) Planning, preparing, and conducting the program of 
        joint warfighting experimentation.
            (3) Assessing the effectiveness of organizational 
        structures, operational concepts, and technologies employed in 
        joint experimentation, investigating opportunities for 
        coordinating the evolution of the organizational structure of 
        the Armed Forces compatibly with the concurrent evolution of 
        advanced technologies, and investigating new concepts for 
        transforming joint warfighting capabilities to meet the 
        operational challenges expected to be encountered by the Armed 
        Forces in the early 21st century.
            (4) Coordinating with each of the Armed Forces and the 
        Defense Agencies regarding the development of the equipment 
        (including surrogate or real technologies, platforms, and 
        systems) necessary for the conduct of joint experimentation, 
        or, if necessary, developing such equipment directly.
            (5) Coordinating with each of the Armed Forces and the 
        Defense Agencies regarding the acquisition of the materiel, 
        supplies, services, and surrogate or real technology resources 
        necessary for the conduct of joint experimentation, or, if 
        necessary, acquiring such items and services directly.
            (6) Developing scenarios and measures of effectiveness for 
        joint experimentation.
            (7) Conducting so-called ``red team'' vulnerability 
        assessments as part of joint experimentation.
            (8) Assessing the interoperability of equipment and forces.
            (9) Providing the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff with the commander's recommendations 
        (developed on the basis of joint experimentation) for reducing 
        unnecessary redundancy of equipment and forces.
            (10) Providing the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff with the commander's recommendations 
        (developed on the basis of joint experimentation) regarding 
        synchronization of the fielding of advanced technologies among 
        the Armed Forces to enable the development and execution of 
        joint operational concepts.
            (11) Submitting, reviewing, and making recommendations (in 
        conjunction with the joint experimentation and evaluation 
        process) to the Chairman of the Joint Chiefs of Staff on 
mission needs statements and operational requirements documents.
            (12) Exploring new operational concepts (including those 
        developed within the Office of the Secretary of Defense and 
        Defense Agencies, other unified commands, the Armed Forces, and 
        the Joint Staff), and integrating and testing in joint 
        experimentation the systems and concepts that result from 
        warfighting experimentation by the Armed Forces and the Defense 
        Agencies.
            (13) Developing, planning, refining, assessing, and 
        recommending to the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff the most promising joint concepts and 
        capabilities for experimentation and assessment.
            (14) Assisting the Secretary of Defense and the Chairman of 
        the Joint Chiefs of Staff to prioritize joint requirements and 
        acquisition programs on the basis of joint warfighting 
        experimentation.
    (d) Continued Experimentation by Other Defense Organizations.--It 
is, further, the sense of Congress that--
            (1) the Armed Forces are expected to continue to develop 
        concepts and conduct intraservice and multiservice warfighting 
        experimentation within their core competencies; and
            (2) the commander of United States Special Operations 
        Command is expected to continue to develop concepts and conduct 
        joint experimentation associated with special operations 
        forces.
    (e) Congressional Review.--It is, further, the sense of Congress 
that--
            (1) Congress will carefully review the initial report and 
        annual reports on joint warfighting experimentation required 
        under section 1203 to determine the adequacy of the scope and 
        pace of the transformation of the Armed Forces to meet future 
        challenges to the national security; and
            (2) if the progress is inadequate, Congress will consider 
        legislation to establish a unified combatant command with the 
        mission, forces, budget, responsibilities, and authority 
        described in the preceding provisions of this section.

SEC. 1203. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.

    (a) Initial Report.--(1) On such schedule as the Secretary of 
Defense shall direct, the commander of the combatant command assigned 
the mission for joint warfighting experimentation shall submit to the 
Secretary an initial report on the implementation of joint 
experimentation. Not later than April 1, 1999, the Secretary shall 
submit the report, together with any comments that the Secretary 
considers appropriate and any comments that the Chairman of the Joint 
Chiefs of Staff considers appropriate, to the Chairmen of the Committee 
on Armed Services of the Senate and the Committee on National Security 
of the House of Representatives.
    (2) The initial report of the commander shall include the 
following:
            (A) The commander's understanding of the commander's 
        specific authority and responsibilities and of the commander's 
        relationship to the Secretary of Defense, the Chairman of the 
        Joint Chiefs of Staff, the Joint Staff, the commanders of other 
        combatant commands, the Armed Forces, and the Defense Agencies 
        and activities.
            (B) The organization of the commander's combatant command, 
        and of its staff, for carrying out the joint warfighting 
        experimentation mission.
            (C) The process established for tasking forces to 
        participate in joint warfighting experimentation and the 
        commander's specific authority over the forces.
            (D) Any forces designated or made available as joint 
        experimentation forces.
            (E) The resources provided for joint warfighting 
        experimentation, including the personnel and funding for the 
        initial implementation of joint experimentation, the process 
        for providing the resources to the commander, the categories of 
        the funding, and the authority of the commander for budget 
        execution.
            (F) The authority of the commander, and the process 
        established, for the development and acquisition of the 
        material, supplies, services, and equipment necessary for the 
        conduct of joint warfighting experimentation, including the 
        authority and process for development and acquisition by the 
        Armed Forces and the Defense Agencies and the authority and 
        process for development and acquisition by the commander 
        directly.
            (G) The authority of the commander to design, prepare, and 
        conduct joint experiments (including the scenarios and measures 
        of effectiveness used) for assessing operational concepts for 
        meeting future challenges to the national security.
            (H) The role assigned the commander for--
                    (i) integrating and testing in joint warfighting 
                experimentation the systems that emerge from 
                warfighting experimentation by the Armed Forces or the 
                Defense Agencies;
                    (ii) assessing the effectiveness of organizational 
                structures, operational concepts, and technologies 
                employed in joint warfighting experimentation; and
                    (iii) assisting the Secretary of Defense and the 
                Chairman of the Joint Chiefs of Staff in prioritizing 
                acquisition programs in relationship to future joint 
                warfighting capabilities.
            (I) Any other comments that the commander considers 
        appropriate.
    (b) Annual Report.--(1) On such schedule as the Secretary of 
Defense shall direct, the commander of the combatant command assigned 
the mission for joint warfighting experimentation shall submit to the 
Secretary an annual report on the conduct of joint experimentation 
activities for the fiscal year ending in the year of the report. Not 
later than December 1 of each year, the Secretary shall submit the 
report, together with any comments that the Secretary considers 
appropriate and any comments that the Chairman of the Joint Chiefs of 
Staff considers appropriate, to the Chairmen of the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives. The first annual report shall be submitted in 
1999.
    (2) The annual report of the commander shall include, for the 
fiscal year covered by the report, the following:
            (A) Any changes in--
                    (i) the commander's authority and responsibilities 
                for joint warfighting experimentation;
                    (ii) the commander's relationship to the Secretary 
                of Defense, the Chairman of the Joint Chiefs of Staff, 
                the Joint Staff, the commanders of the other combatant 
                commands, the Armed Forces, or the Defense Agencies or 
                activities;
                    (iii) the organization of the commander's command 
                and staff for joint warfighting experimentation;
                    (iv) any forces designated or made available as 
                joint experimentation forces;
                    (v) the process established for tasking forces to 
                participate in joint experimentation activities or the 
                commander's specific authority over the tasked forces;
                    (vi) the procedures for providing funding for the 
                commander, the categories of funding, or the 
                commander's authority for budget execution;
                    (vii) the authority of the commander, and the 
                process established, for the development and 
                acquisition of the material, supplies, services, and 
                equipment necessary for the conduct of joint 
                warfighting experimentation;
                    (viii) the commander's authority to design, 
                prepare, and conduct joint experiments (including the 
                scenarios and measures of effectiveness used) for 
                assessing operational concepts for meeting future 
                challenges to the national security; or
                    (ix) any role described in subsection (a)(2)(H).
            (B) The conduct of joint warfighting experimentation 
        activities, including the number of activities, the forces 
        involved, the national security challenges addressed, the 
        operational concepts assessed, and the scenarios and measures 
        of effectiveness used.
            (C) An assessment of the results of warfighting 
        experimentation within the Department of Defense.
            (D) The effect of warfighting experimentation on the 
        process for transforming the Armed Forces to meet future 
        challenges to the national security.
            (E) Any recommendations that the commander considers 
        appropriate regarding--
                    (i) the development or acquisition of advanced 
                technologies; or
                    (ii) changes in organizational structure, 
                operational concepts, or joint doctrine.
            (F) An assessment of the adequacy of resources, and any 
        recommended changes for the process of providing resources, for 
        joint warfighting experimentation.
            (G) Any recommended changes in the authority or 
        responsibilities of the commander.
            (H) Any additional comments that the commander considers 
        appropriate.
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