Calendar No. 367

105TH CONGRESS

2D SESSION S. 2060

[Report No. 105–189]

A BILL

To authorize appropriations for fiscal year 1999 for

poses.year for the Armed Forces, and for other purto prescribe personnel strengths for such fiscalmilitary activities of the Department of Defense,

MAY 11, 1998

Reported from the Committee on Armed Services, read

twice, and placed on the calendar
II

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Department of Defense

5 Authorization Act for Fiscal Year 1999’’.
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1 SEC. 2. TABLE OF CONTENTS.

2 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.
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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 counterdrug activities.

Sec. 333. Southwest border fence.
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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
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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.
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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.
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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.
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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.
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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.

1 SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

2 For purposes of this Act, the term ‘‘congressional de3 fense committees’’ means—

4 (1) the Committee on Armed Services and the

5 Committee on Appropriations of the Senate; and

6 (2) the Committee on National Security and the

7 Committee on Appropriations of the House of Rep8 resentatives.

9 TITLE I—PROCUREMENT

10 Subtitle A—Authorization of

11 Appropriations

12 SEC. 101. ARMY.

13 Funds are hereby authorized to be appropriated for

14 fiscal year 1999 for procurement for the Army as follows:

15 (1) For aircraft, $1,466,508,000.
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1 (2) For missiles, $1,175,539,000.

2 (3) For weapons and tracked combat vehicles,

3 $1,443,108,000.

4 (4) For ammunition, $1,010,155,000.

5 (5) For other procurement, $3,579,511,000.

6 SEC. 102. NAVY AND MARINE CORPS.

7 (a) NAVY.—Funds are hereby authorized to be appro8 priated for fiscal year 1999 for procurement for the Navy

9 as follows:

10 (1) For aircraft, $7,499,934,000.

11 (2) For weapons, including missiles and tor12 pedoes, $1,370,045,000.

13 (3) For shipbuilding and conversion,

14 $6,067,272,000.

15 (4) For other procurement, $4,067,907,000.

16 (b) MARINE CORPS.—Funds are hereby authorized to

17 be appropriated for fiscal year 1999 for procurement for

18 the Marine Corps in the amount of $915,558,000.

19 (c) NAVY AND MARINE CORPS AMMUNITION.—Funds

20 are hereby authorized to be appropriated for procurement

21 of ammunition for the Navy and the Marine Corps in the

22 amount of $459,539,000.
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1 SEC. 103. AIR FORCE.

2 Funds are hereby authorized to be appropriated for

3 fiscal year 1999 for procurement for the Air Force as fol4 lows:

5 (1) For aircraft, $8,303,839,000.

6 (2) For missiles, $2,375,803,000.

7 (3) For ammunition, $384,161,000.

8 (4) For other procurement, $6,792,081,000.

9 SEC. 104. DEFENSE-WIDE ACTIVITIES.

10 Funds are hereby authorized to be appropriated for

11 fiscal year 1999 for Defense-wide procurement in the

12 amount of $2,029,250,000.

13 SEC. 105. RESERVE COMPONENTS.

14 Funds are hereby authorized to be appropriated for

15 fiscal year 1999 for procurement of aircraft, vehicles, com16 munications equipment, and other equipment for the re17 serve components of the Armed Forces as follows:

18 (1) For the Army National Guard,

19 $10,000,000.

20 (2) For the Air National Guard, $10,000,000.

21 (3) For the Army Reserve, $10,000,000.

22 (4) For the Naval Reserve, $10,000,000.

23 (5) For the Air Force Reserve, $10,000,000.

24 (6) For the Marine Corps Reserve,

25 $10,000,000.
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1 SEC. 106. DEFENSE INSPECTOR GENERAL.

2 Funds are hereby authorized to be appropriated for

3 fiscal year 1999 for procurement for the Inspector General

4 of the Department of Defense in the amount of

5 $1,300,000.

6 SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

7 There is hereby authorized to be appropriated for fis8 cal year 1999 the amount of $780,150,000 for—

9 (1) the destruction of lethal chemical agents

10 and munitions in accordance with section 1412 of

11 the Department of Defense Authorization Act, 1986

12 (50 U.S.C. 1521); and

13 (2) the destruction of chemical warfare material

14 of the United States that is not covered by section

15 1412 of such Act.

16 SEC. 108. DEFENSE HEALTH PROGRAMS.

17 Funds are hereby authorized to be appropriated for

18 fiscal year 1999 for the Department of Defense for pro19 curement for carrying out health care programs, projects,

20 and activities of the Department of Defense in the total

21 amount of $402,387,000.

22 SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

23 Funds are hereby authorized to be appropriated for

24 fiscal year 1999 for the Department of Defense for carry25 ing out the Defense Export Loan Guarantee Program
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1 under section 2540 of title 10, United States Code, in the

2 total amount of $1,250,000.

3 Subtitle B—Army Programs

4 SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR

5 LONGBOW HELLFIRE MISSILE PROGRAM.

6 Beginning with the fiscal year 1999 program year,

7 the Secretary of the Army may, in accordance with section

8 2306b of title 10, United States Code, enter into a

9 multiyear procurement contract for the procurement of

10 the Longbow Hellfire missile. The contract may be for a

11 term of five years.

12 SEC. 112. CONDITION FOR AWARD OF MORE THAN ONE

13 MULTIYEAR CONTRACT FOR THE FAMILY OF

14 MEDIUM TACTICAL VEHICLES.

15 Before awarding a multiyear procurement contract

16 for the production of the Family of Medium Tactical Vehi17 cles to more than one contractor under the authority of

18 section 112(b) of the National Defense Authorization Act

19 for Fiscal Year 1998 (Public Law 105–85; 111 Stat.

20 1648), the Secretary of the Army shall certify in writing

21 to the congressional defense committees that—

22 (1) the total quantity of Family of Medium

23 Tactical Vehicles trucks required by the Army to be

24 delivered in any 12-month period exceeds the pro25 duction capacity of any single prime contractor; or
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1 (2)(A) the total cost of the procurements to the

2 Army under all such contracts over the period of the

3 contracts will be the same as or lower than the

4 amount that would be the total cost of the procure5 ments if only one such contract were awarded; and

6 (B) the vehicles to be produced by all contrac7 tors under the contracts will be produced with com8 mon components that will be interchangeable among

9 similarly configured models.

10 SEC. 113. ARMORED SYSTEM MODERNIZATION.

11 (a) LIMITATION.—Of the funds authorized to be ap12 propriated under section 101(3), $20,300,000 of the funds

13 available for the M1A1D Application Integration Kit may

14 not be obligated for the procurement of the Kit until 30

15 days after the Secretary of the Army submits the report

16 required under subsection (b).

17 (b) REPORT.—Not later than January 31, 1999, the

18 Secretary of the Army shall submit a report on armored

19 system modernization to the congressional defense com20 mittees. The report shall contain an assessment of the cur21 rent acquisition and fielding strategies for the M1A2

22 Abrams Tank and M2A3 Bradley Fighting Vehicle and

23 an assessment of alternatives to those strategies. The re24 port shall specifically include an assessment of an alter25 native fielding strategy that provides for placing all of the
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1 armored vehicles configured in the latest variant into one

2 heavy corps. The assessment of each alternative strategy

3 shall include the following:

4 (1) The relative effects on warfighting capabili5 ties in terms of operational effectiveness and train6 ing and support efficiencies, taking into consider7 ation the joint warfighting context.

8 (2) How the alternative strategy would facili9 tate the transition to the Future Scout and Cavalry

10 System, the Future Combat System, or other ar11 mored systems for the future force structure known

12 as the Army After Next.

13 (3) How the alternative strategy fits into the

14 context of overall armored system modernization

15 through 2020.

16 (4) Budgetary implications.

17 (5) Implications for the national technology and

18 industrial base.

19 SEC. 114. REACTIVE ARMOR TILES.

20 (a) LIMITATION.—None of the funds authorized to

21 be appropriated under section 101(3) or 102(b) may be

22 obligated for the procurement of reactive armor tiles until

23 30 days after the date on which the Secretary of Defense

24 submits to the congressional defense committees the study

25 required by subsection (c).
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1 (b) EXCEPTION.—The limitation in subsection (a)

2 does not apply to the obligation of any funds for the pro3 curement of armor tiles for an armored vehicle for which

4 the Secretary of the Army or, in the case of the Marine

5 Corps, the Secretary of the Navy, had established a re6 quirement for such tiles before the date of the enactment

7 of this Act.

8 (c) STUDY REQUIRED.—(1) The Secretary of De9 fense shall contract with an entity independent of the De10 partment of Defense to conduct a study of the present

11 and future operational requirements of the Army and the

12 Marine Corps for reactive armor tiles for armored vehicles

13 and to submit to the Secretary a report on the results

14 of the study.

15 (2) The study shall include the following:

16 (A) A detailed assessment of the operational re17 quirements of the Army and the Marine Corps for

18 reactive armor tiles for each of the armored vehicles

19 presently in use, including the requirements for each

20 vehicle in its existing configurations and in configu21 rations proposed for the vehicle.

22 (B) For each armored vehicle, an analysis of

23 the costs and benefits of the procurement and instal24 lation of the tiles, including a comparison of those
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1 costs and benefits with the costs and benefits of any

2 existing upgrade program for the armored vehicle.

3 (3) The entity carrying out the study shall request

4 the views of the Secretary of the Army and the Secretary

5 of the Navy.

6 (d) SUBMISSION TO CONGRESS.—Not later than

7 April 1, 1999, the Secretary of Defense shall submit to

8 the congressional defense committees—

9 (1) the report on the study;

10 (2) the comments of the Secretary of the Army

11 and the Secretary of the Navy on the study; and

12 (3) for each vehicle for which it is determined

13 that a requirement for reactive armor tiles exists,

14 the Secretary’s recommendations as to the number

15 of vehicles to be equipped with the tiles.

16 SEC. 115. ANNUAL REPORTING OF COSTS ASSOCIATED

17 WITH TRAVEL OF MEMBERS OF CHEMICAL

18 DEMILITARIZATION CITIZENS’ ADVISORY

19 COMMISSION.

20 (a) INFORMATION TO BE INCLUDED IN ANNUAL RE21 PORT ON CHEMICAL DEMILITARIZATION PROGRAM.—Sec22 tion 1412(g)(2) of the Department of Defense Authoriza23 tion Act, 1986 (50 U.S.C. 1521(g)(2)) is amended by add24 ing at the end the following:
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1 ‘‘(C) An accounting of all funds expended (for

2 the fiscal year covered by the report) for travel and

3 associated travel costs for Citizens’ Advisory Com4 missioners under section 172(g) of Public Law 102–

5 484 (50 U.S.C. 1521 note).’’.

6 (b) TECHNICAL AMENDMENT.—Section 1412(g) of

7 section 1412 of such Act is amended by striking out ‘‘(g)

8 PERIODIC REPORTS.—’’ and inserting in lieu thereof ‘‘(g)

9 ANNUAL REPORT.—’’.

10 SEC. 116. EXTENSION OF AUTHORITY TO CARRY OUT AR11 MAMENT RETOOLING AND MANUFACTURING

12 SUPPORT INITIATIVE.

13 Section 193(a) of the Armament Retooling and Man14 ufacturing Support Act of 1992 (subtitle H of title I of

15 Public Law 102–484; 10 U.S.C. 2501 note) is amended

16 by striking out ‘‘During fiscal years 1993 through 1998’’

17 and inserting in lieu thereof ‘‘During fiscal years 1993

18 through 1999’’.

19 Subtitle C—Navy Programs

20 SEC. 121. CVN–77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

21 Of the amount authorized to be appropriated under

22 section 102(a)(3) for fiscal year 1999, $124,500,000 is

23 available for the advance procurement and advance con24 struction of components (including nuclear components)

25 for the CVN–77 nuclear aircraft carrier program.
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1 SEC. 122. INCREASED AMOUNT TO BE EXCLUDED FROM

2 COST LIMITATION FOR SEAWOLF SUBMARINE

3 PROGRAM.

4 Section 123(a) of the National Defense Authorization

5 Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.

6 1650) is amended by striking out ‘‘$272,400,000’’ and in7 serting in lieu thereof ‘‘$557,600,000’’.

8 SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR

9 THE MEDIUM TACTICAL VEHICLE REPLACE10 MENT.

11 Beginning with the fiscal year 1999 program year,

12 the Secretary of the Navy may, in accordance with section

13 2306b of title 10, United States Code, enter into a

14 multiyear procurement contract for the procurement of

15 the Medium Tactical Vehicle Replacement. The contract

16 may be for a term of five years.

17 Subtitle D—Air Force Programs

18 SEC. 131. JOINT SURVEILLANCE TARGET ATTACK RADAR

19 SYSTEM.

20 (a) AMOUNT FOR FOLLOW-ON OPTIONS.—Of the

21 amount authorized to be appropriated under section

22 103(1) for the Joint Surveillance Target Attack Radar

23 System (JSTARS) program, $72,000,000 is available for

24 funding the following options:

25 (1) Advance procurement of long-lead items for

26 two additional E–8C JSTARS aircraft.
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1 (2) Payment of expenses associated with termi2 nation of production of JSTARS aircraft, together

3 with augmentation of other funding for the program

4 for development of an improved joint surveillance

5 target attack radar, known as the radar technology

6 insertion program.

7 (b) LIMITATION.—None of the funds available in ac8 cordance with subsection (a) for funding an option de9 scribed in that subsection may be obligated until 30 days

10 after the date on which the Secretary of Defense submits

11 to Congress a plan for using the funds. The plan shall

12 specify the option selected, the reasons for the selection

13 of that option, and details about how the funds are to be

14 used for that option.

15 SEC. 132. LIMITATION ON REPLACEMENT OF ENGINES ON

16 MILITARY AIRCRAFT DERIVED FROM BOEING

17 707 AIRCRAFT.

18 None of the funds authorized to be appropriated

19 under this title may be obligated or expended for the re20 placement of engines on aircraft of the Department of De21 fense that are derived from the Boeing 707 aircraft until

22 the Secretary of Defense has submitted the analysis re23 quired by section 133 of the National Defense Authoriza24 tion Act for Fiscal Year 1998 (Public Law 105–85; 111

25 Stat. 1652).
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1 SEC. 133. F–22 AIRCRAFT PROGRAM.

2 (a) LIMITATION ON ADVANCE PROCUREMENT.—(1)

3 Amounts available for the Department of Defense for any

4 fiscal year for the F–22 aircraft program may not be obli5 gated for advance procurement for the six Lot II F–22

6 aircraft before the date that is 30 days after date that

7 is applicable under paragraph (2) or (3).

8 (2) The applicable date for the purposes of paragraph

9 (1) is the date on which the Secretary of Defense submits

10 a certification under subsection (b)(1) unless the Sec11 retary submits a report under subsection (b)(2).

12 (3) If the Secretary submits a report under sub13 section (b)(2), the applicable date for the purposes of

14 paragraph (1) is the later of—

15 (A) the date on which the Secretary of Defense

16 submits the report; or

17 (B) the date on which the Director of Oper18 ational Test and Evaluation submits the certification

19 required under subsection (c).

20 (b) CERTIFICATION BY SECRETARY OF DEFENSE.—

21 (1) Upon the completion of 433 hours of flight testing of

22 F–22 flight test vehicles, the Secretary of Defense shall

23 submit to the congressional defense committees a certifi24 cation of the completion of that amount of flight testing.

25 A certification is not required under this paragraph if the

26 Secretary submits a report under paragraph (2).
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1 (2) If the Secretary determines that a number of

2 hours of flight testing of F–22 flight test vehicles less than

3 433 hours provides the Defense Acquisition Board with

4 a sufficient basis for deciding to proceed into production

5 of Lot II F–22 aircraft, the Secretary may submit a report

6 to the congressional defense committees upon the comple7 tion of that lesser number of hours of flight testing. A

8 report under this paragraph shall contain the following:

9 (A) A certification of the number of hours of

10 flight testing completed.

11 (B) The reasons for the Secretary’s determina12 tion that the lesser number of hours is a sufficient

13 basis for a decision by the board.

14 (C) A discussion of the extent to which the Sec15 retary’s determination is consistent with each deci16 sion made by the Defense Acquisition Board since

17 January 1997 in the case of a major aircraft acqui18 sition program that the amount of flight testing

19 completed for the program was sufficient or not suf20 ficient to justify a decision to proceed into low-rate

21 initial production.

22 (D) A determination by the Secretary that it is

23 more financially advantageous for the Department to

24 proceed into production of Lot II F–22 aircraft than

25 to delay production until completion of 433 hours of
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1 flight testing, together with the reasons for that de2 termination.

3 (c) CERTIFICATION BY THE DIRECTOR OF OPER4 ATIONAL TEST AND EVALUATION.—Upon the completion

5 of 183 hours of the flight testing of F–22 flight test vehi6 cles provided for in the test and evaluation master plan

7 for the F–22 aircraft program, as in effect on October

8 1, 1997, the Director of Operational Test and Evaluation

9 shall submit to the congressional defense committees a

10 certification of the completion of that flight testing.

11 SEC. 134. C–130J AIRCRAFT PROGRAM.

12 Not later than March 1, 1999, the Secretary of De13 fense shall review the C–130J aircraft program and sub14 mit a report on the program to the congressional defense

15 committees. The report shall include at least the following:

16 (1) A discussion of the testing planned and the

17 testing conducted under the program, including—

18 (A) the testing schedule intended at the

19 beginning of the program;

20 (B) the testing schedule as of when the

21 testing commenced; and

22 (C) an explanation of the time taken for

23 the testing.

24 (2) The cost and schedule of the program, in25 cluding—
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1 (A) whether the Department has exercised

2 or plans to exercise contract options for fiscal

3 years 1996, 1997, 1998, and 1999;

4 (B) when the Department expects the air5 craft to be delivered and how the delivery dates

6 compare to the delivery dates specified in the

7 contract;

8 (C) whether the Department expects to

9 make any modification to the negotiated con10 tract price for these aircraft, and the amount

11 and basis for any such modification; and

12 (D) whether the Department expects the

13 reported delays and overruns in the develop14 ment of the aircraft to have any other impact

15 on the cost, schedule, or performance of the air16 craft.

17 TITLE II—RESEARCH, DEVELOP18 MENT, TEST, AND EVALUA19 TION

20 Subtitle A—Authorization of

21 Appropriations

22 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

23 Funds are hereby authorized to be appropriated for

24 fiscal year 1999 for the use of the Department of Defense

25 for research, development, test, and evaluation as follows:
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1 (1) For the Army, $4,838,145,000.

2 (2) For the Navy, $8,199,102,000.

3 (3) For the Air Force, $13,398,993,000.

4 (4) For Defense-wide activities,

5 $9,837,764,000, of which—

6 (A) $249,106,000 is authorized for the ac7 tivities of the Director, Test and Evaluation;

8 and

9 (B) $25,245,000 is authorized for the Di10 rector of Operational Test and Evaluation.

11 SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

12 (a) FISCAL YEAR 1999.—Of the amounts authorized

13 to be appropriated by section 201, $4,186,817,000 shall

14 be available for basic research and applied research

15 projects.

16 (b) BASIC RESEARCH AND APPLIED RESEARCH DE17 FINED.—For purposes of this section, the term ‘‘basic re18 search and applied research’’ means work funded in pro19 gram elements for defense research and development

20 under Department of Defense category 6.1 or 6.2.
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1 Subtitle B—Program Require2 ments, Restrictions, and Limita3 tions

4 SEC. 211. CRUSADER SELF-PROPELLED ARTILLERY SYS5 TEM PROGRAM.

6 (a) LIMITATION.—Of the amount authorized to be

7 appropriated for the Army pursuant to section 201(1), not

8 more than $223,000,000 may be obligated for the Cru9 sader self-propelled artillery system program until 30 days

10 after the date on which the Secretary of the Army submits

11 the report required under subsection (b).

12 (b) REQUIREMENT FOR REPORT.—The Secretary of

13 the Army shall submit to the congressional defense com14 mittees a report on the Crusader self-propelled artillery

15 system. The report shall include the following:

16 (1) An assessment of the risks associated with

17 the current Crusader program technology.

18 (2) The total requirements for the Crusader

19 system, taking into consideration revisions in force

20 structure resulting from the redesign of heavy and

21 light divisions to achieve a force structure known as

22 the Army After Next.

23 (3) The potential for reducing the weight of the

24 Crusader system by as much as 50 percent.
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1 (4) The potential for using alternative propel2 lants for the artillery projectile for the Crusader sys3 tem and the effects on the overall program schedule

4 that would result from taking the actions and time

5 necessary to develop mature technologies for alter6 native propellants.

7 (5) An analysis of the costs and benefits of de8 laying procurement of Crusader to avoid afford9 ability issues associated with the current schedule

10 and to allow for maturation of weight and propellant

11 technologies.

12 (c) SUBMISSION OF REPORT.—The Secretary of the

13 Army shall submit the report not later than March 1,

14 1999.

15 SEC. 212. CVN–77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

16 (a) AMOUNT FOR NEW TECHNOLOGIES.—Of the

17 amounts authorized to be appropriated under section

18 201(2) for aircraft carrier system development,

19 $50,000,000 shall be available only for research, develop20 ment, test, and evaluation, and for acquisition, of tech21 nologies described in subsection (b) for use in the CVN–

22 77 nuclear aircraft carrier program.

23 (b) TECHNOLOGIES.—The technologies for which

24 amounts are available under subsection (a) are tech25 nologies that are designed—
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1 (1) for a transition from the CVN–77 aircraft

2 carrier program to the CV(X) aircraft carrier pro3 gram; and

4 (2) for—

5 (A) demonstrating enhanced capabilities

6 for the CV(X) aircraft carrier program; or

7 (B) mitigating the cost or technical risks

8 of that program.

9 SEC. 213. UNMANNED AERIAL VEHICLE PROGRAMS.

10 (a) TERMINATION OF DARK STAR PROGRAM.—The

11 Secretary of Defense shall terminate the Dark Star un12 manned aerial vehicle program. Except as provided in sub13 section (b), funds available for that program may be obli14 gated after the date of the enactment of this Act only for

15 costs necessary for terminating the program.

16 (b) GLOBAL HAWK PROGRAM.—Of the unobligated

17 balance of the funds available for the Dark Star un18 manned aerial vehicle program, $32,500,000 shall be

19 available for the procurement of three Global Hawk un20 manned aerial vehicles. However, none of the funds made

21 available for the Global Hawk unmanned aerial vehicle

22 program under the preceding sentence may be obligated

23 or expended for that program until phase II testing of the

24 Global Hawk unmanned aerial vehicle has been completed.
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1 SEC. 214. AIRBORNE LASER PROGRAM.

2 (a) FINDINGS.—Congress makes the following find3 ings:

4 (1) The development plan of the Department of

5 Defense for the Airborne Laser Program does not

6 include the basic validation of certain key tech7 nologies until 2002, which is shortly before the pro8 gram is scheduled to enter the engineering and man9 ufacturing development phase of development.

10 (2) It is possible that the technical risk of the

11 Airborne Laser Program could be substantially re12 duced by restructuring the program to include a

13 technology demonstration using a low power laser

14 device to collect optical data in an operationally rep15 resentative environment.

16 (3) Department of Defense officials are cur17 rently planning to have expended approximately

18 $1,300,000,000 on the Airborne Laser Program by

19 the end of fiscal year 2002, and a total of

20 $6,300,000,000 by the end of fiscal year 2008 for

21 the development of the system and the procurement

22 of seven airborne laser aircraft.

23 (4) Due to the likely vulnerability of an air24 borne laser system to air defense threats, the limited

25 lethal range of the laser device, and other oper26 ational limitations of the system, the utility of the
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1 airborne laser system will be severely restricted

2 under a wide range of operational scenarios.

3 (b) ASSESSMENT OF TECHNICAL AND OPERATIONAL

4 LIMITATIONS.—The Secretary of Defense shall conduct an

5 assessment of the technical obstacles and operational

6 shortcomings expected for the Airborne Laser Program.

7 In conducting the assessment, the Secretary shall—

8 (1) require the Panel on Reducing Risk in Bal9 listic Missile Defense Test Programs to evaluate the

10 adequacy of the test program for the Airborne Laser

11 Program; and

12 (2) establish an independent team of persons

13 from outside the Department of Defense who are ex14 perts in relevant fields to review the operational limi15 tations and issues associated with the Airborne

16 Laser Program.

17 (c) REPORT ON ASSESSMENT.—Not later than March

18 15, 1999, the Secretary shall submit a report on the as19 sessment to Congress. The report shall include the Sec20 retary’s findings and any recommendations that the Sec21 retary considers appropriate.

22 (d) FUNDING FOR PROGRAM.—Of the amount au23 thorized to be appropriated under section 201(3),

24 $195,219,000 shall be available for the Airborne Laser

25 Program.
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1 (e) LIMITATION.—Of the amount made available pur2 suant to subsection (d), not more than $150,000,000 may

3 be obligated until 30 days after the Secretary submits the

4 report required under subsection (c).

5 SEC. 215. ENHANCED GLOBAL POSITIONING SYSTEM PRO6 GRAM.

7 (a) FINDINGS.—Congress makes the following find8 ings:

9 (1) Section 152(b) of the National Defense Au10 thorization Act for Fiscal Year 1994 (Public Law

11 103–160; 107 Stat. 1578) prohibits the obligation of

12 funds, after September 30, 2000, to modify or pro13 cure any Department of Defense aircraft, ship, ar14 mored vehicle, or indirect-fire weapon system that is

15 not equipped with a Global Positioning System re16 ceiver.

17 (2) Section 279(b) of the National Defense Au18 thorization Act for Fiscal Year 1996 (Public Law

19 104–106; 110 Stat. 243) requires the Secretary of

20 Defense to prepare a plan for enhancing the Global

21 Positioning System and to provide in that plan for—

22 (A) the development of capabilities to deny

23 hostile military forces the ability to use the

24 Global Positioning System without hindering

25 the ability of United States military forces and
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1 civil users to have access to and use of the sys2 tem; and

3 (B) the development and acquisition of re4 ceivers for the Global Positioning System and

5 other techniques for weapons and weapon sys6 tems that provide substantially improved resist7 ance to jamming and other forms of electronic

8 interference or disruption.

9 (3) Section 2281 of title 10, United States

10 Code, requires the Secretary of Defense—

11 (A) to develop appropriate measures for

12 preventing hostile use of the Global Positioning

13 System so as to make it unnecessary for the

14 Secretary to use the selective availability fea15 ture of the system continuously while not hin16 dering the use of the Global Positioning System

17 by the United States and its allies for military

18 purposes;

19 (B) to ensure that the Armed Forces of

20 the United States have the capability to use the

21 Global Positioning System effectively despite

22 hostile attempts to prevent the use of the sys23 tem by such forces; and

24 (C) to develop measures for preventing

25 hostile use of the Global Positioning System in
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1 a particular area without hindering peaceful

2 civil use of the system elsewhere.

3 (b) POLICY ON PRIORITY FOR DEVELOPMENT OF EN4 HANCED GPS SYSTEM.—The development of an enhanced

5 Global Positioning System is an urgent national security

6 priority.

7 (c) DEVELOPMENT REQUIRED.—To fulfill the re8 quirements described in subsection (a), the Secretary of

9 Defense shall develop an enhanced Global Positioning Sys10 tem in accordance with the priority declared in subsection

11 (b). The enhanced Global Positioning System shall consist

12 of the following elements:

13 (1) An evolved satellite system that includes dy14 namic frequency reconfiguration and regional-level

15 directional signal enhancements.

16 (2) Enhanced receivers and user equipment

17 that are capable of providing military users with di18 rect access to encrypted Global Positioning System

19 signals.

20 (3) To the extent funded by the Secretary of

21 Transportation, additional civil frequencies and

22 other enhancements for civil users.

23 (d) SENSE OF CONGRESS REGARDING FUNDING.—

24 It is the sense of Congress that—
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1 (1) the Secretary of Defense should ensure that

2 the future-years defense program provides for suffi3 cient funding to develop and deploy an enhanced

4 Global Positioning System system in accordance

5 with the priority declared in subsection (b); and

6 (2) the Secretary of Transportation should pro7 vide sufficient funding to support additional civil fre8 quencies for the Global Positioning System and

9 other enhancements of the system for civil users.

10 (e) PLAN FOR DEVELOPMENT OF ENHANCED GLOB11 AL POSITIONING SYSTEM.—Not later than April 15, 1999,

12 the Secretary of Defense shall submit to Congress a plan

13 for carrying out the requirements of subsection (c).

14 (f) DELAYED EFFECTIVE DATE FOR LIMITATION ON

15 PROCUREMENT OF SYSTEMS NOT GPS-EQUIPPED.—Sec16 tion 152(b) of the National Defense Authorization Act for

17 Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1578)

18 is amended by striking out ‘‘2000’’ and inserting in lieu

19 thereof ‘‘2005’’.

20 (g) FUNDING FROM AUTHORIZED APPROPRIATIONS

21 FOR FISCAL YEAR 1999.—Of the amounts authorized to

22 be appropriated under section 201(3), $44,000,000 shall

23 be available to establish and carry out an enhanced Global

24 Positioning System program.
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1 SEC. 216. MANUFACTURING TECHNOLOGY PROGRAM.

2 (a) COMPETITION AND COST SHARING.—Subsection

3 (d) of section 2525 of title 10, United States Code, is

4 amended by striking out paragraphs (2), (3), and (4) and

5 inserting in lieu thereof the following:

6 ‘‘(2) Except as provided in paragraph (3), the costs

7 of a project carried out under the program shall be shared

8 by the Department of Defense and the other parties to

9 the grant, contract, cooperative agreement, or other trans10 action involved if any results of the project are likely to

11 have an immediate and direct commercial application. The

12 cost share—

13 ‘‘(A) in the case of a grant, contract, coopera14 tive agreement, or other transaction that is awarded

15 using a competitive selection process, shall be the

16 cost share proposed in the application or offer se17 lected for the award; or

18 ‘‘(B) in a case in which there is only one appli19 cant or offeror, shall be the cost share negotiated

20 with the applicant or offeror that provides the best

21 value for the Government.

22 ‘‘(3)(A) Cost-sharing is not required of the non-Fed23 eral Government parties to a grant, contract, cooperative

24 agreement, or other transaction under paragraph (2) if

25 the project is determined as being sufficiently high risk
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1 to discourage cost-sharing by non-Federal Government

2 sources.

3 ‘‘(B) A determination under subparagraph (A) that

4 cost-sharing is not required in the case of a particular

5 grant, contract, cooperative agreement or other trans6 action shall be made by—

7 ‘‘(i) the Secretary of the military department

8 awarding the grant or entering into the contract, co9 operative agreement, or other transaction; or

10 ‘‘(ii) the Secretary of Defense for any other

11 grant, contract, cooperative agreement, or trans12 action.

13 ‘‘(C) The transaction file for a case in which cost14 sharing is determined as not being required shall include

15 written documentation of the reasons for the determina16 tion.’’.

17 (b) FIVE-YEAR PLAN.—Subsection (e)(2) of such

18 section is amended to read as follows:

19 ‘‘(2) The plan shall include the following:

20 ‘‘(A) An assessment of the effectiveness of the

21 program.

22 ‘‘(B) An assessment of the extent to which the

23 costs of projects are being shared by the following:

24 ‘‘(i) Commercial enterprises in the private

25 sector.
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1 ‘‘(ii) Department of Defense program of2 fices, including weapon system program offices.

3 ‘‘(iii) Departments and agencies of the

4 Federal Government outside the Department of

5 Defense.

6 ‘‘(iv) Institutions of higher education.

7 ‘‘(v) Other institutions not operated for

8 profit.

9 ‘‘(vi) Other sources.’’.

10 SEC. 217. AUTHORITY FOR USE OF MAJOR RANGE AND

11 TEST FACILITY INSTALLATIONS BY COMMER12 CIAL ENTITIES.

13 (a) PERMANENT AUTHORITY.—Subsection (g) of sec14 tion 2681 of title 10, United States Code, is repealed.

15 (b) REPEAL OF EXECUTED REPORTING REQUIRE16 MENT.—Subsection (h) of such section is repealed.

17 SEC. 218. EXTENSION OF AUTHORITY TO CARRY OUT CER18 TAIN PROTOTYPE PROJECTS.

19 Section 845(c) of the National Defense Authorization

20 Act for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C.

21 2371 note) is amended by striking out ‘‘September 30,

22 1999’’ and inserting in lieu thereof ‘‘September 30,

23 2001’’.
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1 Subtitle C—Other Matters

2 SEC. 231. POLICY WITH RESPECT TO BALLISTIC MISSILE

3 DEFENSE COOPERATION.

4 As the United States proceeds with efforts to develop

5 defenses against ballistic missile attack, it should seek to

6 foster a climate of cooperation with Russia on matters re7 lated to missile defense. In particular, the United States

8 and its NATO allies should seek to cooperate with Russia

9 in such areas as early warning.

10 TITLE III—OPERATION AND

11 MAINTENANCE

12 Subtitle A—Authorization of

13 Appropriations

14 SEC. 301. OPERATION AND MAINTENANCE FUNDING.

15 (a) AMOUNTS AUTHORIZED.—Funds are hereby au16 thorized to be appropriated for fiscal year 1999 for the

17 use of the Armed Forces and other activities and agencies

18 of the Department of Defense for expenses, not otherwise

19 provided for, for operation and maintenance, in amounts

20 as follows:

21 (1) For the Army, $17,395,563,000.

22 (2) For the Navy, $22,001,302,000.

23 (3) For the Marine Corps, $2,638,703,000.

24 (4) For the Air Force, $19,213,404,000.
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1 (5) For the Special Operations Command,

2 $1,251,503,000.

3 (6) For Defense-wide activities,

4 $9,025,598,000.

5 (7) For the Army Reserve, $1,217,622,000.

6 (8) For the Naval Reserve, $943,639,000.

7 (9) For the Marine Corps Reserve,

8 $134,593,000.

9 (10) For the Air Force Reserve,

10 $1,759,696,000.

11 (11) For the Army National Guard,

12 $2,476,815,000.

13 (12) For the Air National Guard,

14 $3,113,933,000.

15 (13) For the Defense Inspector General,

16 $130,764,000.

17 (14) For the United States Court of Appeals

18 for the Armed Forces, $7,324,000.

19 (15) For Environmental Restoration, Army,

20 $370,640,000.

21 (16) For Environmental Restoration, Navy,

22 $274,600,000.

23 (17) For Environmental Restoration, Air Force,

24 $372,100,000.
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1 (18) For Environmental Restoration, Defense2 wide, $23,091,000.

3 (19) For Environmental Restoration, Formerly

4 Used Defense Sites, $195,000,000.

5 (20) For Overseas Humanitarian, Demining,

6 and CINC Initiatives, $50,000,000.

7 (21) For Drug Interdiction and Counter-drug

8 Activities, Defense-wide, $727,582,000.

9 (22) For the Kaho’olawe Island Conveyance,

10 Remediation, and Environmental Restoration Trust

11 Fund, $15,000,000.

12 (23) For Medical Programs, Defense,

13 $9,653,435,000.

14 (24) For Cooperative Threat Reduction pro15 grams, $440,400,000.

16 (25) For Overseas Contingency Operations

17 Transfer Fund, $746,900,000.

18 (26) For Impact Aid, $35,000,000.

19 (b) GENERAL LIMITATION.—Notwithstanding para20 graphs (1) through (25) of subsection (a), the total

21 amount authorized to be appropriated for fiscal year 1999

22 under those paragraphs is $93,875,207,000.

23 SEC. 302. WORKING CAPITAL FUNDS.

24 Funds are hereby authorized to be appropriated for

25 fiscal year 1999 for the use of the Armed Forces and other
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1 activities and agencies of the Department of Defense for

2 providing capital for working capital and revolving funds

3 in amounts as follows:

4 (1) For the Defense Working Capital Funds,

5 Air Force, $30,800,000.

6 (2) For Defense Working-Capital Fund, De7 fense-wide, $63,700,000.

8 (3) For the National Defense Sealift Fund,

9 $669,566,000.

10 SEC. 303. ARMED FORCES RETIREMENT HOME.

11 There is hereby authorized to be appropriated for fis12 cal year 1999 from the Armed Forces Retirement Home

13 Trust Fund the sum of $70,745,000 for the operation of

14 the Armed Forces Retirement Home, including the United

15 States Soldiers’ and Airmen’s Home and the Naval Home.

16 SEC. 304. TRANSFER FROM THE NATIONAL DEFENSE

17 STOCKPILE TRANSACTION FUND.

18 (a) TRANSFER AUTHORITY.—To the extent provided

19 in appropriations Acts, not more than $150,000,000 is au20 thorized to be transferred from the National Defense

21 Stockpile Transaction Fund to operation and maintenance

22 accounts for fiscal year 1999 in amounts as follows:

23 (1) For the Army, $50,000,000.

24 (2) For the Navy, $50,000,000.

25 (3) For the Air Force, $50,000,000.
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1 (b) TREATMENT OF TRANSFERS.—Amounts trans2 ferred under this section—

3 (1) shall be merged with, and be available for

4 the same purposes and the same period as, the

5 amounts in the accounts to which transferred; and

6 (2) may not be expended for an item that has

7 been denied authorization of appropriations by Con8 gress.

9 (c) RELATIONSHIP TO OTHER TRANSFER AUTHOR10 ITY.—The transfer authority provided in this section is in

11 addition to the transfer authority provided in section

12 1001.

13 Subtitle B—Program Require14 ments, Restrictions, and Limita15 tions

16 SEC. 311. SPECIAL OPERATIONS COMMAND

17 COUNTERPROLIFERATION AND

18 COUNTERTERRORISM ACTIVITIES.

19 Of the amount authorized to be appropriated under

20 section 301(a)(5), the $18,500,000 available for the Spe21 cial Operations Command that is not needed for the oper22 ation of six of the patrol coastal craft of the Department

23 of Defense in the Caribbean Sea and Eastern Pacific

24 Ocean in support of the drug interdiction efforts of the

25 United States Southern Command by reason of section
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1 331 shall be available for increased training and related

2 operations in support of that command’s

3 counterproliferation of weapons of mass destruction and

4 the command’s counterterrorism activities. The amount

5 available under the preceding sentence is in addition to

6 other funds authorized to be appropriated under section

7 301(a)(5) for the Special Operations Command for such

8 purposes.

9 SEC. 312. TAGGING SYSTEM FOR IDENTIFICATION OF HY10 DROCARBON FUELS USED BY THE DEPART11 MENT OF DEFENSE.

12 (a) AUTHORITY TO CONDUCT PILOT PROGRAM.—

13 The Secretary of Defense may conduct a pilot program

14 using existing technology to determine—

15 (1) the feasibility of tagging hydrocarbon fuels

16 used by the Department of Defense for the purposes

17 of analyzing and identifying such fuels;

18 (2) the deterrent effect of such tagging on the

19 theft and misuse of fuels purchased by the Depart20 ment; and

21 (3) the extent to which such tagging assists in

22 determining the source of surface and underground

23 pollution in locations having separate fuel storage

24 facilities of the Department and of civilian compa25 nies.
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1 (b) SYSTEM ELEMENTS.—The tagging system under

2 the pilot program shall have the following characteristics:

3 (1) The tagging system does not harm the envi4 ronment.

5 (2) Each chemical used in the tagging system

6 is—

7 (A) approved for use under the Toxic Sub8 stances Control Act (15 U.S.C. 2601 et seq.);

9 and

10 (B) substantially similar to the fuel to

11 which added, as determined in accordance with

12 criteria established by the Environmental Pro13 tection Agency for the introduction of additives

14 into hydrocarbon fuels.

15 (3) The tagging system permits a determination

16 if a tag is present and a determination if the con17 centration of a tag has changed in order to facilitate

18 identification of tagged fuels and detection of dilu19 tion of tagged fuels.

20 (4) The tagging system does not impair or de21 grade the suitability of tagged fuels for their in22 tended use.

23 (c) REPORT.—Not later than 30 days after the com24 pletion of the pilot program, the Secretary shall submit

25 to Congress a report setting forth the results of the pilot
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1 program and including any recommendations for legisla2 tion relating to the tagging of hydrocarbon fuels by the

3 Department that the Secretary considers appropriate.

4 (d) FUNDING.—Of the amounts authorized to be ap5 propriated under section 301(a)(6) for operation and

6 maintenance for defense-wide activities, not more than

7 $5,000,000 shall be available for the pilot program.

8 SEC. 313. PILOT PROGRAM FOR ACCEPTANCE AND USE OF

9 LANDING FEES CHARGED FOR USE OF DO10 MESTIC MILITARY AIRFIELDS BY CIVIL AIR11 CRAFT.

12 (a) PILOT PROGRAM AUTHORIZED.—The Secretary

13 of each military department may carry out a pilot program

14 to demonstrate the use of landing fees as a source of fund15 ing for the operation and maintenance of airfields of the

16 department.

17 (b) IMPOSITION OF LANDING FEES.—Under a pilot

18 program carried out under this section, the Secretary of

19 a military department may prescribe and impose landing

20 fees for use of any military airfield of the department in

21 the United States by civil aircraft during fiscal years 1999

22 and 2000. No fee may be charged under the pilot program

23 for a landing after September 30, 2000.

24 (c) USE OF PROCEEDS.—Amounts received for a fis25 cal year in payment of landing fees imposed under the
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1 pilot program for use of a military airfield shall be cred2 ited to the appropriation that is available for that fiscal

3 year for the operation and maintenance of the military air4 field, shall be merged with amounts in the appropriation

5 to which credited, and shall be available for that military

6 airfield for the same period and purposes as the appropria7 tion is available.

8 (d) REPORT.—Not later than March 31, 2000, the

9 Secretary of Defense shall submit to Congress a report

10 on the pilot programs carried out under this section by

11 the Secretaries of the military departments. The report

12 shall specify the amounts of fees received and retained by

13 each military department under the pilot program as of

14 December 31, 1999.

15 Subtitle C—Environmental

16 Provisions

17 SEC. 321. TRANSPORTATION OF POLYCHLORINATED

18 BIPHENYLS FROM ABROAD FOR DISPOSAL IN

19 THE UNITED STATES.

20 (a) AUTHORITY.—Chapter 157 of title 10, United

21 States Code, is amended by adding at the end the follow22 ing:
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1 ‘‘§ 2646. Transportation of polychlorinated biphenyls

2 from abroad; disposal

3 ‘‘(a) AUTHORITY TO TRANSPORT.—(1) Subject to

4 paragraph (2), the Secretary of the Defense and the Sec5 retaries of the military departments may provide for the

6 transportation into the customs territory of the United

7 States of polychlorinated biphenyls generated by or under

8 the control of the Department of Defense for purposes of

9 their disposal, treatment, or storage in the customs terri10 tory of the United States.

11 ‘‘(2) Polychlorinated biphenyls may be transported

12 into the customs territory of the United States under

13 paragraph (1) only if the Administrator of the Environ14 mental Protection Agency determines that the transpor15 tation will not result in an unreasonable risk of injury to

16 health or the environment.

17 ‘‘(b) DISPOSAL.—(1) The disposal, treatment, and

18 storage of polychlorinated biphenyls transported into the

19 customs territory of the United States under subsection

20 (a) shall be governed by the provisions of the Toxic Sub21 stances Control Act (15 U.S.C. 2601 et seq.).

22 ‘‘(2) A chemical waste landfill may not be used for

23 the disposal, treatment, or storage of polychlorinated

24 biphenyls transported into the customs territory of the

25 United States under subsection (a) unless the landfill

26 meets all of the technical requirements specified in section
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1 761.75(b)(3) of title 40, Code of Federal Regulations, as

2 in effect on the date that was one year before the date

3 of enactment of the National Defense Authorization Act

4 for Fiscal Year 1999.

5 ‘‘(c) CUSTOMS TERRITORY OF THE UNITED STATES

6 DEFINED.—In this section, the term ‘customs territory of

7 the United States’ has the meaning given that term in

8 General Note 2. of the Harmonized Tariff Schedule of the

9 United States.’’.

10 (b) CLERICAL AMENDMENT.—The table of sections

11 at the beginning of that chapter is amended by adding

12 at the end the following:

‘‘2646. Transportation of polychlorinated biphenyls from abroad; disposal.’’.

13 SEC. 322. MODIFICATION OF DEADLINE FOR SUBMITTAL

14 TO CONGRESS OF ANNUAL REPORTS ON EN15 VIRONMENTAL ACTIVITIES.

16 Section 2706 of title 10, United States Code, is

17 amended by striking out ‘‘not later than 30 days’’ each

18 place it appears in subsections (a), (b), (c), and (d) and

19 inserting in lieu thereof ‘‘not later than 45 days’’.

20 SEC. 323. SUBMARINE SOLID WASTE CONTROL.

21 (a) SOLID WASTE DISCHARGE REQUIREMENTS.—

22 Subsection (c)(2) of section 3 of the Act to Prevent Pollu23 tion from Ships (33 U.S.C. 1902) is amended—

24 (1) in subparagraph (A), by adding at the end

25 the following:
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1 ‘‘(iii) With regard to submersibles, non-plastic

2 garbage that has been compacted and weighted to

3 ensure negative buoyancy.’’; and

4 (2) in subparagraph (B)(ii), by striking out

5 ‘‘subparagraph (A)(ii)’’ and inserting in lieu thereof

6 ‘‘clauses (ii) and (iii) of subparagraph (A)’’.

7 (b) CONFORMING AMENDMENT.—Subsection

8 (e)(3)(A) of that section is amended by striking out ‘‘gar9 bage that contains more than the minimum amount prac10 ticable of’’.

11 SEC. 324. PAYMENT OF STIPULATED PENALTIES ASSESSED

12 UNDER CERCLA.

13 The Secretary of Defense may pay, from amounts in

14 the Department of Defense Base Closure Account 1990

15 established by section 2906(a)(1) of the Defense Base Clo16 sure and Realignment Act of 1990 (part A of title XXIX

17 of Public Law 101–510; 10 U.S.C. 2687 note), not more

18 than $15,000 as payment of pay stipulated civil penalties

19 assessed under the Comprehensive Environmental Re20 sponse, Compensation, and Liability Act of 1980 (42

21 U.S.C. 9601 et seq.) against McClellan Air Force Base,

22 California.
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1 SEC. 325. AUTHORITY TO PAY NEGOTIATED SETTLEMENT

2 FOR ENVIRONMENTAL CLEANUP OF FOR3 MERLY USED DEFENSE SITES IN CANADA.

4 (a) FINDINGS.—Congress makes the following find5 ings with respect to the authorization of payment of settle6 ment with Canada in subsection (b) regarding environ7 mental cleanup at formerly used defense sites in Canada:

8 (1) A unique and longstanding national security

9 alliance exists between the United States and Can10 ada.

11 (2) The sites covered by the settlement were

12 formerly used by the United States and Canada for

13 their mutual defense.

14 (3) There is no formal treaty or international

15 agreement between the United States and Canada

16 regarding the environmental cleanup of the sites.

17 (4) Environmental contamination at some of

18 the sites could pose a substantial risk to the health

19 and safety of the United States citizens residing in

20 States near the border between the United States

21 and Canada.

22 (5) The United States and Canada reached a

23 negotiated agreement for an ex-gratia reimburse24 ment of Canada in full satisfaction of claims of Can25 ada relating to environmental contamination which

26 agreement was embodied in an exchange of Notes
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1 between the Government of the United States and

2 the Government of Canada.

3 (6) There is a unique factual basis for authoriz4 ing a reimbursement of Canada for environmental

5 cleanup at sites in Canada after the United States

6 departure from such sites.

7 (7) The basis for and authorization of such re8 imbursement does not extend to similar claims by

9 other nations.

10 (8) The Government of Canada is committed to

11 spending the entire $100,000,000 of the reimburse12 ment authorized in subsection (b) in the United

13 States, which will benefit United States industry and

14 United States workers.

15 (b) AUTHORITY TO MAKE PAYMENTS.—(1) Subject

16 to paragraph (3), the Secretary of Defense may, using

17 funds specified under subsection (c), make a payment de18 scribed in paragraph (2) in each of fiscal years 1999

19 through 2008 for purposes of the ex-gratia reimbursement

20 of Canada in full satisfaction of any and all claims as21 serted against the United States by Canada for environ22 mental cleanup of sites in Canada that were formerly used

23 for the mutual defense of the United States and Canada.

24 (2) A payment referred to in paragraph (1) is a pay25 ment of $10,000,000, in constant fiscal year 1996 dollars,
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1 into the Foreign Military Sales Trust Account for pur2 poses of Canada.

3 (3) A payment may be made under paragraph (1) in

4 any fiscal year after fiscal year 1999 only if the Secretary

5 of Defense submits to Congress with the budget for such

6 fiscal year under section 1105 of title 31, United States

7 Code, evidence that the cumulative amount expended by

8 the Government of Canada for environmental cleanup ac9 tivities in Canada during any fiscal years before such fiscal

10 year in which a payment under that paragraph was au11 thorized was an amount equal to or greater than the ag12 gregate amount of the payments under that paragraph

13 during such fiscal years.

14 (c) SOURCE OF FUNDS.—A payment may be made

15 under subsection (b) in a fiscal year from amounts appro16 priated pursuant to the authorization of appropriations for

17 the Department of Defense for such fiscal year for Oper18 ation and Maintenance, Defense-Wide.

19 SEC. 326. SETTLEMENT OF CLAIMS OF FOREIGN GOVERN20 MENTS FOR ENVIRONMENTAL CLEANUP OF

21 OVERSEAS SITES FORMERLY USED BY THE

22 DEPARTMENT OF DEFENSE.

23 (a) NOTICE OF NEGOTIATIONS.—The President shall

24 notify Congress before entering into any negotiations for

25 the ex-gratia settlement of the claims of a government of
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1 another country against the United States for environ2 mental cleanup of sites in that country that were formerly

3 used by the Department of Defense.

4 (b) AUTHORIZATION REQUIRED FOR USE FUNDS

5 FOR PAYMENT OF SETTLEMENT.—Notwithstanding any

6 other provision of law, no funds may be utilized for any

7 payment under an ex-gratia settlement of any claims de8 scribed in subsection (a) unless the use of the funds for

9 that purpose is specifically authorized by law, treaty, or

10 international agreement.

11 SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERA12 TION PROGRAM.

13 (a) FINDINGS.—Congress makes the following find14 ings:

15 (1) The Secretary of Defense has developed a

16 program to address environmental matters relating

17 to the military activities of the Department of De18 fense in the Arctic region. The program is known as

19 the ‘‘Arctic Military Environmental Cooperation

20 Program’’.

21 (2) The Secretary has carried out the Arctic

22 Military Environmental Cooperation Program using

23 funds appropriated for Cooperative Threat Reduc24 tion programs.
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1 (b) ACTIVITIES UNDER PROGRAM.—(1) Subject to

2 paragraph (2), activities under the Arctic Military Envi3 ronmental Cooperation Program shall include cooperative

4 activities on environmental matters in the Arctic region

5 with the military departments and agencies of other coun6 tries, including the Russian Federation.

7 (2) Activities under the Arctic Military Environ8 mental Cooperation Program may not include any activi9 ties for purposes for which funds for Cooperative Threat

10 Reduction programs have been denied, including the pur11 poses for which funds were denied by section 1503 of the

12 National Defense Authorization Act for Fiscal Year 1997

13 (Public Law 104–201; 110 Stat. 2732).

14 (c) AVAILABILITY OF FISCAL YEAR 1999 FUNDS.—

15 (1) Of the amount authorized to be appropriated by sec16 tion 301(a)(6), $4,000,000 shall be available for carrying

17 out the Arctic Military Environmental Program.

18 (2) Amounts available for the Arctic Military Envi19 ronmental Cooperation Program under paragraph (1) may

20 not be obligated or expended for that Program until 45

21 days after the date on which the Secretary of Defense sub22 mits to the congressional defense committees a plan for

23 the Program under paragraph (3).
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1 (3) The plan for the Arctic Military Environmental

2 Cooperation Program under this paragraph shall include

3 the following:

4 (A) A statement of the overall goals and objec5 tives of the Program.

6 (B) A statement of the proposed activities

7 under the Program and the relationship of such ac8 tivities to the national security interests of the

9 United States.

10 (C) An assessment of the compatibility of the

11 activities set forth under subparagraph (B) with the

12 purposes of the Cooperative Threat Reduction pro13 grams of the Department of Defense (including with

14 any prohibitions and limitations applicable to such

15 programs).

16 (D) An estimate of the funding to be required

17 and requested in future fiscal years for the activities

18 set forth under subparagraph (B).

19 (E) A proposed termination date for the Pro20 gram.
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1 Subtitle D—Counter-Drug

2 Activities

3 SEC. 331. PATROL COASTAL CRAFT FOR DRUG INTERDIC4 TION BY SOUTHERN COMMAND.

5 Of the funds authorized to be appropriated under sec6 tion 301(a)(21), relating to drug interdiction and counter7 drug activities, $18,500,000 shall be available for the

8 equipping and operation of six of the Cyclone class coastal

9 defense ships of the Department of Defense in the Carib10 bean Sea and Eastern Pacific Ocean in support of the

11 drug interdiction efforts of the United States Southern

12 Command.

13 SEC. 332. PROGRAM AUTHORITY FOR DEPARTMENT OF DE14 FENSE SUPPORT FOR COUNTER-DRUG AC15 TIVITIES.

16 (a) EXTENSION OF AUTHORITY.—Subsection (a) of

17 section 1004 of the National Defense Authorization Act

18 for Fiscal Year 1991 (10 U.S.C. 374 note) is amended

19 by striking out ‘‘through 1999’’ and inserting in lieu

20 thereof ‘‘through 2004’’.

21 (b) BASES AND FACILITIES SUPPORT.—(1) Sub22 section (b)(4) of such section is amended by inserting ‘‘of

23 the Department of Defense or any Federal, State, local,

24 or foreign law enforcement agency’’ after ‘‘counter-drug

25 activities’’.
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1 (2) Section 1004 of such Act is further amended by

2 adding at the end the following:

3 ‘‘(h) CONGRESSIONAL NOTIFICATION OF FACILITIES

4 PROJECTS.—(1) Not later than 21 days before obligating

5 funds for beginning the work on a project described in

6 paragraph (2), the Secretary of Defense shall submit to

7 the congressional defense committees a notification of the

8 project, including the scope and estimated total cost of the

9 project.

10 ‘‘(2) Paragraph (1) applies to a project for the modi11 fication or repair of a Department of Defense facility for

12 the purpose set forth in subsection (b)(4) that is estimated

13 to cost more than $500,000.’’.

14 SEC. 333. SOUTHWEST BORDER FENCE.

15 (a) LIMITATION OF FUNDING FOR EXPANSION.—

16 None of the funds authorized to be appropriated for the

17 Department of Defense by this Act may be used to expand

18 the Southwest border fence until the Secretary of Defense

19 submits the report required by subsection (b).

20 (b) REPORT.—The Secretary of Defense shall submit

21 to the congressional defense committees a report on the

22 extent to which the Southwest border fence has reduced

23 the illegal transportation of narcotics and other drugs into

24 the United States.
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1 (c) SOUTHWEST BORDER FENCE DEFINED.—In this

2 section, the term ‘‘Southwest border fence’’ means the

3 fence that was constructed, at Department of Defense ex4 pense, along the southwestern border of the United States

5 for the purpose of preventing or reducing the illegal trans6 portation of narcotics and other drugs into the United

7 States.

8 Subtitle E—Other Matters

9 SEC. 341. LIQUIDITY OF WORKING-CAPITAL FUNDS.

10 (a) INCREASED CASH BALANCES.—The Secretary of

11 Defense shall administer the working-capital funds of the

12 Department of Defense during fiscal year 1999 so as to

13 ensure that the total amount of the cash balances in such

14 funds on September 30, 1999, exceeds the total amount

15 of the cash balances in such funds on September 30, 1998,

16 by $1,300,000,000.

17 (b) ACTIONS REGARDING UNBUDGETED LOSSES AND

18 GAINS.—(1) In order to achieve the increase in cash bal19 ances in working-capital funds required under subsection

20 (a), the Under Secretary of Defense (Comptroller) shall—

21 (A) assess surcharges on the rates charged to

22 Department of Defense activities for the perform23 ance of depot-level maintenance and repair work24 loads for those activities in fiscal year 1999 as nec25 essary to recoup for the working-capital funds the
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1 amounts of any operational losses that are incurred

2 in the performance of those workloads in excess of

3 the amounts of the losses that are budgeted for fis4 cal year 1999; and

5 (B) return to Department of Defense activities

6 any amounts that—

7 (i) are realized for the working-capital

8 funds for depot-level maintenance and repair

9 workloads in excess of the estimated revenues

10 budgeted for the performance of those work11 loads that originate in those activities; and

12 (ii) are not needed to achieve the required

13 increase in cash balances.

14 (2) The Under Secretary of Defense (Comptroller)

15 shall prescribe policies and procedures for carrying out

16 paragraph (1). The policies and procedures shall include

17 a prohibition on applying assessments of surcharges to a

18 Department of Defense activity more frequently than once

19 every six months.

20 (c) WAIVER.—(1) The Secretary of Defense may

21 waive the requirements of this section upon certifying to

22 Congress, in writing, that the waiver is necessary to meet

23 requirements associated with—

24 (A) a contingency operation (as defined in sec25 tion 101(a)(13) of title 10, United States Code); or
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1 (B) an operation of the Armed Forces that

2 commenced before October 1, 1998, and continues

3 during fiscal year 1999.

4 (2) The waiver authority under paragraph (1) may

5 not be delegated to any official other than the Deputy Sec6 retary of Defense.

7 (d) SEMIANNUAL REPORT.—(1) The Under Sec8 retary shall submit to the Committee on Armed Services

9 of the Senate and the Committee on National Security of

10 the House of Representatives—

11 (A) not later than May 1, 1999, a report on the

12 administration of this section for the 6-month period

13 ending on March 31, 1999; and

14 (B) not later than November 1, 1999, a report

15 on the administration of this section for the 6-month

16 period ending on September 30, 1999.

17 (2) Each report shall include, for the 6-month period

18 covered by the report, the following:

19 (A) The profit and loss status of each working20 capital fund activity.

21 (B) The actions taken by the Secretary of each

22 military department to use assessments of sur23 charges to correct for unbudgeted losses and gains.
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1 SEC. 342. TERMINATION OF AUTHORITY TO MANAGE

2 WORKING-CAPITAL FUNDS AND CERTAIN AC3 TIVITIES THROUGH THE DEFENSE BUSINESS

4 OPERATIONS FUND.

5 (a) REVISION OF CERTAIN DBOF PROVISIONS AND

6 REENACTMENT TO APPLY TO WORKING-CAPITAL FUNDS

7 GENERALLY.—Section 2208 of title 10, United States

8 Code, is amended by adding at the end the following:

9 ‘‘(m) CAPITAL ASSET SUBACCOUNTS.—Amounts

10 charged for depreciation of capital assets shall be credited

11 to a separate capital asset subaccount established within

12 a working-capital fund.

13 ‘‘(n) SEPARATE ACCOUNTING, REPORTING, AND AU14 DITING OF FUNDS AND ACTIVITIES.—The Secretary of

15 Defense, with respect to the working-capital funds of each

16 Defense Agency, and the Secretary of each military de17 partment, with respect to the working-capital funds of the

18 military department, shall provide in accordance with this

19 subsection for separate accounting, reporting, and audit20 ing of funds and activities managed through the working21 capital funds.

22 ‘‘(o) CHARGES FOR GOODS AND SERVICES PROVIDED

23 THROUGH THE FUND.—(1) Charges for goods and serv24 ices provided for an activity through a working-capital

25 fund shall include the following:
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1 ‘‘(A) Amounts necessary to recover the full

2 costs of the goods and services provided for that ac3 tivity.

4 ‘‘(B) Amounts for depreciation of capital assets,

5 set in accordance with generally accepted accounting

6 principles.

7 ‘‘(2) Charges for goods and services provided through

8 a working-capital fund may not include the following:

9 ‘‘(A) Amounts necessary to recover the costs of

10 a military construction project (as defined in section

11 2801(b) of this title), other than a minor construc12 tion project financed by the fund pursuant to section

13 2805(c)(1) of this title.

14 ‘‘(B) Amounts necessary to cover costs incurred

15 in connection with the closure or realignment of a

16 military installation.

17 ‘‘(C) Amounts necessary to recover the costs of

18 functions designated by the Secretary of Defense as

19 mission critical, such as ammunition handling safe20 ty, and amounts for ancillary tasks not directly re21 lated to the mission of the function or activity man22 aged through the fund.

23 ‘‘(p) PROCEDURES FOR ACCUMULATION OF

24 FUNDS.—The Secretary of Defense, with respect to each

25 working-capital fund of a Defense Agency, and the Sec-
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1 retary of a military department, with respect to each work2 ing-capital fund of the military department, shall establish

3 billing procedures to ensure that the balance in that work4 ing-capital fund does not exceed the amount necessary to

5 provide for the working-capital requirements of that fund,

6 as determined by the Secretary concerned.

7 ‘‘(q) ANNUAL REPORTS AND BUDGET.—The Sec8 retary of Defense, with respect to each working-capital

9 fund of a Defense Agency, and the Secretary of each mili10 tary department, with respect to each working-capital

11 fund of the military department, shall annually submit to

12 Congress, at the same time that the President submits the

13 budget under section 1105 of title 31, the following:

14 ‘‘(1) A detailed report that contains a state15 ment of all receipts and disbursements of the fund

16 (including such a statement for each subaccount of

17 the fund) for the fiscal year ending in the year pre18 ceding the year in which the budget is submitted.

19 ‘‘(2) A detailed proposed budget for the oper20 ation of the fund for the fiscal year for which the

21 budget is submitted.

22 ‘‘(3) A comparison of the amounts actually ex23 pended for the operation of the fund for the fiscal

24 year referred to in paragraph (1) with the amount
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1 proposed for the operation of the fund for that fiscal

2 year in the President’s budget.

3 ‘‘(4) A report on the capital asset subaccount of

4 the fund that contains the following information:

5 ‘‘(A) The opening balance of the sub6 account as of the beginning of the fiscal year in

7 which the report is submitted.

8 ‘‘(B) The estimated amounts to be credited

9 to the subaccount in the fiscal year in which the

10 report is submitted.

11 ‘‘(C) The estimated amounts of outlays to

12 be paid out of the subaccount in the fiscal year

13 in which the report is submitted.

14 ‘‘(D) The estimated balance of the sub15 account at the end of the fiscal year in which

16 the report is submitted.

17 ‘‘(E) A statement of how much of the esti18 mated balance at the end of the fiscal year in

19 which the report is submitted will be needed to

20 pay outlays in the immediately following fiscal

21 year that are in excess of the amount to be

22 credited to the subaccount in the immediately

23 following fiscal year.’’.
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1 (b) REPEAL OF AUTHORITY TO MANAGE THROUGH

2 THE DEFENSE BUSINESS OPERATIONS FUND.—(1) Sec3 tion 2216a of title 10, United States Code, is repealed.

4 (2) The table of sections at the beginning of chapter

5 131 of such title is amended by striking out the item relat6 ing to section 2216a.

7 SEC. 343. CLARIFICATION OF AUTHORITY TO RETAIN RE8 COVERED COSTS OF DISPOSALS IN WORKING9 CAPITAL FUNDS.

10 Section 2210(a) of title 10, United States Code, is

11 amended to read as follows:

12 ‘‘(a)(1) A working-capital fund established pursuant

13 to section 2208 of this title may retain so much of the

14 proceeds of disposals of property referred to in paragraph

15 (2) as is necessary to recover the expenses incurred by

16 the fund in disposing of such property. Proceeds from the

17 sale or disposal of such property in excess of amounts nec18 essary to recover the expenses may be credited to current

19 applicable appropriations of the Department of Defense.

20 ‘‘(2) Paragraph (1) applies to disposals of supplies,

21 material, equipment, and other personal property that

22 were not financed by stock funds established under section

23 2208 of this title.’’.
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1 SEC. 344. BEST COMMERCIAL INVENTORY PRACTICES FOR

2 MANAGEMENT OF SECONDARY SUPPLY

3 ITEMS.

4 (a) DEVELOPMENT AND SUBMISSION OF SCHED5 ULE.—Not later than 180 days after the date of the enact6 ment of this Act, the Secretary of each military depart7 ment shall develop and submit to Congress a schedule for

8 implementing within the military department, for second9 ary supply items managed by that military department,

10 inventory practices identified by the Secretary as being the

11 best commercial inventory practices for the acquisition

12 and distribution of such supply items consistent with mili13 tary requirements. The schedule shall provide for the im14 plementation of such practices to be completed not later

15 than five years after the date of the enactment of this Act.

16 (b) DEFINITION.—For purposes of this section, the

17 term ‘‘best commercial inventory practice’’ includes cel18 lular repair processes, use of third-party logistics provid19 ers, and any other practice that the Secretary determines

20 will enable the military department to reduce inventory

21 levels and holding costs while improving the responsive22 ness of the supply system to user needs.

23 (c) GAO REPORTS ON MILITARY DEPARTMENT AND

24 DEFENSE LOGISTICS AGENCY SCHEDULES.—(1) Not

25 later than 240 days after the date of the enactment of

26 this Act, the Comptroller General shall submit to Congress
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1 a report evaluating the extent to which the Secretary of

2 each military department has complied with the require3 ments of this section.

4 (2) Not later than 18 months after the date on which

5 the Director of the Defense Logistics Agency submits to

6 Congress a schedule for implementing best commercial in7 ventory practices under section 395 of the National De8 fense Authorization Act for Fiscal Year 1998 (Public Law

9 105–85; 111 Stat. 1718; 10 U.S.C. 2458 note), the Comp10 troller General shall submit to Congress an evaluation of

11 the extent to which best commercial inventory practices

12 are being implemented in the Defense Logistics Agency

13 in accordance with that schedule.

14 SEC. 345. INCREASED USE OF SMART CARDS.

15 (a) FUNDING FOR INCREASED USE GENERALLY.—

16 Of the funds available for the Navy for fiscal year 1999

17 for operation and maintenance, the Secretary of the Navy

18 shall allocate sufficient amounts, up to $25,000,000, to

19 making significant progress toward ensuring that smart

20 cards having a multi-application, multi-technology auto21 mated reading capability are issued and used throughout

22 the Navy and the Marine Corps for purposes for which

23 such cards are suitable.

24 (b) DEPLOYMENT OF SMART CARDS.—(1) Not later

25 than March 31, 1999, the Secretary of the Navy shall
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1 equip with smart card technology at least one carrier bat2 tle group, one carrier air wing, and one amphibious readi3 ness group (including the Marine Corps units embarked

4 on the vessels of such battle and readiness groups) in each

5 of the United States Atlantic Command and the United

6 States Pacific Command.

7 (2) None of the funds appropriated pursuant to any

8 authorization of appropriations in this Act may be ex9 pended after March 31, 1999, for the procurement of the

10 Joint Uniformed Services Identification card for, or for

11 the issuance of such card to, members of the Navy or the

12 Marine Corps until the Secretary of the Navy certifies in

13 writing to the Committee on Armed Services of the Senate

14 and the Committee on National Security of the House of

15 Representatives that the Secretary has completed the

16 issuance of smart cards in accordance with paragraph (1).

17 (c) PLAN.—Not later than March 31, 1999, the Sec18 retary of the Navy shall submit to the congressional de19 fense committees a plan for equipping all operational

20 naval units with smart card technology. The Secretary

21 shall include in the plan estimates of the costs of, and

22 the savings to be derived from, carrying out the plan.

23 (d) SMART CARD DEFINED.—In this section, the

24 term ‘‘smart card’’ means a credit card size device that

25 contains one or more integrated-circuits.
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1 SEC. 346. PUBLIC-PRIVATE COMPETITION IN THE PROVI2 SION OF SUPPORT SERVICES.

3 (a) SENSE OF THE SENATE.—It is the sense of the

4 Senate that the Secretary of Defense should take action

5 to initiate public-private competitions pursuant to Office

6 of Management and Budget Circular A–76 for functions

7 of the Department of Defense involving not fewer than

8 a number of employees equivalent to 30,000 full-time em9 ployees for each of fiscal years 1999, 2000, 2001, 2002,

10 2003, and 2004.

11 (b) SMALL FUNCTIONS QUALIFIED FOR A WAIVER

12 OF THE NOTIFICATION AND REPORTING REQUIREMENTS

13 FOR CONVERSION TO CONTRACTOR PERFORMANCE.—(1)

14 Section 2461(d) of title 10, United States Code, is amend15 ed by striking out ‘‘20 or fewer’’ and inserting in lieu

16 thereof ‘‘50 or fewer’’.

17 (2) Notwithstanding any other provision of law, no

18 study, notification, or report may be required pursuant to

19 subsection (a), (b), or (c) of section 2461 of title 10,

20 United States Code, or Office of Management and Budget

21 Circular A–76 for functions that are being performed by

22 50 or fewer Department of Defense civilian employees.

23 (c) BEST OVERALL VALUE TO THE TAXPAYER.—Sec24 tion 2462(a) of title 10, United States Code, is amended

25 by striking out ‘‘at a cost that is lower’’ and all that fol26 lows through the period at the end and inserting in lieu
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1 thereof: ‘‘at a lower cost than the cost at which the De2 partment can provide the same supply or service or at a

3 better overall value than the value that the Department

4 can provide for the same supply or service. Each deter5 mination regarding relative cost or relative overall value

6 shall be based on an objective evaluation of cost and per7 formance-related factors and shall include the consider8 ation of any cost differential required by law, Executive

9 order, or regulation.’’.

10 (d) EFFECTIVE DATE.—Subsections (b) and (c), and

11 the amendments made by such subsections, shall take ef12 fect on January 1, 2001.

13 SEC. 347. CONDITION FOR PROVIDING FINANCIAL ASSIST14 ANCE FOR SUPPORT OF ADDITIONAL DUTIES

15 ASSIGNED TO THE ARMY NATIONAL GUARD.

16 (a) COMPETITIVE SOURCE SELECTION.—Section

17 113(b) of title 32, United States Code, is amended to read

18 as follows:

19 ‘‘(b) COVERED ACTIVITIES.—(1) Except as provided

20 in paragraph (2), financial assistance may be provided for

21 the performance of an activity by the Army National

22 Guard under subsection (a) only if—

23 ‘‘(A) the activity is carried out in the perform24 ance of a responsibility of the Secretary of the Army
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1 under paragraph (6), (10), or (11) of section

2 3013(b) of title 10; and

3 ‘‘(B) the Army National Guard was selected to

4 perform the activity under competitive procedures

5 that permit all responsible private-sector sources to

6 submit offers and be considered for selection to per7 form the activity on the basis of the offers.

8 ‘‘(2) Paragraph (1)(B) does not apply to an activity

9 that, on the date of the enactment of the National Defense

10 Authorization Act for Fiscal Year 1999, was performed

11 for the Federal Government by employees of the Federal

12 Government or employees of a State.’’.

13 (b) PROSPECTIVE APPLICABILITY.—Subparagraph

14 (B) of section 113(b)(1) of title 32, United States Code

15 (as amended by subsection (a) of this section), does not

16 apply to—

17 (1) financial assistance provided under that sec18 tion before October 1, 1998; or

19 (2) financial assistance for an activity that, on

20 or before May 8, 1998, the Secretary of the Army

21 identified in writing as being under consideration for

22 supporting with financial assistance under such sec23 tion.
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1 SEC. 348. REPEAL OF PROHIBITION ON JOINT USE OF

2 GRAY ARMY AIRFIELD, FORT HOOD, TEXAS.

3 Section 319 of the National Defense Authorization

4 Act for Fiscal Year 1987 (Public Law 99–661; 100 Stat.

5 3855), relating to a prohibition on the joint military-civil6 ian use of Robert Gray Army Airfield, Fort Hood, Texas,

7 is repealed.

8 TITLE IV—MILITARY

9 PERSONNEL AUTHORIZATIONS

10 Subtitle A—Active Forces

11 SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

12 The Armed Forces are authorized strengths for active

13 duty personnel as of September 30, 1999, as follows:

14 (1) The Army, 480,000.

15 (2) The Navy, 372,696.

16 (3) The Marine Corps, 172,200.

17 (4) The Air Force, 370,882.

18 SEC. 402. LIMITED EXCLUSIONS OF JOINT DUTY OFFICERS

19 FROM LIMITATIONS ON NUMBER OF GEN20 ERAL AND FLAG OFFICERS.

21 (a) ONE ADDITIONAL EXEMPTION FROM PERCENT22 AGE LIMITATION ON NUMBER OF LIEUTENANT GEN23 ERALS AND VICE ADMIRALS.—Section 525(b)(4)(B) of

24 title 10, United States Code, is amended by striking out

25 ‘‘six’’ and inserting in lieu thereof ‘‘seven’’.
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1 (b) EXTENSION OF AUTHORITY TO EXCLUDE UP TO

2 12 JOINT DUTY OFFICERS FROM LIMITATION ON AU3 THORIZED GENERAL AND FLAG OFFICER STRENGTH.—

4 Section 526(b)(2) of such title is amended by striking out

5 ‘‘October 1, 1998’’ and inserting in lieu thereof ‘‘October

6 1, 2002’’.

7 SEC. 403. LIMITATION ON DAILY AVERAGE OF PERSONNEL

8 ON ACTIVE DUTY IN GRADES E–8 AND E–9.

9 (a) FISCAL YEAR BASIS FOR APPLICATION OF LIMI10 TATION.—The first sentence of section 517(a) of title 10,

11 United States Code, is amended—

12 (1) by striking out ‘‘a calendar year’’ and in13 serting in lieu thereof ‘‘a fiscal year’’; and

14 (2) by striking out ‘‘January 1 of that year’’

15 and inserting in lieu thereof ‘‘the first day of that

16 fiscal year’’.

17 (b) CORRECTION OF CROSS REFERENCE.—Such sen18 tence is further amended by striking out ‘‘Except as pro19 vided in section 307 of title 37, the’’ and inserting in lieu

20 thereof ‘‘The’’.

21 SEC. 404. REPEAL OF PERMANENT END STRENGTH RE22 QUIREMENT FOR SUPPORT OF TWO MAJOR

23 REGIONAL CONTINGENCIES.

24 (a) REPEAL.—Section 691 of title 10, United States

25 Code, is repealed.
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1 (b) CLERICAL AMENDMENT.—The table of sections

2 at the beginning of chapter 39 of such title is amended

3 by striking out the item relating to section 691.

4 Subtitle B—Reserve Forces

5 SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

6 (a) IN GENERAL.—The Armed Forces are authorized

7 strengths for Selected Reserve personnel of the reserve

8 components as of September 30, 1999, as follows:

9 (1) The Army National Guard of the United

10 States, 357,000.

11 (2) The Army Reserve, 208,000.

12 (3) The Naval Reserve, 90,843.

13 (4) The Marine Corps Reserve, 40,018.

14 (5) The Air National Guard of the United

15 States, 106,991.

16 (6) The Air Force Reserve, 74,242.

17 (7) The Coast Guard Reserve, 8,000.

18 (b) WAIVER AUTHORITY.—The Secretary of Defense

19 may vary an end strength authorized by subsection (a) by

20 not more than 2 percent.

21 (c) ADJUSTMENTS.—The end strengths prescribed by

22 subsection (a) for the Selected Reserve of any reserve com23 ponent shall be proportionately reduced by—

24 (1) the total authorized strength of units orga25 nized to serve as units of the Selected Reserve of
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1 such component which are on active duty (other

2 than for training) at the end of the fiscal year, and

3 (2) the total number of individual members not

4 in units organized to serve as units of the Selected

5 Reserve of such component who are on active duty

6 (other than for training or for unsatisfactory partici7 pation in training) without their consent at the end

8 of the fiscal year.

9 Whenever such units or such individual members are re10 leased from active duty during any fiscal year, the end

11 strength prescribed for such fiscal year for the Selected

12 Reserve of such reserve component shall be proportion13 ately increased by the total authorized strengths of such

14 units and by the total number of such individual members.

15 SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE

16 DUTY IN SUPPORT OF THE RESERVES.

17 Within the end strengths prescribed in section

18 411(a), the reserve components of the Armed Forces are

19 authorized, as of September 30, 1999, the following num20 ber of Reserves to be serving on full-time active duty or

21 full-time duty, in the case of members of the National

22 Guard, for the purpose of organizing, administering, re23 cruiting, instructing, or training the reserve components:

24 (1) The Army National Guard of the United

25 States, 21,763.
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1 (2) The Army Reserve, 11,804.

2 (3) The Naval Reserve, 15,590.

3 (4) The Marine Corps Reserve, 2,362.

4 (5) The Air National Guard of the United

5 States, 10,930.

6 (6) The Air Force Reserve, 991.

7 SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS

8 (DUAL STATUS).

9 The reserve components of the Army and the Air

10 Force are authorized strengths for military technicians

11 (dual status) as of September 30, 1999, as follows:

12 (1) For the Army Reserve, 5,205.

13 (2) For the Army National Guard of the United

14 States, 22,179.

15 (3) For the Air Force Reserve, 9,761.

16 (4) For the Air National Guard of the United

17 States, 22,408.

18 SEC. 414. EXCLUSION OF ADDITIONAL RESERVE COMPO19 NENT GENERAL AND FLAG OFFICERS FROM

20 LIMITATION ON NUMBER OF GENERAL AND

21 FLAG OFFICERS WHO MAY SERVE ON ACTIVE

22 DUTY.

23 Section 526(d) of title 10, United States Code, is

24 amended to read as follows:
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1 ‘‘(d) EXCLUSION OF CERTAIN RESERVE OFFI2 CERS.—(1) Subject to paragraph (2), the limitations of

3 this section do not apply to the following reserve compo4 nent general or flag officers:

5 ‘‘(A) A general or flag officer who is on active

6 duty for training.

7 ‘‘(B) A general or flag officer who is on active

8 duty under a call or order specifying a period of less

9 than 180 days.

10 ‘‘(C) A general or flag officer who is on active

11 duty under a call or order specifying a period of

12 more than 179 days.

13 ‘‘(2) The number of general or flag officers of an

14 armed force that are excluded from the applicability of the

15 limitations of this section under paragraph (1)(C) at any

16 one time may not exceed the number equal to three per17 cent of the number specified for that armed force under

18 subsection (a).’’.

19 SEC. 415. INCREASE IN NUMBERS OF MEMBERS IN CER20 TAIN GRADES AUTHORIZED TO BE ON ACTIVE

21 DUTY IN SUPPORT OF THE RESERVES.

22 (a) OFFICERS.—The table in section 12011(a) of title

23 10, United States Code, is amended to read as follows:

‘‘Grade Army Navy Air

Force

Marine

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’’.
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1 (b) SENIOR ENLISTED MEMBERS.—The table in sec2 tion 12012(a) of title 10, United States Code, is amended

3 to read as follows:

‘‘Grade Army Navy Air

Force

Marine

Corps

E–9 .......................................................................................... 623 202 395 20

E–8 .......................................................................................... 2,585 429 997 94’’.

4 SEC. 416. CONSOLIDATION OF STRENGTH AUTHORIZA5 TIONS FOR ACTIVE STATUS NAVAL RESERVE

6 FLAG OFFICERS OF THE NAVY MEDICAL DE7 PARTMENT STAFF CORPS.

8 Section 12004(c) of subtitle E of title 10, United

9 States Code, is amended—

10 (1) in the table in paragraph (1)—

11 (A) by striking out the item relating to the

12 Medical Corps and inserting in lieu thereof the

13 following:

‘‘Medical Department staff corps ............................................ 9’’;

14 and

15 (B) by striking out the items relating to

16 the Dental Corps, the Nurse Corps, and the

17 Medical Service Corps; and

18 (2) by adding at the end the following:

19 ‘‘(4)(A) For the purposes of paragraph (1), the Medi20 cal Department staff corps referred to in the table are as

21 follows:

22 ‘‘(i) The Medical Corps.
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1 ‘‘(ii) The Dental Corps.

2 ‘‘(iii) The Nurse Corps.

3 ‘‘(iv) The Medical Service Corps.

4 ‘‘(B) Each of the Medical Department staff corps is

5 authorized one rear admiral (lower half) within the

6 strength authorization distributed to the Medical Depart7 ment staff corps under paragraph (1). The Secretary of

8 the Navy shall distribute the remainder of the strength

9 authorization for the Medical Department staff corps

10 under that paragraph among those staff corps as the Sec11 retary determines appropriate to meet the needs of the

12 Navy.’’.

13 Subtitle C—Authorization of

14 Appropriations

15 SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILI16 TARY PERSONNEL.

17 There is hereby authorized to be appropriated to the

18 Department of Defense for military personnel for fiscal

19 year 1999 a total of $70,434,386,000. The authorization

20 in the preceding sentence supersedes any other authoriza21 tion of appropriations (definite or indefinite) for such pur22 pose for fiscal year 1999.
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1 TITLE V—MILITARY PERSONNEL

2 POLICY

3 Subtitle A—Officer Personnel

4 Policy

5 SEC. 501. STREAMLINED SELECTIVE RETENTION PROCESS

6 FOR REGULAR OFFICERS.

7 (a) REPEAL OF REQUIREMENT FOR DUPLICATIVE

8 BOARD.—Section 1183 of title 10, United States Code,

9 is repealed.

10 (b) CONFORMING AMENDMENTS.—(1) Section

11 1182(c) of such title is amended by striking out ‘‘send

12 the record of proceedings to a board of review convened

13 under section 1183 of this title’’ and inserting in lieu

14 thereof ‘‘recommend to the Secretary concerned that the

15 officer not be retained on active duty’’.

16 (2) Section 1184 of such title is amended by striking

17 out ‘‘board of review convened under section 1183 of this

18 title’’ and inserting in lieu thereof ‘‘board of inquiry con19 vened under section 1182 of this title’’.

20 (c) CLERICAL AMENDMENTS.—(1) The heading for

21 section 1184 of such title is amended by striking out ‘‘re22 view’’ and inserting in lieu thereof ‘‘inquiry’’.

23 (2) The table of sections at the beginning of chapter

24 60 of such title is amended by striking out the items relat-
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1 ing to sections 1183 and 1184 and inserting in lieu thereof

2 the following:

‘‘1184. Removal of officer: action by Secretary upon recommendation of board

of inquiry.’’.

3 SEC. 502. PERMANENT APPLICABILITY OF LIMITATIONS

4 ON YEARS OF ACTIVE NAVAL SERVICE OF

5 NAVY LIMITED DUTY OFFICERS IN GRADES

6 OF COMMANDER AND CAPTAIN.

7 (a) COMMANDERS.—Section 633 of title 10, United

8 States Code, is amended—

9 (1) by striking out ‘‘Except an officer’’ and all

10 that follows through ‘‘or section 6383 of this title

11 applies’’ and inserting in lieu thereof ‘‘Except an of12 ficer of the Navy or Marine Corps who is an officer

13 designated for limited duty to whom section 5596(e)

14 or 6383 of this title applies’’; and

15 (2) by striking out the second sentence.

16 (b) CAPTAINS.—Section 634 of such title is amend17 ed—

18 (1) by inserting ‘‘an officer of the Navy who is

19 designated for limited duty to whom section

20 6383(a)(4) of this title applies and except’’ in the

21 first sentence after ‘‘Except’’; and

22 (2) by striking out the second sentence.
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1 (c) YEARS OF ACTIVE NAVAL SERVICE.—Section

2 6383(a) of such title is amended by striking out paragraph

3 (5).

4 (d) LIMITATIONS ON SELECTIVE RETENTIONS.—Sec5 tion 6383(k) of such title is amended by striking out the

6 last sentence.

7 SEC. 503. INVOLUNTARY SEPARATION PAY DENIED FOR

8 OFFICER DISCHARGED FOR FAILURE OF SE9 LECTION FOR PROMOTION REQUESTED BY

10 THE OFFICER.

11 (a) INELIGIBILITY FOR SEPARATION PAY.—Section

12 1174(a) of title 10, United States Code, is amended by

13 adding at the end the following:

14 ‘‘(3) Notwithstanding paragraphs (1) and (2), an of15 ficer discharged for twice failing of selection for promotion

16 to the next higher grade is not entitled to separation pay

17 under this section if the officer submitted a request not

18 to be selected for promotion to any selection board that

19 considered and did not select the officer for promotion to

20 that grade.’’.

21 (b) REPORT OF SELECTION BOARD TO NAME OFFI22 CERS REQUESTING NONSELECTION.—Section 617 of such

23 title is amended by adding at the end the following:

24 ‘‘(c) A selection board convened under section 611(a)

25 of this title shall include in its report to the Secretary con-
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1 cerned the name of any regular officer considered and not

2 recommended by the board for promotion who submitted

3 to the board a request not to be selected for promotion.’’.

4 (c) EFFECTIVE DATE.—This section and the amend5 ments made by this section shall take effect on the date

6 of the enactment of this Act and shall apply with respect

7 to selection boards convened under section 611(a) of title

8 10, United States Code, on or after that date.

9 SEC. 504. TERM OF OFFICE OF THE CHIEF OF THE AIR

10 FORCE NURSE CORPS.

11 Section 8069(b) of title 10, United States Code, is

12 amended in the third sentence by striking out ‘‘and’’ and

13 inserting in lieu thereof the following: ‘‘except that the

14 Secretary may increase the limit to four years in any case

15 in which the Secretary determines that special cir16 cumstances justify a longer term of service in the position.

17 An officer appointed as Chief’’.

18 Subtitle B—Reserve Component

19 Matters

20 SEC. 511. SERVICE REQUIRED FOR RETIREMENT OF NA21 TIONAL GUARD OFFICER IN HIGHER GRADE.

22 (a) REVISION OF REQUIREMENT.—Subparagraph

23 (E) of section 1370(d)(3) of title 10, United States Code,

24 is amended to read as follows:
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1 ‘‘(E) To the extent authorized by the Secretary of

2 the military department concerned, a person who, after

3 having been found qualified for Federal recognition in a

4 higher grade by a board under section 307 of title 32,

5 serves in a position for which that grade is the minimum

6 authorized grade and is appointed as a reserve officer in

7 that grade may be credited for the purposes of subpara8 graph (A) as having served in that grade. The period of

9 the service for which credit is afforded under the preceding

10 sentence may only be the period for which the person

11 served in the position after the Senate provides advice and

12 consent for the appointment.’’.

13 (b) EFFECTIVE DATE.—The amendment made by

14 subsection (a) shall take effect on the date of the enact15 ment of this Act and shall apply with respect to appoint16 ments to higher grades that take effect after that date.

17 SEC. 512. REDUCED TIME-IN-GRADE REQUIREMENT FOR

18 RESERVE GENERAL AND FLAG OFFICERS IN19 VOLUNTARILY TRANSFERRED FROM ACTIVE

20 STATUS.

21 (a) MINIMUM SERVICE IN ACTIVE STATUS.—Section

22 1370(d)(3) of title 10, United States Code, as amended

23 by section 511, is further amended by adding at the end

24 the following new subparagraph:
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1 ‘‘(F) A person covered by subparagraph (A) who has

2 completed at least six months of satisfactory service in a

3 grade above colonel or (in the case of the Navy) captain

4 and, while serving in an active status in such grade, is

5 involuntarily transferred (other than for cause) from ac6 tive status may be credited with satisfactory service in the

7 grade in which serving at the time of such transfer, not8 withstanding failure of the person to complete three years

9 of service in that grade.’’.

10 (b) EFFECTIVE DATE.—Subparagraph (F) of such

11 section, as added by subsection (a), shall take effect on

12 the date of the enactment of this Act and shall apply with

13 respect to transfers referred to in such subparagraph that

14 are made on or after that date.

15 SEC. 513. ELIGIBILITY OF ARMY AND AIR FORCE RESERVE

16 BRIGADIER GENERALS TO BE CONSIDERED

17 FOR PROMOTION WHILE ON INACTIVE STA18 TUS LIST.

19 (a) WAIVER OF ACTIVE STATUS REQUIREMENT.—

20 Chapter 1405 of title 10, United States Code, is amended

21 by adding at the end the following:
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1 ‘‘§ 14318. Officers on inactive status list: eligibility of

2 Army and Air Force reserve brigadier

3 generals for consideration for promotion

4 ‘‘(a) WAIVER OF ONE-YEAR ACTIVE STATUS

5 RULE.—The Secretary concerned may waive the eligibility

6 requirements in section 14301(a) of this title (and the re7 quirement in section 140101(a) of this title that an officer

8 be on a reserve active-status list) in the case of a general

9 officer referred to in subsection (b) and authorize the offi10 cer to be considered for promotion under this chapter by

11 a promotion board convened under section 14101(a) of

12 this title.

13 ‘‘(b) APPLICABILITY.—Subsection (a) applies to a re14 serve officer of the Army or Air Force who—

15 ‘‘(1) is on the inactive status list of the Standby

16 Reserve in the grade of brigadier general pursuant

17 to a transfer under section 14314(a)(2) of this title;

18 ‘‘(2) has been on the inactive status list pursu19 ant to the transfer for less than one year as of the

20 date of the convening of the promotion board that

21 is to consider the officer for promotion; and

22 ‘‘(3) during the one-year period ending on the

23 date of the transfer to the inactive status list, con24 tinuously performed service on either the reserve ac25 tive-status list, the active-duty list, or a combination

26 of both lists.’’.
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1 (b) CLERICAL AMENDMENT.—The table of sections

2 at the beginning of such chapter is amended by adding

3 at the end the following:

‘‘14318. Officers on inactive status list: eligibility of Army and Air Force reserve

brigadier generals for consideration for promotion.’’.

4 SEC. 514. COMPOSITION OF SELECTIVE EARLY RETIRE5 MENT BOARDS FOR REAR ADMIRALS OF THE

6 NAVAL RESERVE AND MAJOR GENERALS OF

7 THE MARINE CORPS RESERVE.

8 Section 14705(b) of title 10, United States Code, is

9 amended—

10 (1) by inserting ‘‘(1)’’ after ‘‘(b) BOARDS.—’’;

11 and

12 (2) by adding at the end the following:

13 ‘‘(2) In the case of a board convened to consider the

14 early retirement of officers in the grade of rear admiral

15 in the Naval Reserve or major general in the Marine Corps

16 Reserve, the Secretary of the Navy may prescribe the com17 position of the board notwithstanding section 14102(b) of

18 this title. In doing so, however, the Secretary shall ensure

19 that each regular commissioned officer of the Navy or the

20 Marine Corps appointed to the board holds a permanent

21 grade higher than the grade of the officers under consider22 ation by the board and that at least one member of the

23 board is a reserve officer who holds the grade of rear ad24 miral or major general.’’.
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1 SEC. 515. USE OF RESERVES FOR EMERGENCIES INVOLV2 ING WEAPONS OF MASS DESTRUCTION.

3 (a) ORDER TO ACTIVE DUTY.—(1) Section 12304 of

4 title 10, United States Code, is amended—

5 (A) in subsection (a), by inserting ‘‘or is nec6 essary to provide assistance referred to in subsection

7 (b)’’ after ‘‘to augment the active forces for any

8 operational mission’’.

9 (B) in subsection (b)—

10 (i) by striking out ‘‘(b)’’ and inserting in

11 lieu thereof ‘‘(c) LIMITATIONS.—(1)’’; and

12 (ii) by striking out ‘‘, or to provide’’ and

13 inserting in lieu thereof ‘‘or, except as provided

14 in subsection (b), to provide’’;

15 (C) by redesignating subsection (c) as para16 graph (2); and

17 (D) by inserting after subsection (a) the follow18 ing new subsection (b):

19 ‘‘(b) SUPPORT FOR RESPONSES TO CERTAIN EMER20 GENCIES.—The authority under subsection (a) includes

21 authority to order a unit or member to active duty to pro22 vide assistance in responding to an emergency involving

23 a use or threatened use of a weapon of mass destruction.’’.

24 (2) Subsection (i) of such section is amended to read

25 as follows:

26 ‘‘(i) DEFINITIONS.—For purposes of this section:
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1 ‘‘(1) The term ‘Individual Ready Reserve mobi2 lization category’ means, in the case of any reserve

3 component, the category of the Individual Ready Re4 serve described in section 10144(b) of this title.

5 ‘‘(2) The term ‘weapon of mass destruction’ has

6 the meaning given such term in section 1402 of the

7 Defense Against Weapons of Mass Destruction Act

8 of 1996 (50 U.S.C. 2302(1)).’’.

9 (3) Such section is further amended—

10 (A) in subsection (a), by inserting ‘‘AUTHOR11 ITY.—’’ after ‘‘(a)’’;

12 (B) in subsection (d), by inserting ‘‘EXCLUSION

13 FROM STRENGTH LIMITATIONS.—’’ after ‘‘(d)’’;

14 (C) in subsection (e), by inserting ‘‘POLICIES

15 AND PROCEDURES.—’’ after ‘‘(e)’’;

16 (D) in subsection (f), by inserting ‘‘NOTIFICA17 TION OF CONGRESS.—’’ after ‘‘(f)’’;

18 (E) in subsection (g), by inserting ‘‘TERMI19 NATION OF DUTY.—’’ after ‘‘(g)’’; and

20 (F) in subsection (h), by inserting ‘‘RELATION21 SHIP TO WAR POWERS RESOLUTION.—’’ after

22 ‘‘(h)’’.

23 (b) USE OF ACTIVE GUARD AND RESERVE PERSON24 NEL.—Section 12310 of title 10, United States Code, is

25 amended by adding at the end the following:
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1 ‘‘(c)(1) A Reserve on active duty as described in sub2 section (a), or a Reserve who is a member of the National

3 Guard serving on full-time National Guard duty under

4 section 502(f) of title 32 in connection with functions re5 ferred to in subsection (a), may perform any duties in sup6 port of emergency preparedness programs to prepare for

7 or to respond to any emergency involving the use of a

8 weapon of mass destruction (as defined in section 1402

9 of the Defense Against Weapons of Mass Destruction Act

10 of 1996 (50 U.S.C. 2302(1))).

11 ‘‘(2) The costs of the pay, allowances, clothing, sub12 sistence, gratuities, travel, and related expenses for a Re13 serve performing duties under the authority of paragraph

14 (1) shall be paid from the appropriation that is available

15 to pay such costs for other members of the reserve compo16 nent of that Reserve who are performing duties as de17 scribed in subsection (a).’’.

18 Subtitle C—Other Matters

19 SEC. 521. ANNUAL MANPOWER REQUIREMENTS REPORT.

20 Section 115a(a) of title 10, United States Code, is

21 amended by striking out the first sentence and inserting

22 in lieu thereof the following: ‘‘The Secretary of Defense

23 shall submit an annual manpower requirements report to

24 Congress each year, not later than 45 days after the date
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1 on which the President submits the budget for the next

2 fiscal year to Congress under section 1105(a) of title 31.’’.

3 SEC. 522. FOUR-YEAR EXTENSION OF CERTAIN FORCE RE4 DUCTION TRANSITION PERIOD MANAGEMENT

5 AND BENEFITS AUTHORITIES.

6 (a) ACTIVE FORCE EARLY RETIREMENT.—Section

7 4403(i) of the National Defense Authorization Act for Fis8 cal Year 1993 (10 U.S.C. 1293 note) is amended by strik9 ing out ‘‘October 1, 1999’’ and inserting in lieu thereof

10 ‘‘October 1, 2003’’.

11 (b) SPECIAL SEPARATION BENEFITS PROGRAM.—

12 Section 1174a(h) of title 10, United States Code, is

13 amended by striking out ‘‘September 30, 1999’’ and in14 serting in lieu thereof ‘‘September 30, 2003’’.

15 (c) VOLUNTARY SEPARATION INCENTIVE.—Section

16 1175(d)(3) of such title is amended by striking out ‘‘Sep17 tember 30, 1999’’ and inserting in lieu thereof ‘‘Septem18 ber 30, 2003’’.

19 (d) SELECTIVE EARLY RETIREMENT BOARDS.—Sec20 tion 638a(a) of such title, is amended by striking out

21 ‘‘nine-year period’’ and inserting in lieu thereof ‘‘13-year

22 period’’.

23 (e) RETIRED GRADE.—Section 1370(a)(2)(A) of such

24 title is amended by striking out ‘‘nine-year period’’ and

25 inserting in lieu thereof ‘‘13-year period’’.
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1 (f) MINIMUM COMMISSIONED SERVICE FOR VOL2 UNTARY RETIREMENT.—Sections 3911(b), 6323(a)(2),

3 and 8911(b) of such title are amended by striking out

4 ‘‘nine-year period’’ and inserting in lieu thereof ‘‘13-year

5 period’’.

6 (g) TRAVEL, TRANSPORTATION, AND STORAGE BEN7 EFITS.—(1) Subsections (c)(1)(C) and (f)(2)(B)(v) of sec8 tion 404 of title 37, United States Code, and subsections

9 (a)(2)(B)(v) and (g)(1)(C) of section 406 of such title are

10 amended by striking out ‘‘nine-year period’’ and inserting

11 in lieu thereof ‘‘13-year period’’.

12 (2) Section 503(c)(1) of the National Defense Au13 thorization Act for Fiscal Year 1991 (37 U.S.C. 406 note)

14 is amended by striking out ‘‘nine-year period’’ and insert15 ing in lieu thereof ‘‘13-year period’’.

16 (h) EDUCATIONAL LEAVE FOR PUBLIC AND COMMU17 NITY SERVICE.—Section 4463(f) of the National Defense

18 Authorization Act for Fiscal Year 1993 (10 U.S.C. 1143a

19 note) is amended by striking out ‘‘September 30, 1999’’

20 and inserting in lieu thereof ‘‘September 30, 2003’’.

21 (i) HEALTH BENEFITS.—Section 1145 of title 10,

22 United States Code, is amended—

23 (1) in subsections (a)(1) and (c)(1), by striking

24 out ‘‘nine-year period’’ and inserting in lieu thereof

25 ‘‘13-year period’’; and
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1 (2) in subsection (e), by striking out ‘‘five-year

2 period’’ and inserting in lieu thereof ‘‘nine-year pe3 riod’’.

4 (j) COMMISSARY AND EXCHANGE BENEFITS.—Sec5 tion 1146 of such title is amended—

6 (1) by striking out ‘‘nine-year period’’ in the

7 first sentence and inserting in lieu thereof ‘‘13-year

8 period’’; and

9 (2) by striking out ‘‘five-year period’’ in the

10 second sentence and inserting in lieu thereof ‘‘nine11 year period’’.

12 (k) USE OF MILITARY HOUSING.—Section 1147(a)

13 of such title 10 is amended—

14 (1) in paragraph (1), by striking out ‘‘nine-year

15 period’’ and inserting in lieu thereof ‘‘13-year pe16 riod’’; and

17 (2) in paragraph (2), by striking out ‘‘five-year

18 period’’ and inserting in lieu thereof ‘‘nine-year pe19 riod’’.

20 (l) CONTINUED ENROLLMENT OF DEPENDENTS IN

21 DEFENSE DEPENDENTS’ EDUCATION SYSTEM.—Section

22 1407(c)(1) of the Defense Dependents’ Education Act of

23 1978 (20 U.S.C. 926(c)(1)) is amended by striking out

24 ‘‘nine-year period’’ and inserting in lieu thereof ‘‘13-year

25 period’’.
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1 (m) GUARD AND RESERVE TRANSITION INITIA2 TIVES.—Title XLIV of the National Defense Authoriza3 tion Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is

4 amended—

5 (1) in section 4411, by striking out ‘‘September

6 30, 1999’’ and inserting in lieu thereof ‘‘September

7 30, 2003’’; and

8 (2) in section 4416(b)(1), by striking out ‘‘Oc9 tober 1, 1999’’ and inserting in lieu thereof ‘‘Octo10 ber 1, 2003’’.

11 (n) RETIRED PAY FOR NONREGULAR SERVICE-AGE

12 AND SERVICE REQUIREMENTS.—(1) Section 12731(f) of

13 title 10, United States Code, is amended by striking out

14 ‘‘September 30, 1999’’ and inserting in lieu thereof ‘‘Sep15 tember 30, 2003’’.

16 (2) Subsections (a)(1)(B) and (b) of section 12731a

17 of such title are amended by striking out ‘‘October 1,

18 1999’’ and inserting in lieu thereof ‘‘October 1, 2003’’.

19 (o) REDUCTION OF TIME-IN-GRADE REQUIREMENT

20 FOR RETENTION OF GRADE UPON VOLUNTARY RETIRE21 MENT.—Section 1370(d) of such title is amended by add22 ing at the end the following new paragraph:

23 ‘‘(5) The Secretary of Defense may authorize the

24 Secretary of a military department to reduce the three25 year period required by paragraph (3)(A) to a period not
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1 less than two years in the case of retirements effective

2 during the period beginning on the date of the enactment

3 of the National Defense Authorization Act for Fiscal Year

4 1999 and ending September 30, 2003. The number of the

5 reserved commissioned officers of an armed force in the

6 same grade for whom a reduction is made during any fis7 cal year in the period of service-in-grade otherwise re8 quired under this paragraph may not exceed the number

9 equal to two percent of the strength authorized for that

10 fiscal year for reserve commissioned officers of that armed

11 force in an active status in that grade.’’.

12 (p) AFFILIATION WITH GUARD AND RESERVE

13 UNITS; WAIVER OF CERTAIN LIMITATIONS.—Section

14 1150(a) of such title is amended by striking out ‘‘nine15 year period’’ and inserting in lieu thereof ‘‘13-year pe16 riod’’.

17 (q) TIME FOR USE OF MONTGOMERY G.I. BILL EN18 TITLEMENT.—Section 16133(b)(1)(B) of such title is

19 amended by striking out ‘‘September 30, 1999’’ and in20 serting in lieu thereof ‘‘September 30, 2003’’.
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1 SEC. 523. CONTINUATION OF ELIGIBILITY FOR VOL2 UNTARY SEPARATION INCENTIVE AFTER IN3 VOLUNTARY LOSS OF MEMBERSHIP IN

4 READY OR STANDBY RESERVE.

5 (a) PERIOD OF ELIGIBILITY.—Subsection (a) of sec6 tion 1175 of title 10, United States Code, is amended—

7 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’;

8 (2) by striking out ‘‘, for the period of time the

9 member is serving in a reserve component’’; and

10 (3) by adding at the end the following:

11 ‘‘(2)(A) Except as provided in subparagraph (B), a

12 financial incentive provided a member under this section

13 shall be paid for the period equal to twice the number of

14 years of service of the member, computed as provided in

15 subsection (e)(5).

16 ‘‘(B) If, before the expiration of the period otherwise

17 applicable under subparagraph (A) to a member receiving

18 a financial incentive under this section, the member is sep19 arated from a reserve component or is transferred to the

20 Retired Reserve, the period for payment of a financial in21 centive to the member under this section shall terminate

22 on the date of the separation or transfer unless—

23 ‘‘(i) the separation or transfer is required by

24 reason of the age or number of years of service of

25 the member;
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1 ‘‘(ii) the separation or transfer is required by

2 reason of the failure of selection for promotion or

3 the medical disqualification of the member, except in

4 a case in which the Secretary of Defense or the Sec5 retary of Transportation determines that the basis

6 for the separation or transfer is a result of a delib7 erate action taken by the member with the intent to

8 avoid retention in the Ready Reserve or Standby Re9 serve; or

10 ‘‘(iii) in the case of a separation, the member

11 is separated from the reserve component for appoint12 ment or enlistment in or transfer to another reserve

13 component of an armed force for service in the

14 Ready Reserve or Standby Reserve of that armed

15 force.’’.

16 (b) REPEAL OF SUPERSEDED PROVISION.—Sub17 section (e)(1) of such section is amended by striking out

18 the second sentence.

19 SEC. 524. REPEAL OF LIMITATIONS ON AUTHORITY TO SET

20 RATES AND WAIVE REQUIREMENT FOR REIM21 BURSEMENT OF EXPENSES INCURRED FOR

22 INSTRUCTION AT SERVICE ACADEMIES OF

23 PERSONS FROM FOREIGN COUNTRIES.

24 (a) UNITED STATES MILITARY ACADEMY.—Section

25 4344(b) of title 10, United States Code, is amended—
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1 (1) in the second sentence of paragraph (2), by

2 striking out ‘‘, except that the reimbursement rates

3 may not be less than the cost to the United States

4 of providing such instruction, including pay, allow5 ances, and emoluments, to a cadet appointed from

6 the United States’’; and

7 (2) by striking out paragraph (3).

8 (b) NAVAL ACADEMY.—Section 6957(b) of such title

9 is amended—

10 (1) in the second sentence of paragraph (2), by

11 striking out ‘‘, except that the reimbursement rates

12 may not be less than the cost to the United States

13 of providing such instruction, including pay, allow14 ances, and emoluments, to a midshipman appointed

15 from the United States’’; and

16 (2) by striking out paragraph (3).

17 (c) AIR FORCE ACADEMY.—Section 9344(b) of such

18 title is amended—

19 (1) in the second sentence of paragraph (2), by

20 striking out ‘‘, except that the reimbursement rates

21 may not be less than the cost to the United States

22 of providing such instruction, including pay, allow23 ances, and emoluments, to a cadet appointed from

24 the United States’’; and

25 (2) by striking out paragraph (3).
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1 SEC. 525. REPEAL OF RESTRICTION ON CIVILIAN EMPLOY2 MENT OF ENLISTED MEMBERS.

3 (a) REPEAL.—Section 974 of title 10, United States

4 Code, is repealed.

5 (b) CLERICAL AMENDMENT.—The table of sections

6 at the beginning of chapter 49 of such title is amended

7 by striking out the item relating to section 974.

8 SEC. 526. EXTENSION OF REPORTING DATES FOR COMMIS9 SION ON MILITARY TRAINING AND GENDER10 RELATED ISSUES.

11 (a) INTERIM REPORT.—Subsection (e)(1) of section

12 562 of the National Defense Authorization Act for Fiscal

13 Year 1998 (Public Law 105–85; 111 Stat. 1754; 10

14 U.S.C. 113 note) is amended by striking out ‘‘April 15,

15 1998’’ and inserting in lieu thereof ‘‘October 15, 1998’’.

16 (b) FINAL REPORT.—Subsection (e)(2) of such sec17 tion is amended by striking out ‘‘September 16, 1998’’

18 and inserting in lieu thereof ‘‘March 15, 1999’’.

19 SEC. 527. MORATORIUM ON CHANGES OF GENDER-RELAT20 ED POLICIES AND PRACTICES PENDING COM21 PLETION OF THE WORK OF THE COMMISSION

22 ON MILITARY TRAINING AND GENDER-RELAT23 ED ISSUES.

24 Notwithstanding any other provision of law, no offi25 cial of the Department of Defense may implement any

26 change of policy or official practice in the department re-
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1 garding separation or integration of members of the

2 Armed Forces on the basis of gender that is within the

3 responsibility of the Commission on Military Training and

4 Gender-Related Issues to review under subtitle F of title

5 V of the National Defense Authorization Act for Fiscal

6 Year 1998 (Public Law 105–85; 111 Stat. 1750), before

7 the date on which the commission terminates under sec8 tion 564 of such Act.

9 SEC. 528. TRANSITIONAL COMPENSATION FOR ABUSED

10 DEPENDENT CHILDREN NOT RESIDING WITH

11 THE SPOUSE OR FORMER SPOUSE OF A MEM12 BER CONVICTED OF DEPENDENT ABUSE.

13 (a) ENTITLEMENT NOT CONDITIONED ON FORFEIT14 URE OF SPOUSAL COMPENSATION.—Subsection (d) of sec15 tion 1059 of title 10, United States Code, is amended—

16 (1) by striking out paragraph (1) and inserting

17 in lieu thereof the following:

18 ‘‘(1) If the individual was married at the time

19 of the commission of the dependent-abuse offense re20 sulting in the separation, the spouse or former

21 spouse to whom the individual was married at that

22 time shall be paid such compensation, including an

23 amount (determined under subsection (f)(2)) for

24 each, if any, dependent child of the individual de-
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1 scribed in subsection (b) who resides in the same

2 household as that spouse or former spouse.’’;

3 (2) in paragraph (2)—

4 (A) by striking out ‘‘(but for subsection

5 (g)) would be eligible’’ and inserting in lieu

6 thereof ‘‘is or, but for subsection (g), would be

7 eligible’’; and

8 (B) by striking out ‘‘such compensation’’

9 and inserting in lieu thereof ‘‘compensation

10 under this section’’; and

11 (3) in paragraph (4), by striking out ‘‘For pur12 poses of paragraphs (2) and (3)’’ and inserting in

13 lieu thereof ‘‘For purposes of this subsection’’.

14 (b) AMOUNT OF PAYMENT.—Subsection (f)(2) of

15 such section is amended by striking out ‘‘has custody of

16 a dependent child or children of the member’’ and insert17 ing in lieu thereof ‘‘has custody of a dependent child of

18 the member who resides in the same household as that

19 spouse or former spouse’’.

20 (c) PROSPECTIVE APPLICABILITY.—No benefits shall

21 accrue by reason of the amendments made by this section

22 for any month that begins before the date of the enact23 ment of this Act.
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1 SEC. 529. PILOT PROGRAM FOR TREATING GED RECIPI2 ENTS AS HIGH SCHOOL GRADUATES FOR DE3 TERMINATIONS OF ELIGIBILITY FOR ENLIST4 ING IN THE ARMED FORCES.

5 (a) PROGRAM REQUIRED.—The Secretary of Defense

6 shall establish a pilot program to assess whether the

7 Armed Forces could better meet recruiting requirements

8 by treating GED recipients as having graduated from high

9 school with a high school diploma for the purpose of deter10 mining the eligibility of those persons to enlist in the

11 Armed Forces. The Secretary of each military department

12 shall administer the pilot program for the armed force or

13 armed forces under the jurisdiction of the Secretary.

14 (b) ELIGIBLE GED RECIPIENTS.—(1) Under the

15 pilot program, a person shall be treated as having grad16 uated from high school with a high school diploma for the

17 purpose described in subsection (a) if the person—

18 (A) has completed a general education develop19 ment program while participating in the National

20 Guard Challenge Program; and

21 (B) is a GED recipient.

22 (2) For the purposes of this section, a person is a

23 GED recipient if the person, after completing a general

24 education development program, has obtained certification

25 of high school equivalency by meeting State requirements

26 and passing a State approved exam that is administered
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1 for the purpose of providing an appraisal of the person’s

2 achievement or performance in the broad subject matter

3 areas usually required for high school graduates.

4 (c) ANNUAL LIMIT ON NUMBER.—Not more than

5 1,250 persons enlisted by an armed force in any fiscal year

6 may be treated under the pilot program as having grad7 uated from high school with a high school diploma.

8 (d) PERIOD FOR PILOT PROGRAM.—The pilot pro9 gram shall be in effect for five fiscal years beginning on

10 October 1, 1998.

11 (e) REPORT.—(1) Not later than February 1, 2004,

12 the Secretary of Defense shall submit a report on the pilot

13 program to the Committee on Armed Services of the Sen14 ate and the Committee on National Security of the House

15 of Representatives.

16 (2)(A) The report shall include the assessment of the

17 Secretary of Defense, and any assessment of any of the

18 Secretaries of the military departments, regarding the

19 value of, and any necessity for, authority to treat GED

20 recipients as having graduated from high school with a

21 high school diploma for the purpose of determining the

22 eligibility of those persons to enlist in the Armed Forces.

23 (B) The Secretary shall also set forth in the report,

24 by armed force for each fiscal year of the pilot program,

25 a comparison of the performance of the persons who en-
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1 listed in that armed force during the fiscal year as GED

2 recipients treated under the pilot program as having grad3 uated from high school with a high school diploma with

4 the performance of the persons who enlisted in that armed

5 force during the same fiscal year after having graduated

6 from high school with a high school diploma, with respect

7 to the following:

8 (i) Attrition.

9 (ii) Discipline.

10 (iii) Adaptability to military life.

11 (iv) Aptitude for mastering the skills necessary

12 for technical specialties.

13 (v) Reenlistment rates.

14 (f) REFERENCE TO NATIONAL GUARD CHALLENGE

15 PROGRAM.—The National Guard Challenge Program re16 ferred to in this section is a program conducted under sec17 tion 509 of title 32, United States Code.

18 (g) STATE DEFINED.—In this section, the term

19 ‘‘State’’ has the meaning given that term in section

20 509(l)(1) of title 32, United States Code.

21 SEC. 530. WAIVER OF TIME LIMITATIONS FOR AWARD OF

22 DISTINGUISHED FLYING CROSS IN CERTAIN

23 CASES.

24 (a) WAIVER.—Any limitation established by law or

25 policy for the time within which a recommendation for the
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1 award of a military decoration or award must be submit2 ted shall not apply to awards of the Distinguished Flying

3 Cross for service described in subsection (b).

4 (b) APPLICABILITY OF WAIVER.—Subsection (a) ap5 plies to award of the Distinguished Flying Cross for serv6 ice during World War II or Korea (including multiple

7 awards to the same individual) in the case of each individ8 ual (not covered by section 573(d) of the National Defense

9 Authorization Act for Fiscal Year 1998 (Public Law 105–

10 85; 111 Stat. 1757)) concerning whom the Secretary of

11 the Navy (or an officer of the Navy acting on behalf of

12 the Secretary) submitted to the Committee on National

13 Security of the House of Representatives and the Commit14 tee on Armed Services of the Senate, before the date of

15 the enactment of this Act, a notice as provided in section

16 1130(b) of title 10, United States Code, that the award

17 of the Distinguished Flying Cross to that individual is

18 warranted and that a waiver of time restrictions pre19 scribed by law for recommendation for such award is rec20 ommended.
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1 TITLE VI—COMPENSATION AND

2 OTHER PERSONNEL BENEFITS

3 Subtitle A—Pay and Allowances

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

5 (a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any

6 adjustment required by section 1009 of title 37, United

7 States Code, in the rates of monthly basic pay authorized

8 members of the uniformed services by section 203(a) of

9 such title to become effective during fiscal year 1999 shall

10 not be made.

11 (b) INCREASE IN BASIC PAY.—Effective on January

12 1, 1999, the rates of basic pay of members of the uni13 formed services are increased by 3.1 percent.

14 SEC. 602. RATE OF PAY FOR CADETS AND MIDSHIPMEN AT

15 THE SERVICE ACADEMIES.

16 (a) INCREASED RATE.—Section 203(c) of title 37,

17 United States Code, is amended by striking out ‘‘$558.04’’

18 and inserting in lieu thereof ‘‘$600.00’’.

19 (b) EFFECTIVE DATE.—The amendment made by

20 subsection (a) shall take effect on January 1, 1999.

21 SEC. 603. PAYMENTS FOR MOVEMENTS OF HOUSEHOLD

22 GOODS ARRANGED BY MEMBERS.

23 (a) MONETARY ALLOWANCE AUTHORIZED.—Sub24 section (b)(1) of section 406 of title 37, United States

25 Code, is amended—
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1 (1) in subparagraph (A)—

2 (A) by striking out ‘‘, or reimbursement

3 therefor,’’; and

4 (B) by inserting after the second sentence

5 the following: ‘‘Alternatively, a member may be

6 paid reimbursement or a monetary allowance

7 under subparagraph (F).’’; and

8 (2) by adding at the end the following:

9 ‘‘(F) A member entitled to transportation of baggage

10 and household effects under subparagraph (A) may, as an

11 alternative to the provision of transportation, be paid re12 imbursement or, at the member’s request, a monetary al13 lowance in advance for the cost of transportation of the

14 baggage and household effects. The monetary allowance

15 may be paid only if the amount of the allowance does not

16 exceed the cost that would be incurred by the Government

17 under subparagraph (A) for the transportation of the bag18 gage and household effects. Appropriations available to

19 the Department of Defense, the Department of Transpor20 tation, and the Department of Health and Human Serv21 ices for providing transportation of baggage or household

22 effects of members of the uniformed services shall be avail23 able to pay a reimbursement or monetary allowance under

24 this subparagraph. The Secretary concerned may pre25 scribe the manner in which the risk of liability for damage,
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1 destruction, or loss of baggage or household effects ar2 ranged, packed, crated, or loaded by a member is allocated

3 among the member, the United States, and any contractor

4 when a reimbursement or monetary allowance is elected

5 under this subparagraph.’’.

6 (b) REPEAL OF SUPERSEDED PROVISION.—Such sec7 tion is further amended by striking out subsection (j).

8 SEC. 604. LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY

9 CADETS AND MIDSHIPMEN.

10 (a) AUTHORITY.—Section 702 of title 10, United

11 States Code, is amended—

12 (1) by designating the second sentence of sub13 section (b) as subsection (d);

14 (2) by redesignating subsection (b) as sub15 section (c); and

16 (3) by inserting after subsection (a) the follow17 ing new subsection (b):

18 ‘‘(b) LEAVE WITHOUT PAY.—(1) Under regulations

19 prescribed under subsection (d), the Superintendent of the

20 United States Military Academy, the United States Naval

21 Academy, the United States Air Force Academy, or the

22 United States Coast Guard Academy may order a cadet

23 or midshipman of the Academy to be placed on leave invol24 untarily for any period during which the cadet or mid25 shipman is suspended from duty at the Academy—
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1 ‘‘(A) pending separation from the Academy;

2 ‘‘(B) pending return to the Academy to repeat

3 an academic semester or year; or

4 ‘‘(C) for other good cause.

5 ‘‘(2) A cadet or midshipman placed on involuntary

6 leave under paragraph (1) is not entitled to any pay under

7 section 230(c) of title 37 for the period of the leave.

8 ‘‘(3) A return of a cadet or midshipman to a pay sta9 tus at the Academy from an involuntary leave status under

10 paragraph (1) does not restore any entitlement of the

11 cadet or midshipman to pay for the period of the involun12 tary leave.’’.

13 (b) SUBSECTION HEADINGS.—Such section, as

14 amended by subsection (a), is further amended—

15 (1) in subsection (a), by inserting ‘‘GRADUA16 TION LEAVE.—’’ after ‘‘(a)’’;

17 (2) in subsection (c), by inserting ‘‘INAPPLICA18 BLE LEAVE PROVISIONS.—’’ after ‘‘(c)’’; and

19 (3) in subsection (d), by inserting ‘‘REGULA20 TIONS.—’’ after ‘‘(d)’’.
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1 Subtitle B—Bonuses and Special

2 and Incentive Pays

3 SEC. 611. THREE-MONTH EXTENSION OF CERTAIN BO4 NUSES AND SPECIAL PAY AUTHORITIES FOR

5 RESERVE FORCES.

6 (a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN

7 CRITICALLY SHORT WARTIME SPECIALTIES.—Section

8 302g(f) of title 37, United States Code, is amended by

9 striking out ‘‘September 30, 1999’’ and inserting in lieu

10 thereof ‘‘December 31, 1999’’.

11 (b) SELECTED RESERVE REENLISTMENT BONUS.—

12 Section 308b(f) of title 37, United States Code, is amend13 ed by striking out ‘‘September 30, 1999’’ and inserting

14 in lieu thereof ‘‘December 31, 1999’’.

15 (c) SELECTED RESERVE ENLISTMENT BONUS.—Sec16 tion 308c(e) of title 37, United States Code, is amended

17 by striking out ‘‘September 30, 1999’’ and inserting in

18 lieu thereof ‘‘December 31, 1999’’.

19 (d) SPECIAL PAY FOR ENLISTED MEMBERS AS20 SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section

21 308d(c) of title 37, United States Code, is amended by

22 striking out ‘‘September 30, 1999’’ and inserting in lieu

23 thereof ‘‘December 31, 1999’’.

24 (e) SELECTED RESERVE AFFILIATION BONUS.—Sec25 tion 308e(e) of title 37, United States Code, is amended
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1 by striking out ‘‘September 30, 1999’’ and inserting in

2 lieu thereof ‘‘December 31, 1999’’.

3 (f) READY RESERVE ENLISTMENT AND REENLIST4 MENT BONUS.—Section 308h(g) of title 37, United States

5 Code, is amended by striking out ‘‘September 30, 1999’’

6 and inserting in lieu thereof ‘‘December 31, 1999’’.

7 (g) PRIOR SERVICE ENLISTMENT BONUS.—Section

8 308i(f) of title 37, United States Code, as redesignated

9 by section 622, is amended by striking out ‘‘September

10 30, 1999’’ and inserting in lieu thereof ‘‘December 31,

11 1999’’.

12 (h) REPAYMENT OF EDUCATION LOANS FOR CER13 TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE14 LECTED RESERVE.—Section 16302(d) of title 10, United

15 States Code, is amended by striking out ‘‘October 1,

16 1999’’ and inserting in lieu thereof ‘‘January 1, 2000’’.

17 SEC. 612. THREE-MONTH EXTENSION OF CERTAIN BO18 NUSES AND SPECIAL PAY AUTHORITIES FOR

19 NURSE OFFICER CANDIDATES, REGISTERED

20 NURSES, AND NURSE ANESTHETISTS.

21 (a) NURSE OFFICER CANDIDATE ACCESSION PRO22 GRAM.—Section 2130a(a)(1) of title 10, United States

23 Code, is amended by striking out ‘‘September 30, 1999’’

24 and inserting in lieu thereof ‘‘December 31, 1999’’.
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1 (b) ACCESSION BONUS FOR REGISTERED NURSES.—

2 Section 302d(a)(1) of title 37, United States Code, is

3 amended by striking out ‘‘September 30, 1999’’ and in4 serting in lieu thereof ‘‘December 31, 1999’’.

5 (c) INCENTIVE SPECIAL PAY FOR NURSE ANES6 THETISTS.—Section 302e(a)(1) of title 37, United States

7 Code, is amended by striking out ‘‘September 30, 1999’’

8 and inserting in lieu thereof ‘‘December 31, 1999’’.

9 SEC. 613. THREE-MONTH EXTENSION OF AUTHORITIES RE10 LATING TO PAYMENT OF OTHER BONUSES

11 AND SPECIAL PAYS.

12 (a) AVIATION OFFICER RETENTION BONUS.—Sec13 tion 301b(a) of title 37, United States Code, is amended

14 by striking out ‘‘September 30, 1999,’’ and inserting in

15 lieu thereof ‘‘December 31, 1999,’’.

16 (b) REENLISTMENT BONUS FOR ACTIVE MEM17 BERS.—Section 308(g) of title 37, United States Code, is

18 amended by striking out ‘‘September 30, 1999’’ and in19 serting in lieu thereof ‘‘December 31, 1999’’.

20 (c) ENLISTMENT BONUSES FOR MEMBERS WITH

21 CRITICAL SKILLS.—Sections 308a(c) and 308f(c) of title

22 37, United States Code, are each amended by striking out

23 ‘‘September 30, 1999’’ and inserting in lieu thereof ‘‘De24 cember 31, 1999’’.
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1 (d) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI2 CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section

3 312(e) of title 37, United States Code, is amended by

4 striking out ‘‘September 30, 1999’’ and inserting in lieu

5 thereof ‘‘December 31, 1999’’.

6 (e) NUCLEAR CAREER ACCESSION BONUS.—Section

7 312b(c) of title 37, United States Code, is amended by

8 striking out ‘‘September 30, 1999’’ and inserting in lieu

9 thereof ‘‘December 31, 1999’’.

10 (f) NUCLEAR CAREER ANNUAL INCENTIVE

11 BONUS.—Section 312c(d) of title 37, United States Code,

12 is amended by striking out ‘‘October 1, 1999’’ and insert13 ing in lieu thereof ‘‘October 1, 1998, and the 15-month

14 period beginning on that date and ending on December

15 31, 1999’’.

16 SEC. 614. ELIGIBILITY OF RESERVES FOR SELECTIVE RE17 ENLISTMENT BONUS WHEN REENLISTING OR

18 EXTENDING TO PERFORM ACTIVE GUARD

19 AND RESERVE DUTY.

20 Section 308(a)(1)(D) of title 37, United States Code,

21 is amended by inserting after ‘‘a regular component of the

22 service concerned’’ the following: ‘‘, or in a reserve compo23 nent of the service concerned in the case of a member re24 enlisting or extending to perform active Guard and Re25 serve duty (as defined in section 101(d)(6) of title 10),’’.
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1 SEC. 615. REPEAL OF TEN-PERCENT LIMITATION ON PAY2 MENTS OF SELECTIVE REENLISTMENT BO3 NUSES IN EXCESS OF $20,000.

4 Section 308(b) of title 37, United States Code, is

5 amended—

6 (1) by striking out paragraph (2); and

7 (2) in paragraph (1), by striking out ‘‘(1)’’.

8 SEC. 616. INCREASE OF MAXIMUM AMOUNT AUTHORIZED

9 FOR ARMY ENLISTMENT BONUS.

10 Section 308f(a) of title 37, United States Code, is

11 amended by striking out ‘‘$4,000’’ and inserting in lieu

12 thereof ‘‘$6,000’’.

13 SEC. 617. EDUCATION LOAN REPAYMENT PROGRAM FOR

14 HEALTH PROFESSIONS OFFICERS SERVING

15 IN SELECTED RESERVE.

16 (a) ELIGIBLE PERSONS.—Subsection (b)(2) of sec17 tion 16302 of title 10, United States Code, is amended

18 by inserting ‘‘, or is enrolled in a program of education

19 leading to professional qualifications,’’ after ‘‘possesses

20 professional qualifications’’.

21 (b) INCREASED BENEFITS.—Subsection (c) of such

22 section is amended—

23 (1) in paragraph (2), by striking out ‘‘$3,000’’

24 and inserting in lieu thereof ‘‘$20,000’’; and

25 (2) in paragraph (3), by striking out ‘‘$20,000’’

26 and inserting in lieu thereof ‘‘$50,000’’.
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1 SEC. 618. INCREASE IN AMOUNT OF BASIC EDUCATIONAL

2 ASSISTANCE UNDER ALL-VOLUNTEER FORCE

3 PROGRAM FOR PERSONNEL WITH CRITI4 CALLY SHORT SKILLS OR SPECIALTIES.

5 Section 3015(d) of title 38, United States Code, is

6 amended by striking out ‘‘$700’’ and inserting in lieu

7 thereof ‘‘$950’’.

8 SEC. 619. RELATIONSHIP OF ENTITLEMENTS TO ENLIST9 MENT BONUSES AND BENEFITS UNDER THE

10 ALL-VOLUNTEER FORCE EDUCATIONAL AS11 SISTANCE PROGRAM.

12 (a) ENTITLEMENTS NOT EXCLUSIVE.—(1) Sub13 chapter II of chapter 30 of title 38, United States Code,

14 is amended by adding at the end the following:

15 ‘‘§ 3019A. Relationship to entitlement to certain en16 listment bonuses

17 ‘‘The entitlement of an individual to benefits under

18 this chapter is not affected by receipt by that individual

19 of an enlistment bonus under section 308a or 308f of title

20 37.’’.

21 (2) The table of sections at the beginning of such

22 chapter is amended by inserting after the item relating

23 to section 3019 the following:

‘‘3019A. Relationship to entitlement to certain enlistment bonuses.’’.
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1 (b) REPEAL OF RELATED LIMITATION.—Section

2 8013(a) of Public Law 105–56 (111 Stat. 1222) is

3 amended—

4 (1) by striking out ‘‘of this Act—’’ and all that

5 follows through ‘‘nor shall any amounts’’ and insert6 ing in lieu thereof ‘‘of this Act enlists in the armed

7 services for a period of active duty of less that three

8 years, nor shall any amounts’’; and

9 (2) in the first proviso, by striking out ‘‘in the

10 case of a member covered by clause (1),’’.

11 Subtitle C—Travel and

12 Transportation Allowances

13 SEC. 621. TRAVEL AND TRANSPORTATION FOR REST AND

14 RECUPERATION IN CONNECTION WITH CON15 TINGENCY OPERATIONS AND OTHER DUTY.

16 Section 411c of title 37, United States Code, is

17 amended—

18 (1) in subsection (a)—

19 (A) by redesignating paragraphs (1) and

20 (2) as subparagraphs (A) and (B); and

21 (B) by inserting ‘‘IN GENERAL.—(1)’’

22 after ‘‘(a)’’;

23 (2) in subsection (b), by striking out ‘‘(b) The

24 transportation authorized by this section’’ and in-
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1 serting in lieu thereof ‘‘(2) The transportation au2 thorized by paragraph (1)’’; and

3 (3) by adding at the end the following:

4 ‘‘(b) CONTINGENCY OPERATIONS AND OTHER SPE5 CIAL SITUATIONS.—(1) Under uniform regulations pre6 scribed by the Secretaries concerned, a member of the

7 armed forces serving a tour of duty at a duty station, and

8 under conditions, described in paragraph (2) may be paid

9 for or provided transportation to a location described in

10 subsection (a)(1) as part of a program of rest and recuper11 ation specifically authorized for members of the armed

12 forces serving under those conditions at that duty station

13 by the Secretary concerned in advance of the commence14 ment of the member’s travel.

15 ‘‘(2) Paragraph (1) applies to a member of the armed

16 forces serving at a duty station outside the United States

17 if—

18 ‘‘(A) the member is participating in a contin19 gency operation at or from that duty station; or

20 ‘‘(B) the payment for or provision of transpor21 tation would be in the best interests of members of

22 the armed forces and the United States because of

23 unusual conditions at the duty station, as deter24 mined by the Secretary concerned.
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1 ‘‘(3) Transportation may not be paid for or provided

2 to a member under this subsection for travel that begins—

3 ‘‘(A) more than 24 months after the commence4 ment of the tour of duty for which the transpor5 tation is authorized; or

6 ‘‘(B) after the tour of duty ends.

7 ‘‘(4) The transportation authorized by this subsection

8 is limited to one round-trip during any tour of at least

9 6, but less than 24, consecutive months.

10 ‘‘(5) Transportation paid for or provided to a member

11 under this subsection may not be counted as transpor12 tation for which the member is eligible under subsection

13 (a).’’.

14 SEC. 622. PAYMENT FOR TEMPORARY STORAGE OF BAG15 GAGE OF DEPENDENT STUDENT NOT TAKEN

16 ON ANNUAL TRIP TO OVERSEAS DUTY STA17 TION OF SPONSOR.

18 Section 430(b) of title 37, United States Code, is

19 amended by striking out the second sentence and inserting

20 in lieu thereof the following: ‘‘The allowance authorized

21 by this section may be prescribed by the Secretaries con22 cerned as transportation in kind or reimbursement there23 for, including an amount for the temporary storage of any

24 baggage not taken with the child on the annual trip if de25 termined advantageous to the Government.’’.
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1 SEC. 623. COMMERCIAL TRAVEL OF RESERVES AT FED2 ERAL SUPPLY SCHEDULE RATES FOR AT3 TENDANCE AT INACTIVE DUTY TRAINING AS4 SEMBLIES.

5 (a) AUTHORITY.—Chapter 1217 of title 10, United

6 States Code is amended by adding at the end the follow7 ing:

8 ‘‘§ 12603. Commercial travel at Federal supply sched9 ule rates for attendance at inactive duty

10 training assemblies

11 ‘‘(a) FEDERAL SUPPLY SCHEDULE TRAVEL.—Com12 mercial travel under Federal supply schedules is author13 ized for the travel of a Reserve to the location of inactive

14 duty training to be performed by the Reserve or from that

15 location upon completion of the training.

16 ‘‘(b) REGULATIONS.—The Secretary of Defense shall

17 prescribe in regulations the requirements, conditions, and

18 restrictions for travel under the authority of subsection (a)

19 that the Secretary considers appropriate. The regulations

20 shall include policies and procedures for preventing abuses

21 of the travel authority.

22 ‘‘(c) REIMBURSEMENT NOT AUTHORIZED.—A Re23 serve is not entitled to Government reimbursement for the

24 cost of travel authorized under subsection (a).

25 ‘‘(d) TREATMENT OF TRANSPORTATION AS USE BY

26 MILITARY DEPARTMENTS.—For the purposes of section
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1 201(a) of the Federal Property and Administrative Serv2 ices Act of 1949 (40 U.S.C. 481(a)), travel authorized

3 under subsection (a) shall be treated as transportation for

4 the use of a military department.’’.

5 (b) CLERICAL AMENDMENT.—The table of sections

6 at the beginning of such chapter is amended by adding

7 at the end the following:

‘‘12603. Commercial travel at Federal supply schedule rates for attendance at

inactive duty training assemblies.’’.

8 Subtitle D—Retired Pay, Survivor

9 Benefits, and Related Matters

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

11 PLAN.

12 (a) PAID UP AT 30 YEARS OF SERVICE AND AGE

13 70.—Section 1452 of title 10, United States Code, is

14 amended by adding at the end the following new sub15 section:

16 ‘‘(j) COVERAGE PAID UP AT 30 YEARS AND ATTAIN17 MENT OF AGE 70.—(1) Coverage of a survivor of a mem18 ber under the Plan shall be considered paid up as of the

19 end of the later of—

20 ‘‘(A) the 360th month in which the member’s

21 retired pay has been reduced under this section; or

22 ‘‘(B) the month in which the member attains

23 70 years of age.
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1 ‘‘(2) The retired pay of a member shall not be re2 duced under this section to provide coverage of a survivor

3 under the Plan after the month when the coverage is con4 sidered paid up under paragraph (1).’’.

5 (b) EFFECTIVE DATE.—Section 1452(j) of title 10,

6 United States Code (as added by subsection (a)), shall

7 take effect on October 1, 2003.

8 SEC. 632. COURT-REQUIRED SURVIVOR BENEFIT PLAN

9 COVERAGE EFFECTUATED THROUGH ELEC10 TIONS AND DEEMED ELECTIONS.

11 (a) ELIMINATION OF DISPARITY IN EFFECTIVE

12 DATE PROVISIONS.—Section 1448(b)(3) of title 10,

13 United States Code, is amended—

14 (1) in subparagraph (C)—

15 (A) by striking out the second sentence;

16 and

17 (B) by striking out ‘‘EFFECTIVE DATE,’’ in

18 the heading; and

19 (2) by adding at the end the following:

20 ‘‘(E) EFFECTIVE DATE.—An election

21 under this paragraph—

22 ‘‘(i) in the case of a person required

23 (as described in section 1450(f)(3)(B) of

24 this title) to make the election, is effective

25 as of the first day of the first month which
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1 begins after the date of the court order or

2 filing that requires the election; and

3 ‘‘(ii) in all other cases, is effective as

4 of the first day of the first calendar month

5 following the month in which the election

6 is received by the Secretary concerned.’’.

7 (b) CONFORMITY BY CROSS REFERENCE.—Section

8 1450(f)(3)(D) of such title is amended by striking out

9 ‘‘the first day of the first month which begins after the

10 date of the court order or filing involved’’ and inserting

11 in lieu thereof ‘‘the day referred to in section

12 1448(b)(3)(E)(i) of this title’’.

13 SEC. 633. RECOVERY, CARE, AND DISPOSITION OF RE14 MAINS OF MEDICALLY RETIRED MEMBER

15 WHO DIES DURING HOSPITALIZATION THAT

16 BEGINS WHILE ON ACTIVE DUTY.

17 (a) IN GENERAL.—Section 1481(a)(7) of title 10,

18 United States Code, is amended to read as follows:

19 ‘‘(7) A person who—

20 ‘‘(A) dies as a retired member of an armed

21 force under the Secretary’s jurisdiction during

22 a continuous hospitalization of the member as

23 a patient in a United States hospital that began

24 while the member was on active duty for a pe25 riod of more than 30 days; or
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1 ‘‘(B) is not covered by subparagraph (A)

2 and, while in a retired status by reason of eligi3 bility to retire under chapter 61 of this title,

4 dies during a continuous hospitalization of the

5 person that began while the person was on ac6 tive duty as a Regular of an armed force, or a

7 member of an armed force without component,

8 under the Secretary’s jurisdiction.’’.

9 (b) EFFECTIVE DATE.—The amendment made by

10 subsection (a) takes effect on the date of the enactment

11 of this Act and applies with respect to deaths occurring

12 on or after that date.

13 Subtitle E—Other Matters

14 SEC. 641. DEFINITION OF POSSESSIONS OF THE UNITED

15 STATES FOR PAY AND ALLOWANCES PUR16 POSES.

17 Section 101(2) of title 37, United States Code, is

18 amended by striking out ‘‘the Canal Zone,’’.

19 SEC. 642. FEDERAL EMPLOYEES’ COMPENSATION COV20 ERAGE FOR STUDENTS PARTICIPATING IN

21 CERTAIN OFFICER CANDIDATE PROGRAMS.

22 (a) PERIODS OF COVERAGE.—Subsection (a)(2) of

23 section 8140 of title 5, United States Code, is amended

24 to read as follows:
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1 ‘‘(2) during the period of the member’s attend2 ance at training or a practice cruise under chapter

3 103 of title 10, beginning when the authorized travel

4 to the training or practice cruise begins and ending

5 when authorized travel from the training or practice

6 cruise ends.’’.

7 (b) LINE OF DUTY.—Subsection (b) of such section

8 is amended to read as follows:

9 ‘‘(b) For the purpose of this section, an injury, dis10 ability, death, or illness of a member referred to in sub11 section (a) may be considered as incurred or contracted

12 in line of duty only if the injury, disability, or death is

13 incurred, or the illness is contracted, by the member dur14 ing a period described in that subsection. Subject to review

15 by the Secretary of Labor, the Secretary of the military

16 department concerned (under regulations prescribed by

17 that Secretary), shall determine whether an injury, dis18 ability, or death was incurred, or an illness was con19 tracted, by a member in line of duty.’’.

20 (c) CLARIFICATION OF CASUALTIES COVERED.—

21 Subsection (a) of such section, as amended by subsection

22 (a) of this section, is further amended by inserting ‘‘, or

23 an illness contracted,’’ after ‘‘death incurred’’ in the mat24 ter preceding paragraph (1).
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1 (d) EFFECTIVE DATE AND APPLICABILITY.—The

2 amendments made by subsections (a) and (b) shall take

3 effect on the date of the enactment of this Act and apply

4 with respect to injuries, illnesses, disabilities, and deaths

5 incurred or contracted on or after that date.

6 SEC. 643. AUTHORITY TO PROVIDE FINANCIAL ASSIST7 ANCE FOR EDUCATION OF CERTAIN DEFENSE

8 DEPENDENTS OVERSEAS.

9 Section 1407(b) of the Defense Dependents’ Edu10 cation Act of 1978 (20 U.S.C. 926(b)) is amended—

11 (1) by striking out ‘‘(b) Under such cir12 cumstances as he may by regulation prescribe, the

13 Secretary of Defense’’ and inserting in lieu thereof

14 ‘‘(b) TUITION AND ASSISTANCE WHEN SCHOOLS

15 UNAVAILABLE.—(1) Under such circumstances as

16 the Secretary of Defense may prescribe in regula17 tions, the Secretary’’; and

18 (2) by adding at the end the following:

19 ‘‘(2)(A) The Secretary of Defense, and the Secretary

20 of Transportation with respect to the Coast Guard when

21 it is not operating as a service of the Navy, may provide

22 financial assistance to sponsors of dependents in overseas

23 areas where schools operated by the Secretary of Defense

24 under subsection (a) are not reasonably available in order

25 to assist the sponsors to defray the costs incurred by the
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1 sponsors for the attendance of the dependents at schools

2 in such areas other than schools operated by the Secretary

3 of Defense.

4 ‘‘(B) The Secretary of Defense and the Secretary of

5 Transportation shall each prescribe regulations relating to

6 the availability of financial assistance under subparagraph

7 (A). Such regulations shall, to the maximum extent prac8 ticable, be consistent with Department of State regula9 tions relating to the availability of financial assistance for

10 the education of dependents of Department of State per11 sonnel overseas.’’.

12 TITLE VII—HEALTH CARE

13 SEC. 701. DEPENDENTS’ DENTAL PROGRAM.

14 (a) INFLATION-INDEXED PREMIUM.—(1) Section

15 1076a(b)(2) of title 10, United States Code, is amended—

16 (A) by inserting ‘‘(A)’’ after ‘‘(2)’’; and

17 (B) by adding at the end the following:

18 ‘‘(B) Effective as of January 1 of each year, the

19 amount of the premium required under subparagraph (A)

20 shall be increased by the percent equal to the lesser of—

21 ‘‘(i) the percent by which the rates of basic pay

22 of members of the uniformed services are increased

23 on such date; or

24 ‘‘(ii) the sum of one-half percent and the per25 cent computed under section 5303(a) of title 5 for
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1 the increase in rates of basic pay for statutory pay

2 systems for pay periods beginning on or after such

3 date.’’.

4 (2) The amendment made by subparagraph (B) of

5 paragraph (1) shall take effect on January 1, 1999, and

6 shall apply to months after 1998 as if such subparagraph

7 had been in effect since December 31, 1993.

8 (b) OFFER OF PLAN UNDER TRICARE.—(1) Sec9 tion 1097 of such title is amended by adding at the end

10 the following:

11 ‘‘(f) DEPENDENTS’ DENTAL PLAN.—A basic dental

12 benefits plan established for eligible dependents under sec13 tion 1076a of this title may be offered under the

14 TRICARE program.’’.

15 (2) Subsection (e) of such section is amended by add16 ing at the end the following: ‘‘Charges for a basic dental

17 benefits plan offered under the TRICARE program pursu18 ant to subsection (f) shall be those provided for under sec19 tion 1076a of this title.’’.
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1 SEC. 702. EXTENSION OF AUTHORITY FOR USE OF PER2 SONAL SERVICES CONTRACTS FOR PROVI3 SION OF HEALTH CARE AT MILITARY EN4 TRANCE PROCESSING STATIONS AND ELSE5 WHERE OUTSIDE MEDICAL TREATMENT FA6 CILITIES.

7 Section 1091(a)(2) of title 10, United States Code,

8 is amended in the second sentence by striking out ‘‘the

9 end of the one-year period beginning on the date of the

10 enactment of this paragraph’’ and inserting in lieu thereof

11 ‘‘June 30, 1999’’.

12 SEC. 703. TRICARE PRIME AUTOMATIC ENROLLMENTS

13 AND RETIREE PAYMENT OPTIONS.

14 (a) PROCEDURES.—(1) Chapter 55 of title 10,

15 United States Code, is amended by inserting after section

16 1097 the following new section:

17 ‘‘§ 1097a. TRICARE Prime: automatic enrollments;

18 payment options

19 ‘‘(a) AUTOMATIC ENROLLMENT OF CERTAIN DE20 PENDENTS.—Each dependent of a member of the uni21 formed services in grade E4 or below who is entitled to

22 medical and dental care under section 1076(a)(2)(A) of

23 this title and resides in the catchment area of a facility

24 of a uniformed service offering TRICARE Prime shall be

25 automatically enrolled in TRICARE Prime at the facility.

26 The Secretary concerned shall provide written notice of
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1 the enrollment to the member. The enrollment of a de2 pendent of the member may be terminated by the member

3 or the dependent at any time.

4 ‘‘(b) AUTOMATIC RENEWAL OF ENROLLMENTS OF

5 COVERED BENEFICIARIES.—(1) An enrollment of a cov6 ered beneficiary in TRICARE Prime shall be automati7 cally renewed upon the expiration of the enrollment unless

8 the renewal is declined.

9 ‘‘(2) Not later than 15 days before the expiration

10 date for an enrollment of a covered beneficiary in

11 TRICARE Prime, the Secretary concerned shall—

12 ‘‘(A) transmit a written notification of the

13 pending expiration and renewal of enrollment to the

14 covered beneficiary or, in the case of a dependent of

15 a member of the uniformed services, to the member;

16 and

17 ‘‘(B) afford the beneficiary or member, as the

18 case may be, an opportunity to decline the renewal

19 of enrollment.

20 ‘‘(c) PAYMENT OPTIONS FOR RETIREES.—A member

21 or former member of the uniformed services eligible for

22 medical care and dental care under section 1074(b) of this

23 title may elect to have any fee payable by the member or

24 former member for an enrollment in TRICARE Prime

25 withheld from the member’s retired pay, retainer pay, or
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1 equivalent pay, as the case may be, or to be paid from

2 a financial institution through electronic transfers of

3 funds. The fee shall be paid in accordance with the elec4 tion.

5 ‘‘(d) REGULATIONS.—The administering Secretaries

6 shall prescribe regulations, including procedures, for car7 rying out this section.

8 ‘‘(e) DEFINITIONS.—In this section:

9 ‘‘(1) The term ‘TRICARE Prime’ means the

10 managed care option of the TRICARE program.

11 ‘‘(2) The term ‘catchment area’, with respect to

12 a facility of a uniformed service, means the service

13 area of the facility, as designated under regulations

14 prescribed by the administering Secretaries.’’.

15 (2) The table of sections at the beginning of such

16 chapter is amended by inserting after the item relating

17 to section 1097 the following new item:

1097a. TRICARE Prime: automatic enrollments; payment options.’’.

18 (b) DEADLINE FOR IMPLEMENTATION.—The regula19 tions required under subsection (d) of section 1097a of

20 title 10, United States Code (as added by subsection (a)),

21 shall be prescribed to take effect not later than January

22 1, 1999. The section shall be applied under TRICARE

23 Prime on and after the date on which the regulations take

24 effect.
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1 SEC. 704. LIMITED CONTINUED CHAMPUS COVERAGE FOR

2 PERSONS UNAWARE OF A LOSS OF CHAMPUS

3 COVERAGE RESULTING FROM ELIGIBILITY

4 FOR MEDICARE.

5 (a) CONTINUATION OF ELIGIBILITY.—The eligibility

6 of a person described in subsection (b) for care under

7 CHAMPUS may be continued under regulations pre8 scribed by the administering Secretaries if it is determined

9 under the regulations that the continuation of the eligi10 bility is appropriate in order to ensure that the person

11 has adequate access to health care.

12 (b) ELIGIBLE PERSONS.—Subsection (a) applies to

13 a person who—

14 (1) has been eligible for health care under

15 CHAMPUS;

16 (2) loses eligibility for health care under

17 CHAMPUS solely by reason of paragraph (1) of sec18 tion 1086(d), United States Code;

19 (3) is unaware of the loss of eligibility; and

20 (4) satisfies the conditions set forth in subpara21 graphs (A) and (B) of paragraph (2) of such section

22 1086(d) at the time health care is provided under

23 CHAMPUS pursuant to a continuation of eligibility

24 in accordance with this section.

25 (c) PERIOD OF CONTINUED ELIGIBILITY.—A con26 tinuation of eligibility under this section shall apply with
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1 regard to health care provided on or after October 1,

2 1998, and before July 1, 1999.

3 (d) DEFINITIONS.—In this section:

4 (1) The term ‘‘administering Secretaries’’ has

5 the meaning given such term in paragraph (3) of

6 section 1072 of title 10, United States Code.

7 (2) The term ‘‘CHAMPUS’’ means the Civilian

8 Health and Medical Program of the Uniformed

9 Services, as defined in paragraph (4) of such sec10 tion.

11 SEC. 705. ENHANCED DEPARTMENT OF DEFENSE ORGAN

12 AND TISSUE DONOR PROGRAM.

13 (a) FINDINGS.—Congress makes the following find14 ings:

15 (1) Organ and tissue transplantation is one of

16 the most remarkable medical success stories in the

17 history of medicine.

18 (2) Each year, the number of people waiting for

19 organ or tissue transplantation increases. It is esti20 mated that there are approximately 39,000 patients,

21 ranging in age from babies to those in retirement,

22 awaiting transplants of kidneys, hearts, livers, and

23 other solid organs.

24 (3) The Department of Defense has made sig25 nificant progress in increasing the awareness of the
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1 importance of organ and tissue donations among

2 members of the Armed Forces.

3 (4) The inclusion of organ and tissue donor

4 elections in the Defense Enrollment Eligibility Re5 porting System (DEERS) central database through

6 the Real-time Automated Personnel Identification

7 System (RAPIDS) represents a major step in ensur8 ing that organ and tissue donor elections are a mat9 ter of record and are accessible in a timely manner.

10 (b) RESPONSIBILITIES OF THE SECRETARY OF DE11 FENSE.—The Secretary of Defense shall ensure that the

12 advanced systems developed for recording Armed Forces

13 members’ personal data and information (such as the

14 SMARTCARD, MEDITAG, and Personal Information

15 Carrier) include the capability to record organ and tissue

16 donation elections.

17 (c) RESPONSIBILITIES OF THE SECRETARIES OF THE

18 MILITARY DEPARTMENTS.—The Secretaries of the mili19 tary departments shall ensure that—

20 (1) appropriate information about organ and

21 tissue donation is provided to each recruit and offi22 cer candidate of the Armed Forces during initial

23 training;

24 (2) members of the Armed Forces are given re25 curring, specific opportunities to elect to be organ or
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1 tissue donors during service in the Armed Forces

2 and upon retirement; and

3 (3) members of the Armed Forces electing to be

4 organ or tissue donors are encouraged to advise

5 their next of kin concerning the donation decision

6 and any subsequent change of that decision.

7 (d) RESPONSIBILITIES OF THE SURGEONS GENERAL

8 OF THE MILITARY DEPARTMENT.—The Surgeons General

9 of the Armed Forces shall ensure that—

10 (1) appropriate training is provided to enlisted

11 and officer medical personnel to facilitate the effec12 tive operation of organ and tissue donation activities

13 under garrison conditions and, to the extent pos14 sible, under operational conditions; and

15 (2) medical logistical activities can, to the ex16 tent possible without jeopardizing operational re17 quirements, support an effective organ and tissue

18 donation program.

19 (e) REPORT.—Not later than September 1, 1999, the

20 Secretary of Defense shall submit to the Committee on

21 Armed Services of the Senate and the Committee on Na22 tional Security of the House of Representatives a report

23 on the status of the implementation of this section.
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1 SEC. 706. JOINT DEPARTMENT OF DEFENSE AND DEPART2 MENT OF VETERANS AFFAIRS REVIEWS RE3 LATING TO INTERDEPARTMENTAL COOPERA4 TION IN THE DELIVERY OF MEDICAL CARE.

5 (a) FINDINGS.—Congress makes the following find6 ings:

7 (1) The military health care system of the De8 partment of Defense and the Veterans Health Ad9 ministration of the Department of Veterans Affairs

10 are national institutions that collectively manage

11 more than 1,500 hospitals, clinics, and health care

12 facilities worldwide to provide services to more than

13 11,000,000 beneficiaries.

14 (2) In the post-Cold War era, these institutions

15 are in a profound transition that involves challeng16 ing opportunities.

17 (3) During the period from 1988 to 1998, the

18 number of military medical personnel has declined

19 by 15 percent and the number of military hospitals

20 has been reduced by one-third.

21 (4) During the two years since 1996, the De22 partment of Veterans Affairs has revitalized its

23 structure by decentralizing authority into 22 Veter24 ans Integrated Service Networks.

25 (5) In the face of increasing costs of medical

26 care, increased demands for health care services, and
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1 increasing budgetary constraints, the Department of

2 Defense and the Department of Veterans Affairs

3 have embarked on a variety of dynamic and innova4 tive cooperative programs ranging from shared serv5 ices to joint venture operations of medical facilities.

6 (6) In 1984, there was a combined total of 102

7 Department of Veterans Affairs and Department of

8 Defense facilities with sharing agreements. By 1997,

9 that number had grown to 420. During the six years

10 from fiscal year 1992 through fiscal year 1997,

11 shared services increased from slightly over 3,000

12 services to more than 6,000 services ranging from

13 major medical and surgical services, laundry, blood,

14 and laboratory services to unusual speciality care

15 services.

16 (7) The Department of Defense and the De17 partment of Veterans Affairs are conducting four

18 health care joint ventures in New Mexico, Nevada,

19 Texas, Oklahoma, and are planning to conduct four

20 more such ventures in Alaska, Florida, Hawaii, and

21 California.

22 (b) SENSE OF CONGRESS.—It is the sense of Con23 gress that—

24 (1) the Department of Defense and the Depart25 ment of Veterans Affairs are to be commended for
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1 the cooperation between the two departments in the

2 delivery of medical care, of which the cooperation in3 volved in the establishment and operation of the De4 partment of Defense and the Department of Veter5 ans Affairs Executive Council is a praiseworthy ex6 ample;

7 (2) the two departments are encouraged to con8 tinue to explore new opportunities to enhance the

9 availability and delivery of medical care to bene10 ficiaries by further enhancing the cooperative efforts

11 of the departments; and

12 (3) enhanced cooperation is encouraged for—

13 (A) the general areas of access to quality

14 medical care, identification and elimination of

15 impediments to enhanced cooperation, and joint

16 research and program development; and

17 (B) the specific areas in which there is sig18 nificant potential to achieve progress in co19 operation in a short term, including comput20 erization of patient records systems, participa21 tion of the Department of Veterans Affairs in

22 the TRICARE program, pharmaceutical pro23 grams, and joint physical examinations.

24 (c) JOINT SURVEY OF POPULATIONS SERVED.—(1)

25 The Secretary of Defense and the Secretary of Veterans
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1 Affairs shall jointly conduct a survey of their respective

2 medical care beneficiary populations to identify, by cat3 egory of beneficiary (defined as the Secretaries consider

4 appropriate), the expectations of, requirements for, and

5 behavior patterns of the beneficiaries with respect to medi6 cal care. The two Secretaries shall develop the protocol

7 for the survey jointly, but shall obtain the services of an

8 entity independent of the Department of Defense and the

9 Department of Veterans Affairs for carrying out the sur10 vey.

11 (2) The survey shall include the following:

12 (A) Demographic characteristics, economic

13 characteristics, and geographic location of bene14 ficiary populations with regard to catchment or serv15 ice areas.

16 (B) The types and frequency of care required

17 by veterans, retirees, and dependents within

18 catchment or service areas of Department of De19 fense and Veterans Affairs medical facilities and

20 outside those areas.

21 (C) The numbers of, characteristics of, and

22 types of medical care needed by the veterans, retir23 ees, and dependents who, though eligible for medical

24 care in Department of Defense or Department of

25 Veterans Affairs treatment facilities or other feder-
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1 ally funded medical programs, choose not to seek

2 medical care from those facilities or under those pro3 grams, and the reasons for that choice.

4 (D) The obstacles or disincentives for seeking

5 medical care from such facilities or under such pro6 grams that veterans, retirees, and dependents per7 ceive.

8 (E) Any other matters that the Secretary of

9 Defense and the Secretary of Veterans Affairs con10 sider appropriate for the survey.

11 (3) The Secretary of Defense and the Secretary of

12 Veterans Affairs shall submit a report on the results of

13 the survey to the appropriate committees of Congress. The

14 report shall contain the matters described in paragraph

15 (2) and any proposals for legislation that the Secretaries

16 recommend for enhancing Department of Defense and De17 partment of Veterans Affairs cooperative efforts with re18 spect to the delivery of medical care.

19 (d) REVIEW OF LAW AND POLICIES.—(1) The Sec20 retary of Defense and the Secretary of Veterans Affairs

21 shall jointly conduct a review to identify impediments to

22 cooperation between the Department of Defense and the

23 Department of Veterans Affairs regarding the delivery of

24 medical care. The matters reviewed shall include the fol25 lowing:
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1 (A) All laws, policies, and regulations, and any

2 attitudes of beneficiaries of the health care systems

3 of the two departments, that have the effect of pre4 venting the establishment, or limiting the effective5 ness, of cooperative health care programs of the de6 partments.

7 (B) The requirements and practices involved in

8 the credentialling and licensure of health care pro9 viders.

10 (C) The perceptions of beneficiaries in a variety

11 of categories (defined as the Secretaries consider ap12 propriate) regarding the various Federal health care

13 systems available for their use.

14 (2) The Secretaries shall jointly submit a report on

15 the results of the review to the appropriate committees

16 of Congress. The report shall include any proposals for

17 legislation that the Secretaries recommend for eliminating

18 or reducing impediments to interdepartmental cooperation

19 that are identified during the review.

20 (e) PARTICIPATION IN TRICARE.—(1) The Sec21 retary of Defense shall review the TRICARE program to

22 identify opportunities for increased participation by the

23 Department of Veterans Affairs in that program. The on24 going collaboration between Department of Defense offi25 cials and Department of Veterans Affairs officials regard-
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1 ing increasing the participation shall be included among

2 the matters reviewed.

3 (2) The Secretary of Defense and the Secretary of

4 Veterans Affairs shall jointly submit to the appropriate

5 committees of Congress a semiannual report on the status

6 of the review and on efforts to increase the participation

7 of the Department of Veterans Affairs in the TRICARE

8 program. No report is required under this paragraph after

9 the submission of a semiannual report in which the Sec10 retaries declare that the Department of Veterans Affairs

11 is participating in the TRICARE program to the extent

12 that can reasonably be expected to be attained.

13 (f) PHARMACEUTICAL BENEFITS AND PROGRAMS.—

14 (1) The Federal Pharmaceutical Steering Committee

15 shall—

16 (A) undertake a comprehensive examination of

17 existing pharmaceutical benefits and programs for

18 beneficiaries of Federal medical care programs, in19 cluding matters relating to the purchasing, distribu20 tion, and dispensing of pharmaceuticals and the

21 management of mail order pharmaceuticals pro22 grams; and

23 (B) review the existing methods for contracting

24 for and distributing medical supplies and services.
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1 (2) The committee shall submit a report on the re2 sults of the examination to the appropriate committees of

3 Congress.

4 (g) STANDARDIZATION OF PHYSICAL EXAMINATIONS

5 FOR DISABILITY.—The Secretary of Defense and the Sec6 retary of Veterans Affairs shall submit to the appropriate

7 committees of Congress a report on the status of the ef8 forts of the Department of Defense and the Department

9 of Veterans Affairs to standardize physical examinations

10 administered by the two departments for the purpose of

11 determining or rating disabilities.

12 (h) APPROPRIATE COMMITTEES OF CONGRESS DE13 FINED.—For the purposes of this section, the appropriate

14 committees of Congress are as follows:

15 (1) The Committee on Armed Services and the

16 Committee on Veterans’ Affairs of the Senate.

17 (2) The Committee on National Security and

18 the Committee on Veterans’ Affairs of the House of

19 Representatives.

20 (i) DEADLINES FOR SUBMISSION OF REPORTS.—(1)

21 The report required by subsection (c)(3) shall be submit22 ted not later than January 1, 2000.

23 (2) The report required by subsection (d)(2) shall be

24 submitted not later than March 1, 1999.
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1 (3) The semiannual report required by subsection

2 (e)(2) shall be submitted not later than March 1 and Sep3 tember 1 of each year.

4 (4) The report on the examination required under

5 subsection (f) shall be submitted not later than 60 days

6 after the completion of the examination.

7 (5) The report required by subsection (g) shall be

8 submitted not later than March 1, 1999.

9 SEC. 707. DEMONSTRATION PROJECTS TO PROVIDE

10 HEALTH CARE TO CERTAIN MEDICARE-ELIGI11 BLE BENEFICIARIES OF THE MILITARY

12 HEALTH CARE SYSTEM.

13 (a) IN GENERAL.—(1) The Secretary of Defense

14 shall, after consultation with the other administering Sec15 retaries, carry out three demonstration projects (described

16 in subsections (d), (e), and (f)) in order to assess the fea17 sibility and advisability of providing certain medical care

18 coverage to the medicare-eligible individuals described in

19 subsection (b).

20 (2) The Secretary shall commence the demonstration

21 projects not later than January 1, 2000, and shall termi22 nate the demonstration projects not later than December

23 31, 2003.
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1 (3) The aggregate costs incurred by the Secretary

2 under the demonstration projects in any year may not ex3 ceed $60,000,000.

4 (b) ELIGIBLE INDIVIDUALS.—An individual eligible

5 to participate in a demonstration project under subsection

6 (a) is a member or former member of the uniformed serv7 ices described in section 1074(b) of title 10, United States

8 Code, a dependent of the member described in section

9 1076(a)(2)(B) or 1076(b) of that title, or a dependent of

10 a member of the uniformed services who died while on ac11 tive duty for a period of more than 30 days, who—

12 (1) is 65 years of age or older;

13 (2) is entitled to hospital insurance benefits

14 under part A of title XVIII of the Social Security

15 Act (42 U.S.C. 1395c et seq.);

16 (3) is enrolled in the supplemental medical in17 surance program under part B of such title XVIII

18 (42 U.S.C. 1395j et seq.); and

19 (4) resides in an area of the demonstration

20 project selected by the Secretary under subsection

21 (c).

22 (c) AREAS OF DEMONSTRATION PROJECTS.—(1)

23 Subject to paragraph (3), the Secretary shall carry out

24 each demonstration project under this section in two sepa25 rate areas selected by the Secretary.
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1 (2) Of the two areas selected for each demonstration

2 project—

3 (A) one shall be an area outside the catchment

4 area of a military medical treatment facility in

5 which—

6 (i) no eligible organization has a contract

7 in effect under section 1876 of the Social Secu8 rity Act (42 U.S.C. 1395mm) and no

9 Medicare+Choice organization has a contract

10 in effect under part C of title XVIII of that Act

11 (42 U.S.C. 1395w–21); or

12 (ii) the aggregate number of enrollees with

13 an eligible organization with a contract in effect

14 under section 1876 of that Act or with a

15 Medicare+Choice organization with a contract

16 in effect under part C of title XVIII of that Act

17 is less than 2.5 percent of the total number of

18 individuals in the area who are entitled to hos19 pital insurance benefits under part A of title

20 XVIII of that Act; and

21 (B) one shall be an area outside the catchment

22 area of a military medical treatment facility in

23 which—

24 (i) at least one eligible organization has a

25 contract in effect under section 1876 of that
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1 Act or one Medicare+Choice organization has a

2 contract in effect under part C of title XVIII of

3 that Act; and

4 (ii) the aggregate number of enrollees with

5 an eligible organization with a contract in effect

6 under section 1876 of that Act or with a

7 Medicare+Choice organization with a contract

8 in effect under part C of title XVIII of that Act

9 exceeds 10 percent of the total number of indi10 viduals in the area who are entitled to hospital

11 insurance benefits under part A of title XVIII

12 of that Act.

13 (3) The Secretary may not carry out a demonstration

14 project under this section in any area in which the Sec15 retary is carrying out any other medical care demonstra16 tion project unless the Secretary determines that the con17 duct of such other medical care demonstration project will

18 not interfere with the conduct or evaluation of the dem19 onstration project under this section.

20 (d) FEHBP AS SUPPLEMENT TO MEDICARE DEM21 ONSTRATION.—(1)(A) Under one of the demonstration

22 projects under this section, the Secretary shall permit eli23 gible individuals described in subsection (b) who reside in

24 the areas of the demonstration project selected under sub25 section (c) to enroll in the health benefits plans offered
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1 through the Federal Employees Health Benefits program

2 under chapter 89 of title 5, United States Code.

3 (B) The Secretary shall carry out the demonstration

4 project under this subsection under an agreement with the

5 Office of Personnel Management.

6 (2)(A) An eligible individual described in paragraph

7 (1) shall not be required to satisfy any eligibility criteria

8 specified in chapter 89 of title 5, United States Code, as

9 a condition for enrollment in the health benefits plans of10 fered through the Federal Employee Health Benefits pro11 gram under the demonstration project under this sub12 section.

13 (B) Each eligible individual who enrolls in a health

14 benefits plan under the demonstration project shall be re15 quired to remain enrolled in the supplemental medical in16 surance program under part B of title XVIII of the Social

17 Security Act while participating in the demonstration

18 project.

19 (3)(A) The authority responsible for approving re20 tired or retainer pay or equivalent pay in the case of a

21 member or former member shall manage the participation

22 of the members or former members who enroll in health

23 benefits plans offered through the Federal Employee

24 Health Benefits program pursuant to paragraph (1).
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1 (B) Such authority shall distribute program informa2 tion to eligible individuals, process enrollment applica3 tions, forward all required contributions to the Employees

4 Health Benefits Fund established under section 8909 of

5 title 5, United States Code, in a timely manner, assist in

6 the reconciliation of enrollment records with health plans,

7 and prepare such reports as the Office of Personnel Man8 agement may require in its administration of chapter 89

9 of such title.

10 (4)(A) The Office of Personnel Management shall re11 quire health benefits plans under chapter 89 of title 5,

12 United States Code, that participate in the demonstration

13 project to maintain a separate risk pool for purposes of

14 establishing premium rates for eligible individuals who en15 roll in such plans in accordance with this subsection.

16 (B) The Office shall determine total subscription

17 charges for self only or for family coverage for eligible in18 dividuals who enroll in a health benefits plan under chap19 ter 89 of such title in accordance with this subsection,

20 which shall include premium charges paid to the plan and

21 amounts described in section 8906(c) of title 5, United

22 States Code, for administrative expenses and contingency

23 reserves.

24 (5) The Secretary shall be responsible for the Govern25 ment contribution for an eligible individual who enrolls in
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1 a health benefits plan under chapter 89 of title 5, United

2 States Code, in accordance with this subsection, except

3 that the amount of the contribution may not exceed the

4 amount of the Government contribution which would be

5 payable if such individual were an employee enrolled in

6 the same health benefits plan and level of benefits.

7 (6) The cancellation by a eligible individual of cov8 erage under the Federal Employee Health Benefits pro9 gram shall be irrevocable during the term of the dem10 onstration project under this subsection.

11 (e) TRICARE AS SUPPLEMENT TO MEDICARE DEM12 ONSTRATION.—(1) Under one of the demonstration

13 projects under this section, the Secretary shall permit eli14 gible individuals described in subsection (b) who reside in

15 each area of the demonstration project selected under sub16 section (c) to enroll in the TRICARE program. The dem17 onstration project under this subsection shall be known

18 as the ‘‘TRICARE Senior Supplement’’.

19 (2) Payment for care and services received by eligible

20 individuals who enroll in the TRICARE program under

21 the demonstration project shall be made as follows:

22 (A) First, under title XVIII of the Social Secu23 rity Act, but only the extent that payment for such

24 care and services is provided for under that title.
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1 (B) Second, under the TRICARE program, but

2 only to the extent that payment for such care and

3 services is provided under that program and is not

4 provided for under subparagraph (A).

5 (C) Third, by the eligible individual concerned,

6 but only to the extent that payment for such care

7 and services is not provided for under subpara8 graphs (B) and (C).

9 (3)(A) The Secretary shall require each eligible indi10 vidual who enrolls in the TRICARE program under the

11 demonstration project to pay an enrollment fee. The Sec12 retary may provide for payment of the enrollment fee on

13 a periodic basis.

14 (B) The amount of the enrollment fee of an eligible

15 individual under subparagraph (A) in any year may not

16 exceed an amount equal to 75 percent of the total sub17 scription charges in that year for self-only or family, fee18 for-service coverage under the health benefits plan under

19 the Federal Employees Health Benefits program under

20 chapter 89 of title 5, United States Code, that is most

21 similar in coverage to the TRICARE program.

22 (f) TRICARE MAIL ORDER PHARMACY BENEFIT

23 SUPPLEMENT TO MEDICARE DEMONSTRATION.—(1)

24 Under one of the demonstration projects under this sec25 tion, the Secretary shall permit eligible individuals de-
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1 scribed in subsection (b) who reside in each area of the

2 demonstration project selected under subsection (c) to

3 participate in the mail order pharmacy benefit available

4 under the TRICARE program.

5 (2) The Secretary may collect from eligible individ6 uals who participate in the mail order pharmacy benefit

7 under the demonstration project any premiums,

8 deductibles, copayments, or other charges that the Sec9 retary would otherwise collect from individuals similar to

10 such eligible individuals for participation in the benefit.

11 (g) INDEPENDENT EVALUATION.—(1) The Secretary

12 shall provide for an evaluation of the demonstration

13 projects conducted under this section by an appropriate

14 person or entity that is independent of the Department

15 of Defense.

16 (2) The evaluation shall include the following:

17 (A) An analysis of the costs of each demonstra18 tion project to the United States and to the eligible

19 individuals who enroll or participate in such dem20 onstration project.

21 (B) An assessment of the extent to which each

22 demonstration project satisfied the requirements of

23 such eligible individuals for the health care services

24 available under such demonstration project.
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1 (C) An assessment of the effect, if any, of each

2 demonstration project on military medical readiness.

3 (D) A description of the rate of the enrollment

4 or participation in each demonstration project of the

5 individuals who were eligible to enroll or participate

6 in such demonstration project.

7 (E) An assessment of which demonstration

8 project provides the most suitable model for a pro9 gram to provide adequate health care services to the

10 population of individuals consisting of the eligible in11 dividuals.

12 (F) An evaluation of any other matters that the

13 Secretary considers appropriate.

14 (3) The Comptroller General shall review the evalua15 tion conducted under paragraph (1). In carrying out the

16 review, the Comptroller General shall—

17 (A) assess the validity of the processes used in

18 the evaluation; and

19 (B) assess the validity of any findings under

20 the evaluation.

21 (4)(A) The Secretary shall submit a report on the re22 sults of the evaluation under paragraph (1), together with

23 the evaluation, to the Committee on Armed Services of

24 the Senate and the Committee on National Security of the
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1 House of Representatives not later than December 31,

2 2003.

3 (B) The Comptroller General shall submit a report

4 on the results of the review under paragraph (3) to the

5 committees referred to in subparagraph (A) not later than

6 February 15, 2004.

7 (h) DEFINITIONS.—In this section:

8 (1) The term ‘‘administering Secretaries’’ has

9 the meaning given that term in section 1072(3) of

10 title 10, United States Code.

11 (2) The term ‘‘TRICARE program’’ has the

12 meaning given that term in section 1072(7) of title

13 10, United States Code.

14 TITLE VIII—ACQUISITION POL15 ICY, ACQUISITION MANAGE16 MENT, AND RELATED MAT17 TERS

18 SEC. 801. PARA-ARAMID FIBERS AND YARNS.

19 (a) AUTHORIZED SOURCES.—Chapter 141 of title 10,

20 United States Code is amended by adding at the end the

21 following:

22 ‘‘§ 2410n. Foreign manufactured para-aramid fibers

23 and yarns: procurement

24 ‘‘(a) AUTHORITY.—The Secretary of Defense may

25 procure articles containing para-aramid fibers and yarns
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1 manufactured in a foreign country referred to in sub2 section (b).

3 ‘‘(b) FOREIGN COUNTRIES COVERED.—The author4 ity under subsection (a) applies with respect to a foreign

5 country that—

6 ‘‘(1) is a party to a defense memorandum of

7 understanding entered into under section 2531 of

8 this title; and

9 ‘‘(2) permits United States firms that manufac10 ture para-aramid fibers and yarns to compete with

11 foreign firms for the sale of para-aramid fibers and

12 yarns in that country, as determined by the Sec13 retary of Defense.

14 ‘‘(c) APPLICABILITY TO SUBCONTRACTS.—The au15 thority under subsection (a) applies with respect to sub16 contracts under Department of Defense contracts as well

17 as to such contracts.

18 ‘‘(d) DEFINITIONS.—In this section, the terms

19 ‘United States firm’ and ‘foreign firm’ have the meanings

20 given such terms in section 2532(d) of this title.’’.

21 (b) CLERICAL AMENDMENT.—The table of sections

22 at the beginning of such chapter is amended by adding

23 at the end the following:

‘‘2410n. Foreign manufactured para-aramid fibers and yarns: procurement.’’.
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1 SEC. 802. PROCUREMENT OF TRAVEL SERVICES FOR OFFI2 CIAL AND UNOFFICIAL TRAVEL UNDER ONE

3 CONTRACT.

4 (a) AUTHORITY.—Chapter 147 of title 10, United

5 States Code, is amended by inserting after section 2490a

6 the following new section:

7 ‘‘§ 2490b. Travel services: procurement for official

8 and unofficial travel under one contract

9 ‘‘(a) AUTHORITY.—The head of an agency may enter

10 into a contract for travel-related services that provides for

11 the contractor to furnish services for both official travel

12 and unofficial travel.

13 ‘‘(b) CREDITS, DISCOUNTS, COMMISSIONS, FEES.—

14 (1) A contract entered into under this section may provide

15 for credits, discounts, or commissions or other fees to ac16 crue to the Department of Defense. The accrual and

17 amounts of credits, discounts, or commissions or other

18 fees may be determined on the basis of the volume (meas19 ured in the number or total amount of transactions or oth20 erwise) of the travel-related sales that are made by the

21 contractor under the contract.

22 ‘‘(2) The evaluation factors applicable to offers for

23 a contract under this section may include a factor that

24 relates to the estimated aggregate value of any credits,

25 discounts, commissions, or other fees that would accrue
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1 to the Department of Defense for the travel-related sales

2 made under the contract.

3 ‘‘(3) Commissions or fees received by the Department

4 of Defense as a result of travel-related sales made under

5 a contract entered into under this section shall be distrib6 uted as follows:

7 ‘‘(A) For amounts relating to sales for official

8 travel, credit to appropriations available for official

9 travel for the fiscal year in which the amount is re10 ceived.

11 ‘‘(B) For amounts relating to sales for unoffi12 cial travel, deposit in nonappropriated fund accounts

13 available for morale, welfare, and recreation pro14 grams.

15 ‘‘(c) DEFINITIONS.—In this section:

16 ‘‘(1) The term ‘head of an agency’ has the

17 meaning given that term in section 3202(1) of this

18 title.

19 ‘‘(2) The term ‘official travel’ means travel at

20 the expense of the Federal Government.

21 ‘‘(3) The term ‘unofficial travel’ means personal

22 travel or other travel that is not paid for or reim23 bursed by the Federal Government out of appro24 priated funds.
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1 ‘‘(d) INAPPLICABILITY TO COAST GUARD AND

2 NASA.—This section does not apply to the Coast Guard

3 when it is not operating as a service in the Navy, nor to

4 the National Aeronautics and Space Administration.’’.

5 (b) CLERICAL AMENDMENT.—The table of sections

6 at the beginning of such chapter is amended by adding

7 at the end the following:

‘‘2490b. Travel services: procurement for official and unofficial travel under one

contract.’’.

8 SEC. 803. LIMITATION ON USE OF PRICE PREFERENCE

9 UPON ATTAINMENT OF CONTRACT GOAL FOR

10 SMALL AND DISADVANTAGED BUSINESSES.

11 Section 2323(e)(3) of title 10, United States Code,

12 is amended—

13 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’;

14 (2) by inserting ‘‘, except as provided in (B),’’

15 after ‘‘the head of an agency may’’ in the first sen16 tence; and

17 (3) by adding at the end the following:

18 ‘‘(B) The head of an agency may not exercise the au19 thority under subparagraph (A) to enter into a contract

20 for a price exceeding fair market cost in the fiscal year

21 following a fiscal year in which the Department of Defense

22 attained the 5 percent goal required by subsection (a).’’.
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1 SEC. 804. DISTRIBUTION OF ASSISTANCE UNDER THE PRO2 CUREMENT TECHNICAL ASSISTANCE COOP3 ERATIVE AGREEMENT PROGRAM.

4 (a) CORRECTION OF DESCRIPTION OF GEOGRAPHIC

5 UNIT.—Section 2413(c) of title 10, United States Code,

6 is amended by striking out ‘‘region’’ and inserting in lieu

7 thereof ‘‘district’’.

8 (b) ALLOCATION OF FUNDS.—(1) Section 2415 of

9 title 10, United States Code, is repealed.

10 (2) The table of sections at the beginning of chapter

11 142 of such title is amended by striking the item relating

12 to section 2415.

13 SEC. 805. DEFENSE COMMERCIAL PRICING MANAGEMENT

14 IMPROVEMENT.

15 (a) SHORT TITLE.—This section may be cited as the

16 ‘‘Defense Commercial Pricing Management Improvement

17 Act of 1998’’.

18 (b) COMMERCIAL ITEMS EXEMPT FROM COST OR

19 PRICING DATA CERTIFICATION REQUIREMENTS.—For

20 the purposes of this section, the term ‘‘exempt item’’

21 means a commercial item that is exempt under subsection

22 (b)(1)(B) of section 2306a of title 10, United States Code,

23 from the requirements for submission of certified cost or

24 pricing data under that section.

25 (c) COMMERCIAL PRICING REGULATIONS.—(1) The

26 Secretary of Defense, in consultation with the Adminis-
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1 trator for Federal Procurement Policy, shall prescribe reg2 ulations that clarify the procedures and methods to be

3 used for determining the reasonableness of prices of ex4 empt items.

5 (2) The regulations shall, at a minimum, provide spe6 cific guidance on—

7 (A) the appropriate application and precedence

8 of such price analysis tools as catalog-based pricing,

9 market-based pricing, historical pricing, parametric

10 pricing, and value analysis;

11 (B) the circumstances under which contracting

12 officers should require offerors of exempt items to

13 provide—

14 (i) uncertified cost or pricing data; or

15 (ii) information on prices at which the of16 feror has previously sold the same or similar

17 items;

18 (C) the role and responsibility of Department of

19 Defense support organizations, such as the Defense

20 Contract Audit Agency, in procedures for determin21 ing price reasonableness; and

22 (D) the meaning and appropriate application of

23 the term ‘‘purposes other than governmental pur24 poses’’ in section 4(12) of the Office of Federal Pro25 curement Policy Act (41 U.S.C. 403(12)).
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1 (3) This subsection shall cease to be effective one

2 year after the date on which final regulations prescribed

3 pursuant to paragraph (1) take effect.

4 (d) UNIFIED MANAGEMENT OF PROCUREMENT OF

5 EXEMPT COMMERCIAL ITEMS.—The Secretary of Defense

6 shall develop and implement procedures to ensure that, to

7 the maximum extent that is practicable and consistent

8 with the efficient operation of the Department of Defense,

9 a single item manager or contracting officer is responsible

10 for negotiating and entering into all contracts for the pro11 curement of exempt items from a single contractor.

12 (e) COMMERCIAL PRICE TREND ANALYSIS.—(1) The

13 Secretary of Defense shall develop and implement proce14 dures that, to the maximum extent that is practicable and

15 consistent with the efficient operation of the Department

16 of Defense, provide for the collection and analysis of infor17 mation on price trends for categories of exempt items de18 scribed in paragraph (2).

19 (2) A category of exempt items referred to in para20 graph (1) consists of exempt items—

21 (A) that are in a single Federal Supply Group

22 or Federal Supply Class, are provided by a single

23 contractor, or are otherwise logically grouped for the

24 purpose of analyzing information on price trends;

25 and
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1 (B) for which there is a potential for the price

2 paid to be significantly higher (on a percentage

3 basis) than the prices previously paid in procure4 ments of the same or similar items for the Depart5 ment of Defense, as determined by the head of the

6 procuring Department of Defense agency or the Sec7 retary of the procuring military department on the

8 basis of criteria prescribed by the Secretary of De9 fense.

10 (3) The head of a Department of Defense agency or

11 the Secretary of a military department shall take appro12 priate action to address any unreasonable escalation in

13 prices being paid for items procured by that agency or

14 military department as identified in an analysis conducted

15 pursuant to paragraph (1).

16 (4)(A) Not later than 180 days after the date of the

17 enactment of this Act, the Under Secretary of Defense for

18 Acquisition and Technology shall submit to the congres19 sional defense committees a report describing the proce20 dures prescribed under paragraph (1), including a descrip21 tion of the criteria established for the selection of cat22 egories of exempt items for price trend analysis.

23 (B) Not later than April 1 of each of fiscal years

24 2000, 2001, and 2002, the Under Secretary of Defense

25 for Acquisition and Technology shall submit to the con-
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1 gressional defense committees a report on the analyses of

2 price trends that were conducted for categories of exempt

3 items during the preceding fiscal year under the proce4 dures prescribed pursuant to paragraph (1). The report

5 shall include a description of the actions taken to identify

6 and address any unreasonable price escalation for the cat7 egories of items.

8 (f) SECRETARY OF DEFENSE TO ACT THROUGH

9 UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND

10 TECHNOLOGY.—The Secretary of Defense shall act

11 through the Under Secretary of Defense for Acquisition

12 and Technology to carry out subsections (d) and (e).

13 SEC. 806. DEPARTMENT OF DEFENSE PURCHASES

14 THROUGH OTHER AGENCIES.

15 (a) EXTENSION OF REGULATIONS.—Not later than

16 three months after the date of the enactment of this Act,

17 the Secretary of Defense shall revise the regulations issued

18 pursuant to section 844 of the National Defense Author19 ization Act for Fiscal Year 1994 (Public Law 103–160;

20 107 Stat. 1720; 31 U.S.C. 1535 note) to cover all pur21 chases of goods and services by the Department of De22 fense under contracts entered into or administered by any

23 other agency pursuant to the authority of section 2304a

24 of title 10, United States Code, or section 303H of the
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1 Federal Property and Administrative Services Act (41

2 U.S.C. 253h).

3 (b) TERMINATION.—This section shall cease to be ef4 fective 1 year after the date on which final regulations

5 prescribed pursuant to subsection (a) take effect.

6 SEC. 807. SUPERVISION OF DEFENSE ACQUISITION UNI7 VERSITY STRUCTURE BY UNDER SECRETARY

8 OF DEFENSE FOR ACQUISITION AND TECH9 NOLOGY.

10 Section 1702 of title 10, United States Code, is

11 amended by adding at the end the following: ‘‘The Under

12 Secretary shall prescribe policies and requirements for the

13 educational programs of the defense acquisition university

14 structure established under section 1746 of this title.’’.

15 SEC. 808. REPEAL OF REQUIREMENT FOR DIRECTOR OF

16 ACQUISITION EDUCATION, TRAINING, AND

17 CAREER DEVELOPMENT TO BE WITHIN THE

18 OFFICE OF THE UNDER SECRETARY OF DE19 FENSE FOR ACQUISITION AND TECHNOLOGY.

20 Section 1703 of title 10, United States Code, is

21 amended by striking out ‘‘within the office of the Under

22 Secretary’’.
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1 SEC. 809. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED

2 EMPLOYEE FOR MEMBERSHIP IN AN ACQUI3 SITION CORPS.

4 Section 1732(c) of title 10, United States Code, is

5 amended by adding at the end the following new para6 graph:

7 ‘‘(3) Paragraph (1) of subsection (b) shall not apply

8 to an employee who—

9 ‘‘(A) having previously served in a position

10 within a grade referred to in subparagraph (A) of

11 that paragraph, is currently serving in the same po12 sition within a grade below GS–13, or in another po13 sition within that grade, by reason of a reduction in

14 force or the closure or realignment of a military in15 stallation, or for any other reason other by reason

16 of an adverse personnel action for cause; and

17 ‘‘(B) except as provided in paragraphs (1) and

18 (2), satisfies the educational, experience, and other

19 requirements prescribed under paragraphs (2), (3),

20 and (4) of that subsection.’’.

21 SEC. 810. PILOT PROGRAMS FOR TESTING PROGRAM MAN22 AGER PERFORMANCE OF PRODUCT SUPPORT

23 OVERSIGHT RESPONSIBILITIES FOR LIFE

24 CYCLE OF ACQUISITION PROGRAMS.

25 (a) DESIGNATION OF PILOT PROGRAMS.—The Sec26 retary of Defense, acting through the Secretaries of the
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1 military departments, shall designate 10 acquisition pro2 grams of the military departments as pilot programs on

3 program manager responsibility for product support.

4 (b) RESPONSIBILITIES OF PROGRAM MANAGERS.—

5 The program manager for each acquisition program des6 ignated as a pilot program under this section shall have

7 the responsibility for ensuring that the product support

8 functions for the program are properly carried out over

9 the entire life cycle of the program.

10 (c) REPORT.—Not later than February 1, 1999, the

11 Secretary of Defense shall submit to the congressional de12 fense committees a report on the pilot programs. The re13 port shall contain the following:

14 (1) A description of the acquisition programs

15 designated as pilot programs under subsection (a).

16 (2) For each such acquisition program, the spe17 cific management actions taken to ensure that the

18 program manager has the responsibility for oversight

19 of the performance of the product support functions.

20 (3) Any proposed change to law, policy, regula21 tion, or organization that the Secretary considers de22 sirable, and determines feasible to implement, for

23 ensuring that the program managers are fully re24 sponsible under the pilot programs for the perform25 ance of all such responsibilities.
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1 SEC. 811. SCOPE OF PROTECTION OF CERTAIN INFORMA2 TION FROM DISCLOSURE.

3 Section 2371(i)(2)(A) of title 10, United States Code,

4 is amended by striking out ‘‘cooperative agreement that

5 includes a clause described in subsection (d)’’ and insert6 ing in lieu thereof ‘‘cooperative agreement for performance

7 of basic, applied, or advanced research authorized by sec8 tion 2358 of this title’’.

9 TITLE IX—DEPARTMENT OF DE10 FENSE ORGANIZATION AND

11 MANAGEMENT

12 SEC. 901. REDUCTION IN NUMBER OF ASSISTANT SEC13 RETARY OF DEFENSE POSITIONS.

14 (a) NINE POSITIONS.—Section 138(a) of title 10,

15 United States Code, is amended by striking out ‘‘ten’’ and

16 insert in lieu thereof ‘‘nine’’.

17 (b) CONFORMING AMENDMENT.—The item relating

18 to the Assistant Secretaries of Defense in section 5315

19 of title 5, United States Code, is amended to read as fol20 lows:

21 ‘‘Assistant Secretaries of Defense (9).’’.
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1 SEC. 902. RENAMING OF POSITION OF ASSISTANT SEC2 RETARY OF DEFENSE FOR COMMAND, CON3 TROL, COMMUNICATIONS, AND INTEL4 LIGENCE.

5 Section 138(b)(3) of title 10, United States Code is

6 amended to read as follows:

7 ‘‘(3) One of the Assistant Secretaries shall be the As8 sistant Secretary of Defense for Space and Information

9 Superiority. The Assistant Secretary—

10 ‘‘(A) shall have as his principal duty the overall

11 supervision of the functions of the Department of

12 Defense that relate to space, intelligence, informa13 tion security, information operations, command, con14 trol, communications, computers, surveillance, recon15 naissance, and electromagnetic spectrum; and

16 ‘‘(B) shall be the Chief Information Officer of

17 the Department of Defense.’’.

18 SEC. 903. AUTHORITY TO EXPAND THE NATIONAL DE19 FENSE UNIVERSITY.

20 Section 2165(b) of title 10, United States Code, is

21 amended by adding at the end the following:

22 ‘‘(7) Any other educational institution of the

23 Department of Defense that the Secretary considers

24 appropriate and designates as an institution of the

25 university.’’.
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1 SEC. 904. REDUCTION IN DEPARTMENT OF DEFENSE

2 HEADQUARTERS STAFF.

3 (a) REDUCTION REQUIRED.—(1) The Secretary of

4 Defense shall reduce the number of Federal Government

5 employees and members of the Armed Forces on the head6 quarters staffs of Department of Defense organizations in

7 accordance with this section. The Secretary shall achieve

8 the required reductions not later than September 30,

9 2003.

10 (2) The total number of Federal Government employ11 ees and members of the Armed Forces on the head12 quarters staffs of all organizations within a category of

13 organizations described in paragraph (4) shall be reduced

14 below the baseline number for the category by the percent15 age specified for the category in that paragraph. In the

16 administration of this section, the number of employees

17 employed on a basis other than a full time basis shall be

18 converted to, and expressed as, the equivalent number of

19 full time employees.

20 (3) For the purposes of this subsection, the baseline

21 number for the organizations in a category is the total

22 number of Federal Government employees and members

23 of the Armed Forces on the headquarters staffs of those

24 organizations on October 1, 1996.
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1 (4) The categories of organizations, and the percent2 ages applicable under paragraph (1) to the organizations

3 in such categories, are as follows:

4 (A) The Office of the Secretary of Defense and

5 associated activities, a reduction of 33 percent.

6 (B) Defense agencies, a reduction of 21 per7 cent.

8 (C) Department of Defense field activities and

9 other operating organizations reporting to the Office

10 of the Secretary of Defense, a reduction of 36 per11 cent.

12 (D) The Joint Staff and associated activities, a

13 reduction of 29 percent.

14 (E) The headquarters of the combatant com15 mands and associated activities, a reduction of 7

16 percent.

17 (F) Other headquarters elements (including the

18 headquarters of the military departments and their

19 major commands) and associated activities, a reduc20 tion of 29 percent.

21 (b) LIMITED RELIEF FROM PROHIBITION ON MAN22 AGING BY END-STRENGTH.—(1) The Secretary may waive

23 the requirements and restrictions of section 129 of title

24 10, United States Code, for an organization or activity

25 covered by subsection (a) to the extent that the Secretary
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1 determines necessary to achieve the personnel reductions

2 required by that subsection.

3 (2) Not later than 30 days after exercising the waiver

4 authority under paragraph (1) in the case of an organiza5 tion or activity, the Secretary shall notify the congres6 sional defense committees of the scope and duration of the

7 waiver and the reasons for granting the waiver.

8 (c) MANAGEMENT BY BUDGET.—(1) The Secretary

9 shall waive the requirement under subsection (a) to reduce

10 the number of personnel on the headquarters staff of an

11 organization or activity if the Secretary determines that

12 the budget authority available for the organization or ac13 tivity for fiscal year 2003 has been reduced below the

14 budget authority available for the organization or activity

15 for fiscal year 1996 by at least the percentage equal to

16 one-fifth of the percentage specified in subsection (a)(4)

17 for the category of the organization or activity.

18 (2) In this subsection, the term ‘‘budget authority’’

19 has the meaning given that term in section 3(2)(A) of the

20 Congressional Budget Act of 1974 (2 U.S.C. 622(2)(A)).

21 (d) JOINT AND DEFENSE-WIDE ACTIVITIES.—If the

22 Secretary consolidates functions in a Department of De23 fense-wide or joint organization or activity described in

24 subparagraph (A), (B), (C), (D), or (E) of subsection

25 (a)(4) in order to meet the requirement for reduction in
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1 the personnel of the other headquarters (including the

2 headquarters of the military departments and their major

3 commands) referred to in subparagraph (F) of such sub4 section, the Secretary may apply to that organization or

5 activity, instead of the percentage that would otherwise

6 apply under such subsection, a lesser percentage that is

7 appropriate to reflect the increased responsibilities of the

8 organization or activity.

9 (e) REPORT.—Not later than March 1, 1999, the

10 Secretary of Defense shall submit to the congressional de11 fense committees a report containing a plan to implement

12 the personnel reductions required by this section.

13 (f) CATEGORIES DEFINED.—In this section:

14 (1) The term ‘‘Office of the Secretary of De15 fense and associated activities’’ means the following

16 organizations and activities:

17 (A) The Office of the Secretary of Defense,

18 as defined in section 131 of title 10, United

19 States Code.

20 (B) The defense support activities that

21 perform technical and analytical support for the

22 Office of the Secretary of Defense.

23 (2) The term ‘‘defense agencies’’ means the fol24 lowing organizations and activities:
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1 (A) The Ballistic Missile Defense Organi2 zation.

3 (B) The Defense Advanced Research

4 Projects Agency.

5 (C) The Defense Commissary Agency.

6 (D) The Defense Contract Audit Agency.

7 (E) The Defense Finance and Accounting

8 Services.

9 (F) The Defense Information Systems

10 Agency.

11 (G) The Defense Legal Services Agency.

12 (H) The Defense Logistics Agency.

13 (I) The Defense Security Assistance Agen14 cy.

15 (J) The Defense Security Service.

16 (K) The Defense Special Weapons Agency.

17 (L) The On-Site Inspection Agency.

18 (M) The Treaty Compliance and Threat

19 Reduction Agency.

20 (3) The term ‘‘Department of Defense field ac21 tivities and other operating organizations reporting

22 to the Office of the Secretary of Defense’’ means the

23 following organizations and activities:

24 (A) The American Forces Information

25 Service.
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1 (B) The TRICARE Support Office.

2 (C) The Office of Economic Adjustment.

3 (D) The Department of Defense Education

4 Activity.

5 (E) Washington Headquarters Services.

6 (F) The Department of Defense Human

7 Resources Activity.

8 (G) The Defense Prisoner of War/Missing

9 Personnel Office.

10 (H) The Defense Medical Programs Activ11 ity.

12 (I) The Defense Technology Security Ad13 ministration.

14 (J) The C4I Support Activity.

15 (K) The Plans and Program Analysis Sup16 port Center.

17 (L) The Defense Airborne Reconnaissance

18 Office.

19 (M) The Defense Acquisition University.

20 (N) The Director of Military Support.

21 (O) The Defense Technical Information

22 Center.

23 (P) The National Defense University.
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1 (4) The term ‘‘Joint Staff and associated activi2 ties’’ means the following organizations and activi3 ties:

4 (A) The Joint Staff referred to in section

5 155 of title 10, United States Code.

6 (B) Department of Defense activities that

7 are controlled by the Chairman of the Joint

8 Chiefs of Staff and report directly to the Joint

9 Staff.

10 (5) The term ‘‘headquarters of the combatant

11 commands’’ means the headquarters of the combat12 ant commands, as defined in section 161(c)(3) of

13 title 10, United States Code.

14 (6) The term ‘‘other headquarters elements (in15 cluding the headquarters of the military departments

16 and their major commands)’’ means the following

17 organizations and activities:

18 (A) The military department headquarters

19 listed and defined in Department of Defense

20 Directive 5100.73, ‘‘Department of Defense

21 Management Headquarters and Headquarters

22 Support Activities’’, as in effect on November

23 12, 1996.

24 (B) Other military headquarters elements

25 defined in such directive that are not otherwise
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1 covered by paragraphs (1), (2), (3), (4), and

2 (5).

3 (g) REPEAL OF SUPERSEDED PROVISIONS.—(1) Sec4 tions 130a and 194 of title 10, United States Code, are

5 repealed.

6 (2)(A) The table of sections at the beginning of chap7 ter 3 of such title is amended by striking out the item

8 relating to section 130a.

9 (B) The table of sections at the beginning of chapter

10 8 of such title is amended by striking out the item relating

11 to section 194.

12 SEC. 905. PERMANENT REQUIREMENT FOR QUADRENNIAL

13 DEFENSE REVIEW.

14 (a) REVIEW REQUIRED.—Chapter 2 of title 10,

15 United States Code, is amended by inserting after section

16 116 the following:

17 ‘‘§ 117. Quadrennial defense review

18 ‘‘(a) REVIEW REQUIRED.—The Secretary of Defense,

19 in consultation with the Chairman of the Joint Chiefs of

20 Staff, shall conduct in each year in which a President is

21 inaugurated a comprehensive examination of the defense

22 strategy, force structure, force modernization plans, infra23 structure, budget plan, and other elements of the defense

24 program and policies with a view toward determining and

25 expressing the defense strategy of the United States and
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1 establishing a revised defense plan for the ensuing 10

2 years and a revised defense plan for the ensuing 20 years.

3 ‘‘(b) CONSIDERATION OF REPORTS OF NATIONAL

4 DEFENSE PANEL.—In conducting the review, the Sec5 retary shall take into consideration the reports of the Na6 tional Defense Panel submitted under section 181(d) of

7 this title.

8 ‘‘(c) REPORT TO CONGRESS.—The Secretary shall

9 submit a report on each review to the Committee on

10 Armed Services of the Senate and the Committee on Na11 tional Security of the House of Representatives not later

12 than September 30 of the year in which the review is con13 ducted. The report shall include the following:

14 ‘‘(1) The results of the review, including a com15 prehensive discussion of the defense strategy of the

16 United States and the force structure best suited to

17 implement that strategy.

18 ‘‘(2) The threats examined for purposes of the

19 review and the scenarios developed in the examina20 tion of such threats.

21 ‘‘(3) The assumptions used in the review, in22 cluding assumptions relating to the cooperation of

23 allies and mission-sharing, levels of acceptable risk,

24 warning times, and intensity and duration of con25 flict.
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1 ‘‘(4) The effect on the force structure of prep2 arations for and participation in peace operations

3 and military operations other than war.

4 ‘‘(5) The effect on the force structure of the

5 utilization by the Armed Forces of technologies an6 ticipated to be available for the ensuing 10 years

7 and technologies anticipated to be available for the

8 ensuing 20 years, including precision guided muni9 tions, stealth, night vision, digitization, and commu10 nications, and the changes in doctrine and oper11 ational concepts that would result from the utiliza12 tion of such technologies.

13 ‘‘(6) The manpower and sustainment policies

14 required under the defense strategy to support en15 gagement in conflicts lasting more than 120 days.

16 ‘‘(7) The anticipated roles and missions of the

17 reserve components in the defense strategy and the

18 strength, capabilities, and equipment necessary to

19 assure that the reserve components can capably dis20 charge those roles and missions.

21 ‘‘(8) The appropriate ratio of combat forces to

22 support forces (commonly referred to as the ‘‘tooth23 to-tail’’ ratio) under the defense strategy, including,

24 in particular, the appropriate number and size of
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1 headquarter units and Defense Agencies for that

2 purpose.

3 ‘‘(9) The air-lift and sea-lift capabilities re4 quired to support the defense strategy.

5 ‘‘(10) The forward presence, pre-positioning,

6 and other anticipatory deployments necessary under

7 the defense strategy for conflict deterrence and ade8 quate military response to anticipated conflicts.

9 ‘‘(11) The extent to which resources must be

10 shifted among two or more theaters under the de11 fense strategy in the event of conflict in such thea12 ters.

13 ‘‘(12) The advisability of revisions to the Uni14 fied Command Plan as a result of the defense strat15 egy.

16 ‘‘(13) Any other matter the Secretary considers

17 appropriate.’’.

18 (b) NATIONAL DEFENSE PANEL.—Chapter 7 of such

19 title is amended by adding at the end the following:

20 ‘‘§ 181. National Defense Panel

21 ‘‘(a) ESTABLISHMENT.—Not later than January 1 of

22 each year immediately preceding a year in which a Presi23 dent is to be inaugurated, the Secretary of Defense shall

24 establish a nonpartisan, independent panel to be known
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1 as the National Defense Panel. The Panel shall have the

2 duties set forth in this section.

3 ‘‘(b) MEMBERSHIP.—The Panel shall be composed of

4 a chairman and eight other individuals appointed by the

5 Secretary, in consultation with the chairman and ranking

6 member of the Committee on Armed Services of the Sen7 ate and the chairman and ranking member of the Commit8 tee on National Security of the House of Representatives,

9 from among individuals in the private sector who are rec10 ognized experts in matters relating to the national security

11 of the United States.

12 ‘‘(c) DUTIES.—The Panel shall—

13 ‘‘(1) conduct and submit to the Secretary of

14 Defense and to the Committee on Armed Services of

15 the Senate and the Committee on National Security

16 of the House of Representatives a comprehensive as17 sessment of the defense strategy, force structure,

18 force modernization plans, infrastructure, budget

19 plan, and other elements of the defense program and

20 policies with a view toward recommending a defense

21 strategy of the United States and a revised defense

22 plan for the ensuing 10 years and a revised defense

23 plan for the ensuing 20 years; and
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1 ‘‘(2) identify issues that the Panel recommends

2 for assessment during the next review to be con3 ducted under section 117 of this title.

4 ‘‘(d) REPORT.—(1) The Panel, in the year that it is

5 conducting an assessment under subsection (c), shall sub6 mit to the Secretary of Defense and to the Committee on

7 Armed Services of the Senate and the Committee on Na8 tional Security of the House of Representatives two re9 ports on its activities and the findings and recommenda10 tions of the Panel, including any recommendations for leg11 islation that the Panel considers appropriate, as follows:

12 ‘‘(A) An interim report not later than July 1 of

13 the year.

14 ‘‘(B) A final report not later than December 1

15 of the year.

16 ‘‘(2) Not later than December 15 of the year in which

17 the Secretary receive a final report under paragraph

18 (1)(B), the Secretary shall submit to the committees re19 ferred to in subsection (b) a copy of the report together

20 with the Secretary’s comments on the report.

21 ‘‘(e) INFORMATION FROM FEDERAL AGENCIES.—

22 The Panel may secure directly from the Department of

23 Defense and any of its components and from any other

24 Federal department and agency such information as the

25 Panel considers necessary to carry out its duties under
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1 this section. The head of the department or agency con2 cerned shall ensure that information requested by the

3 Panel under this subsection is promptly provided.

4 ‘‘(f) PERSONNEL MATTERS.—(1) Each member of

5 the Panel shall be compensated at a rate equal to the daily

6 equivalent of the annual rate of basic pay prescribed for

7 level IV of the Executive Schedule under section 5315 of

8 title 5 for each day (including travel time) during which

9 the member is engaged in the performance of the duties

10 of the Panel.

11 ‘‘(2) The members of the Panel shall be allowed travel

12 expenses, including per diem in lieu of subsistence, at

13 rates authorized for employees of agencies under sub14 chapter I of chapter 57 of title 5 while away from their

15 homes or regular places of business in the performance

16 of services for the Panel.

17 ‘‘(3)(A) The chairman of the Panel may, without re18 gard to the civil service laws and regulations, appoint and

19 terminate an executive director and a staff if the Panel

20 determines that an executive director and staff are nec21 essary in order for the Panel to perform its duties effec22 tively. The employment of an executive director shall be

23 subject to confirmation by the Panel.

24 ‘‘(B) The chairman may fix the compensation of the

25 executive director without regard to the provisions of
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1 chapter 51 and subchapter III of chapter 53 of title 5 re2 lating to classification of positions and General Schedule

3 pay rates, except that the rate of pay for the executive

4 director may not exceed the rate payable for level V of

5 the Executive Schedule under section 5316 of such title.

6 ‘‘(4) Any Federal Government employee may be de7 tailed to the Panel without reimbursement of the employ8 ee’s agency, and such detail shall be without interruption

9 or loss of civil service status or privilege. The Secretary

10 shall ensure that sufficient personnel are detailed to the

11 Panel to enable the Panel to carry out its duties effec12 tively.

13 ‘‘(5) To the maximum extent practicable, the mem14 bers and employees of the Panel shall travel on military

15 aircraft, military ships, military vehicles, or other military

16 conveyances when travel is necessary in the performance

17 of a duty of the Panel, except that no such aircraft, ship,

18 vehicle, or other conveyance may be scheduled primarily

19 for the transportation of any such member or employee

20 when the cost of commercial transportation is less expen21 sive.

22 ‘‘(g) ADMINISTRATIVE PROVISIONS.—(1) The Panel

23 may use the United States mails and obtain printing and

24 binding services in the same manner and under the same
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1 conditions as other departments and agencies of the Fed2 eral Government.

3 ‘‘(2) The Secretary shall furnish the Panel any ad4 ministrative and support services requested by the Panel.

5 ‘‘(3) The Panel may accept, use, and dispose of gifts

6 or donations of services or property.

7 ‘‘(h) PAYMENT OF PANEL EXPENSES.—The com8 pensation, travel expenses, and per diem allowances of

9 members and employees of the Panel shall be paid out of

10 funds available to the Department of Defense for the pay11 ment of compensation, travel allowances, and per diem al12 lowances, respectively, of civilian employees of the Depart13 ment. The other expenses of the Panel shall be paid out

14 of funds available to the Department for the payment of

15 similar expenses incurred by the Department.

16 ‘‘(i) TERMINATION.—The Panel shall terminate at

17 the end of the year following the year in which the Panel

18 submits its final report under subsection (d)(1)(B). For

19 the period that begins 90 days after the date of submittal

20 of the report, the activities and staff of the panel shall

21 be reduced to a level that the Secretary of Defense consid22 ers sufficient to continue the availability of the panel for

23 consultation with the Secretary of Defense and with the

24 Committee on Armed Services of the Senate and the Com-
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1 mittee on National Security of the House of Representa2 tives.’’.

3 (c) CLERICAL AMENDMENTS.—(1) The table of sec4 tions at the beginning of chapter 2 of title 10, United

5 States Code, is amended by inserting after the item relat6 ing to section 116 the following:

‘‘117. Quadrennial defense review.’’.

7 (2) The table of sections at the beginning of chapter

8 7 of such title is amended by adding at the end the follow9 ing:

‘‘181. National Defense Panel.’’.

10 (d) CONTINUATION OF 1997 NATIONAL DEFENSE

11 PANEL.—Section 924(j) of the Military Force Structure

12 Review Act of 1996 (subtitle B of title IX of Public Law

13 104–201; 110 Stat. 2626; 10 U.S.C. 111 note) is amended

14 to read as follows:

15 ‘‘(j) TERMINATION.—The Panel shall continue until

16 the first National Defense Panel is established under sec17 tion 181(a) of title 10, United States Code, and shall then

18 terminate. The activities and staff of the panel shall be

19 reduced to a level that the Secretary of Defense considers

20 sufficient to continue the availability of the panel for con21 sultation with the Secretary of Defense and with the Com22 mittee on Armed Services of the Senate and the Commit23 tee on National Security of the House of Representa24 tives.’’.
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1 SEC. 906. MANAGEMENT REFORM FOR RESEARCH, DEVEL2 OPMENT, TEST, AND EVALUATION.

3 (a) REQUIREMENTS FOR ANALYSIS AND PLAN.—(1)

4 The Secretary of Defense, acting through the Under Sec5 retary of Defense for Acquisition and Technology, shall

6 analyze the structures and processes of the Department

7 of Defense for management of its laboratories and test

8 and evaluation centers and, taking into consideration the

9 analysis, develop a plan for improving the management of

10 the laboratories and centers. The plan shall include the

11 reorganizations and reforms that the Secretary considers

12 appropriate.

13 (2) The analysis shall include the following:

14 (A) Opportunities to achieve efficiency and re15 duce duplication of efforts by consolidating respon16 sibilities for research, development, test, and evalua17 tion, by area or function, in a military department

18 as a lead agency or executive agent.

19 (B) Reforms of the management processes of

20 Department of Defense laboratories and test and

21 evaluation centers that would reduce costs and in22 crease efficiency in the conduct of research, develop23 ment, test, and evaluation.

24 (C) Opportunities for Department of Defense

25 laboratories and test and evaluation centers to enter

26 into partnership arrangements with laboratories in
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1 industry, academia, and other Federal agencies that

2 demonstrate leadership, initiative, and innovation in

3 research, development, test, and evaluation.

4 (D) The benefits of consolidating test ranges

5 and test facilities under one management structure.

6 (E) Personnel demonstration projects and pilot

7 projects that are being carried out to address the

8 challenges for and constraints on recruitment and

9 retention of scientists and engineers.

10 (F) The extent to which there is disseminated

11 within the Department of Defense laboratories and

12 test and evaluation centers information regarding

13 initiatives that have successfully improved efficiency

14 through reform of management processes and other

15 means.

16 (G) Any cost savings that can be derived di17 rectly from reorganization of management struc18 tures.

19 (H) Options for reinvesting any such cost sav20 ings in the Department of Defense laboratories and

21 test and evaluation centers.

22 (3) The Secretary shall submit the plan required

23 under paragraph (1) to the congressional defense commit24 tees not later than 180 days after the date of the enact25 ment of this Act.
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1 (b) COST-BASED MANAGEMENT INFORMATION SYS2 TEM.—(1) The Secretary of Defense shall develop a plan,

3 including a schedule, for establishing a cost-based man4 agement information system for Department of Defense

5 laboratories and test and evaluation centers. The system

6 shall provide for accurately identifying and comparing the

7 costs of operating each laboratory and each center.

8 (2) In preparing the plan, the Secretary shall assess

9 the feasibility and desirability of establishing a common

10 methodology for assessing costs. The Secretary shall con11 sider the use of a revolving fund as one potential meth12 odology.

13 (3) The Secretary shall submit the plan required

14 under paragraph (1) to the congressional defense commit15 tees not later than 90 days after the date of the enactment

16 of this Act.

17 SEC. 907. RESTRUCTURING OF ADMINISTRATION OF FISH18 ER HOUSES.

19 (a) ADMINISTRATION AS NONAPPROPRIATED FUND

20 INSTRUMENTALITY.—(1) Chapter 147 of title 10, United

21 States Code, is amended by adding at the end the follow22 ing:
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1 ‘‘§ 2490b. Fisher Houses: administration as non2 appropriated fund instrumentality

3 ‘‘(a) FISHER HOUSES AND SUITES.—(1) For the

4 purposes of this section, a Fisher House is a housing facil5 ity that—

6 ‘‘(A) is located in proximity to a health care fa7 cility of the Army, the Air Force, or the Navy;

8 ‘‘(B) is available for residential use on a tem9 porary basis by patients of that health care facility,

10 members of the families of such patients, and others

11 providing the equivalent of familial support for such

12 patients; and

13 ‘‘(C) has been constructed and donated by—

14 ‘‘(i) the Zachary and Elizabeth M. Fisher

15 Armed Services Foundation; or

16 ‘‘(ii) another source, if the Secretary des17 ignates the housing facility as a Fisher House.

18 ‘‘(2) For the purposes of this section, a Fisher Suite

19 is one or more rooms that meet the requirements of sub20 paragraph (A) and (B) of paragraph (1), are constructed,

21 altered, or repaired and donated by a source described in

22 subparagraph (C) of that paragraph, and are designated

23 by the Secretary concerned as a Fisher Suite.

24 ‘‘(b) NONAPPROPRIATED FUND INSTRUMENTAL25 ITY.—The Secretary of a military department shall admin26 ister all Fisher Houses and Fisher Suites associated with
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1 health care facilities of that military department as a non2 appropriated fund instrumentality of the United States.

3 ‘‘(c) GOVERNANCE.—The Secretary shall establish a

4 system for the governance of the nonappropriated fund in5 strumentality.

6 ‘‘(d) CENTRAL FUND.—The Secretary shall establish

7 a single fund as the source of funding for the operation,

8 maintenance, and improvement of all Fisher Houses and

9 Fisher Suites of the nonappropriated fund instrumental10 ity.

11 ‘‘(e) ACCEPTANCE OF CONTRIBUTIONS AND FEES.—

12 The Secretary of a military department may accept

13 money, property, and services donated for the support of

14 a Fisher House or Fisher Suite, and may impose fees re15 lating to the use of the Fisher Houses and Fisher Suites.

16 All monetary donations, and the proceeds of the disposal

17 of any other donated property, accepted by the Secretary

18 under this subsection shall be credited to the fund estab19 lished under subsection (d) for the Fisher Houses and

20 Fisher Suites of that military department and shall be

21 available for all Fisher Houses and Fisher Suites of that

22 military department.

23 ‘‘(f) ANNUAL REPORT.—Not later than January 15

24 of each year, the Secretary of each military department

25 shall submit a report on Fisher House operations to the
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1 Committee on Armed Services of the Senate and the Com2 mittee on National Security of the House of Representa3 tives. The report shall include, at a minimum, the follow4 ing:

5 ‘‘(1) The amount in the fund established by the

6 Secretary for the Fisher Houses and Fisher Suites

7 under subsection (d), as of October 1 of the previous

8 year.

9 ‘‘(2) The operation of the fund during the fiscal

10 year ending on the day before that date, including—

11 ‘‘(A) all gifts, fees, and interest credited to

12 the fund; and

13 ‘‘(B) the disbursements from the fund.

14 ‘‘(3) The budget for the operation of the Fisher

15 Houses and Fisher Suites for the fiscal year in

16 which the report is submitted.’’.

17 (2) The table of sections at the beginning of such

18 chapter is amended by adding at the end the following:

‘‘2490b. Fisher Houses: administration as nonappropriated fund instrumentality.’’.

19 (b) FUNDING TRANSITION.—(1) Not later than 90

20 days after the date of the enactment of this Act the Sec21 retary of each military department shall—

22 (A) establish the fund required under section

23 2490b(d) of title 10, United States Code (as added

24 by subsection (a)); and
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1 (B) close the Fisher House trust fund for that

2 department and transfer the amounts in the closed

3 fund to the newly established fund.

4 (2) Of the amounts appropriated for the Navy pursu5 ant to section 301, the Secretary of the Navy shall trans6 fer to the fund established by the Secretary under section

7 2490b(d) of title 10, United States Code (as added by sub8 section (a)) such amount as the Secretary considers appro9 priate for establishing in the fund a corpus sufficient for

10 operating Fisher Houses and Fisher Suites of the Navy.

11 (3) Of the amounts appropriated for the Air Force

12 pursuant to section 301, the Secretary of the Air Force

13 shall transfer to the fund established by the Secretary

14 under section 2490b(d) of title 10, United States Code

15 (as added by subsection (a)) such amount as the Secretary

16 considers appropriate for establishing in the fund a corpus

17 sufficient for operating Fisher Houses and Fisher Suites

18 of the Air Force.

19 (4) The Secretary of each military department, upon

20 completing the actions required of the Secretary under the

21 preceding paragraphs of this subsection, shall submit to

22 Congress a report containing—

23 (A) the Secretary’s certification that those ac24 tions have been completed; and
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1 (B) a statement of the amount deposited in the

2 newly established fund.

3 (5) Amounts transferred to a fund established under

4 section 2490b(d) of title 10, United States Code (as added

5 by subsection (a)), shall be available without fiscal year

6 limitation for the purposes for which the fund is estab7 lished and shall be administered as nonappropriated

8 funds.

9 (c) CONFORMING REPEALS.—(1) Section 2221 of

10 title 10, United States Code, and the item relating to that

11 section in the table of sections at the beginning of chapter

12 131 of such title, are repealed.

13 (2) Section 1321(a) of title 31, United States Code,

14 is amended by striking out paragraphs (92), (93), and

15 (94).

16 (3) The amendments made by paragraphs (1) and (2)

17 shall take effect 90 days after the date of the enactment

18 of this Act.

19 TITLE X—GENERAL PROVISIONS

20 Subtitle A—Financial Matters

21 SEC. 1001. TRANSFER AUTHORITY.

22 (a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—

23 (1) Upon determination by the Secretary of Defense that

24 such action is necessary in the national interest, the Sec25 retary may transfer amounts of authorizations made avail-
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1 able to the Department of Defense in this division for fis2 cal year 1999 between any such authorizations for that

3 fiscal year (or any subdivisions thereof). Amounts of au4 thorizations so transferred shall be merged with and be

5 available for the same purposes as the authorization to

6 which transferred.

7 (2) The total amount of authorizations that the Sec8 retary may transfer under the authority of this section

9 may not exceed $2,000,000,000.

10 (b) LIMITATIONS.—The authority provided by this

11 section to transfer authorizations—

12 (1) may only be used to provide authority for

13 items that have a higher priority than the items

14 from which authority is transferred; and

15 (2) may not be used to provide authority for an

16 item that has been denied authorization by Con17 gress.

18 (c) EFFECT ON AUTHORIZATION AMOUNTS.—A

19 transfer made from one account to another under the au20 thority of this section shall be deemed to increase the

21 amount authorized for the account to which the amount

22 is transferred by an amount equal to the amount trans23 ferred.
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1 (d) NOTICE TO CONGRESS.—The Secretary shall

2 promptly notify Congress of each transfer made under

3 subsection (a).

4 SEC. 1002. AUTHORIZATION OF EMERGENCY APPROPRIA5 TIONS FOR FISCAL YEAR 1999.

6 (a) AUTHORIZATION OF APPROPRIATIONS.—Funds

7 are hereby authorized to be appropriated for the Depart8 ment of Defense for fiscal year 1999 for incremental costs

9 of operations of the Armed Forces in and around Bosnia

10 and Herzegovina in the total amount of $1,858,600,000,

11 as follows:

12 (1) For military personnel, in addition to the

13 amounts authorized to be appropriated in title IV of

14 this Act:

15 (A) For the Army, $297,700,000.

16 (B) For the Navy, $9,700,000.

17 (C) For the Marine Corps, $2,700,000.

18 (D) For the Air Force, $33,900,000.

19 (E) For the Naval Reserve, $2,200,000.

20 (2) For operation and maintenance for the

21 Overseas Contingency Operations Transfer Fund, in

22 addition to the total amount authorized to be appro23 priated for that fund in section 301(a)(25) of this

24 Act, $1,512,400,000.
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1 (b) TRANSFER AUTHORITY.—Upon determination by

2 the Secretary of Defense that such action is necessary in

3 the national interest, the Secretary may transfer amounts

4 of authorizations made available to the Department of De5 fense in subsection (a)(2) for fiscal year 1999 to any of

6 the authorizations for that fiscal year in section 301.

7 Amounts of authorizations so transferred shall be merged

8 with and be available for the same purposes as the author9 ization to which transferred. The transfer authority under

10 this subsection is in addition to any other transfer author11 ity provided in this Act.

12 (c) DESIGNATION AS EMERGENCY.—Funds author13 ized to be appropriated in accordance with subsection (a)

14 are designated as emergency requirements pursuant to

15 section 251(b)(2)(A) of the Balanced Budget and Emer16 gency Deficit Control Act of 1985.

17 SEC. 1003. AUTHORIZATION OF PRIOR EMERGENCY SUP18 PLEMENTAL APPROPRIATIONS FOR FISCAL

19 YEAR 1998.

20 Amounts authorized to be appropriated to the De21 partment of Defense for fiscal year 1998 in the National

22 Defense Authorization Act for Fiscal Year 1998 (Public

23 Law 105–85) are hereby adjusted, with respect to any

24 such authorized amount, by the amount by which appro25 priations pursuant to such authorization were increased
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1 (by a supplemental appropriation) or decreased (by a re2 scission), or both, in the 1998 Supplemental Appropria3 tions and Rescissions Act (Public Law 105–174).

4 SEC. 1004. PARTNERSHIP FOR PEACE INFORMATION SYS5 TEM MANAGEMENT.

6 Funds authorized to be appropriated under titles II

7 and III of this Act shall be available for Partnership for

8 Peace information management systems as follows:

9 (1) Of the amount authorized to be appro10 priated under section 201(4) for Defense-wide activi11 ties, $2,000,000.

12 (2) Of the amount authorized to be appro13 priated under section 301 for Defense-wide activi14 ties, $3,000,000.

15 Subtitle B—Naval Vessels

16 SEC. 1011. IOWA CLASS BATTLESHIP RETURNED TO NAVAL

17 VESSEL REGISTER.

18 The U.S.S. Iowa shall be listed, and maintained, on

19 the Naval Vessel Register under section 1011 of the Na20 tional Defense Authorization Act for Fiscal Year 1996

21 (Public Law 104–106; 110 Stat. 421) instead of the

22 U.S.S. New Jersey, which shall be stricken from the reg23 ister. The preceding sentence does not affect the continued

24 effectiveness of subsection (d) of such section.
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1 SEC. 1012. LONG-TERM CHARTER OF THREE VESSELS IN

2 SUPPORT OF SUBMARINE RESCUE, ESCORT,

3 AND TOWING.

4 (a) AUTHORITY.—The Secretary of the Navy may

5 enter into one or more long-term charters in accordance

6 with section 2401 of title 10, United States Code, for

7 three vessels to support the rescue, escort, and towing of

8 submarines.

9 (b) VESSELS AND PERIODS.—The vessels that may

10 be chartered, and the periods for which the vessels may

11 be chartered, under subsection (a) are as follows:

12 (1) The Carolyn Chouest (United States official

13 number D102057), for any period that ends before

14 October 1, 2012.

15 (2) The Kellie Chouest (United States official

16 number D1038519), for any period that ends before

17 October 1, 2005.

18 (3) The Dolores Chouest (United States official

19 number D600288), for any period that ends before

20 October 1, 2005.

21 (c) CONDITION ON CHARTER OF ONE VESSEL.—The

22 charter for the Carolyn Chouest shall include a clause that

23 permits the United States to terminate the charter for the

24 convenience of the United States without any liability for

25 further payment (other than for unpaid amounts due

26 under the charter for periods before the date of the termi-
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1 nation) in the event that the need for the vessel under

2 the charter terminates before the end of the charter period

3 by reason of the decommissioning of a submarine research

4 vessel supported under the charter.

5 SEC. 1013. TRANSFERS OF NAVAL VESSELS TO FOREIGN

6 COUNTRIES.

7 (a) TRANSFERS BY GRANT.—The Secretary of the

8 Navy is authorized to transfer vessels to foreign countries

9 on a grant basis under section 516 of the Foreign Assist10 ance Act of 1961 (22 U.S.C. 2321j) as follows:

11 (1) The tank landing ship Newport (LST

12 1179).

13 (2) The civilian crewed ocean surveillance ship

14 Assurance (T-AGOS 5).

15 (3) The frigates Hepburn (FF 1055), W.S.

16 Simms (FF 1059), Paul (FF 1080), and Miller (FF

17 1091).

18 (b) TRANSFERS BY SALE.—The Secretary of the

19 Navy is authorized to transfer vessels to foreign countries

20 on a sales basis under section 21 of the Arms Export Con21 trol Act (22 U.S.C. 2761) as follows:

22 (1) The guided missile frigates Duncan (FFG

23 10), Tisdale (FFG 27), and Reid (FFG 30).

24 (2) The dock landing ship Pensacola (LSD 38).
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1 (3) The medium floating drydock Competent

2 (AFDM 6).

3 (4) The tank landing ship Peoria (LST 1183).

4 (5) The civilian crewed ocean surveillance ship

5 Triumph (T-AGOS 4).

6 (6) The drydocks Waterford (ARD 5) and

7 Alamagordo (ARDM 2).

8 (7) The unnamed medium floating drydock

9 bearing hull number AFDM 2.

10 (8) The auxiliary repair dock San Onofre (ARD

11 30).

12 (c) TRANSFERS BY LEASE OR SALE.—The Secretary

13 of the Navy is authorized to transfer vessels to foreign

14 countries on a lease basis under section 61 of the Arms

15 Export Control Act (22 U.S.C. 2796) or on a sales basis

16 under section 21 of the Arms Export Control Act (22

17 U.S.C. 2761) as follows:

18 (1) The guided missile destroyers Kidd (DDG

19 993), Callaghan (DDG 994), Scott (DDG 995) and

20 Chandler (DDG 996).

21 (2) The fleet oiler Merrimack (AO 179).

22 (d) FINANCING FOR TRANSFERS BY LEASE.—Section

23 23 of the Arms Export Control Act (22 U.S.C. 2763) may

24 be used to provide financing for any transfer by lease

25 under subsection (c) in the same manner as if such trans-
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1 fer were a procurement by the recipient nation of a de2 fense article.

3 (e) COSTS OF TRANSFERS.—Any expense incurred by

4 the United States in connection with a transfer authorized

5 by subsection (a), (b), or (c) shall be charged to the recipi6 ent (notwithstanding section 516(e)(1) of the Foreign As7 sistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case

8 of a transfer authorized under subsection (a)).

9 (f) REPAIR AND REFURBISHMENT IN UNITED

10 STATES SHIPYARDS.—The Secretary of the Navy shall re11 quire, as a condition of the transfer of a vessel under this

12 section, that the country to which the vessel is transferred

13 have such repair or refurbishment of the vessel as is need14 ed, before the vessel joins the naval forces of that country,

15 performed at a shipyard located in the United States, in16 cluding a United States Navy shipyard.

17 (g) EXPIRATION OF AUTHORITY.—The authority to

18 transfer vessels under this section shall expire at the end

19 of the two-year period beginning on the date of the enact20 ment of this Act, except that a lease entered into during

21 that period under any provision of subsection (c) may be

22 renewed.
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1 Subtitle C—Miscellaneous Report

2 Requirements and Repeals

3 SEC. 1021. REPEAL OF REPORTING REQUIREMENTS.

4 (a) REPORTS REQUIRED BY TITLE 10.—

5 (1) HEALTH AND MEDICAL CARE STUDIES AND

6 DEMONSTRATIONS.—Section 1092(a) of title 10,

7 United States Code, is amended by striking out

8 paragraph (3).

9 (2) ANNUAL REPORT ON USE OF MONEY RENT10 ALS FOR LEASES OF NON-EXCESS PROPERTY.—Sec11 tion 2667(d) of title 10, United States Code, is

12 amended—

13 (A) in paragraph (1)(A)(ii), by striking out

14 ‘‘paragraph (4) or (5)’’ and inserting in lieu

15 thereof ‘‘paragraph (3) or (4)’’.

16 (B) by striking out paragraph (3); and

17 (C) by redesignating paragraphs (4) and

18 (5) as paragraphs (3) and (4), respectively.

19 (b) REPORT REQUIRED BY MILITARY CONSTRUCTION

20 AUTHORIZATION ACT.—Section 2819 of the National De21 fense Authorization Act, Fiscal Year 1989 (Public Law

22 100–456; 102 Stat. 2119; 10 U.S.C. 2391 note,), relating

23 to the Commission on Alternative Utilization of Military

24 Facilities, is amended—
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1 (1) in subsection (a) by striking out ‘‘(a) ES2 TABLISHMENT OF COMMISSION.—’’; and

3 (2) by striking out subsections (b) and (c).

4 SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE FINAN5 CIAL MANAGEMENT IMPROVEMENT PLAN.

6 Not later than 60 days after the date on which the

7 Secretary of Defense submits the first biennial financial

8 management improvement plan required by section 2222

9 of title 10, United States Code, the Comptroller General

10 shall submit to Congress an analysis of the plan. The anal11 ysis shall include a discussion of the content of the plan

12 and the extent to which the plan—

13 (1) complies with the requirements of such sec14 tion 2222; and

15 (2) is a workable plan for addressing the finan16 cial management problems of the Department of De17 fense.

18 SEC. 1023. FEASIBILITY STUDY OF PERFORMANCE OF DE19 PARTMENT OF DEFENSE FINANCE AND AC20 COUNTING FUNCTIONS BY PRIVATE SECTOR

21 SOURCES OR OTHER FEDERAL GOVERNMENT

22 SOURCES.

23 (a) STUDY REQUIRED.—The Secretary of Defense

24 shall carry out a study of the feasibility and advisability

25 of selecting on a competitive basis the source or sources
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1 for performing the finance and accounting functions of the

2 Department of Defense from among private sector

3 sources, the Defense Finance and Accounting Service of

4 the Department of Defense, the military departments, and

5 other Federal Government agencies.

6 (b) REPORT.—Not later than October 1, 1999, the

7 Secretary shall submit a written report on the results of

8 the study to Congress. The report shall include the follow9 ing:

10 (1) A discussion of how the finance and ac11 counting functions of the Department of Defense are

12 performed, including the necessary operations, the

13 operations actually performed, the personnel re14 quired for the operations, and the core competencies

15 that are necessary for the performance of those

16 functions.

17 (2) A comparison of the performance of the fi18 nance and accounting functions by the Defense Fi19 nance and Accounting Service with the performance

20 of finance and accounting functions by the other

21 sources referred to in subsection (a) that exemplify

22 the best finance and accounting practices and re23 sults, together with a comparison of the costs of the

24 performance of such functions by the Defense Fi25 nance and Accounting Service and the estimated
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1 costs of the performance of such functions by those

2 other sources.

3 (3) The finance and accounting functions, if

4 any, that are appropriate for performance by those

5 other sources, together with a concept of operations

6 that—

7 (A) specifies the mission;

8 (B) identifies the finance and accounting

9 operations to be performed;

10 (C) describes the work force that is nec11 essary to perform those operations;

12 (D) discusses where the operations are to

13 be performed;

14 (E) describes how the operations are to be

15 performed; and

16 (F) discusses the relationship between how

17 the operations are to be performed and the mis18 sion.

19 (4) An analysis of how Department of Defense

20 programs or processes would be affected by the per21 formance of the finance and accounting functions of

22 the Department of Defense by one or more of those

23 other sources.

24 (5) The status of the efforts within the Depart25 ment of Defense to consolidate and eliminate redun-
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1 dant finance and accounting systems and to better

2 integrate the automated and manual systems of the

3 department that provide input to financial manage4 ment or accounting systems of the department.

5 (6) A description of a feasible and effective

6 process for selecting, on a competitive basis, sources

7 to perform the finance and accounting functions of

8 the Department of Defense from among the sources

9 referred to in subsection (a), including a discussion

10 of the selection criteria considered appropriate.

11 (7) Any recommended policy for selecting

12 sources to perform the finance and accounting func13 tions of the Department of Defense on a competitive

14 basis from among the sources referred to in sub15 section (a), together with such other recommenda16 tions that the Secretary considers appropriate.

17 (8) An analysis of the costs and benefits of the

18 various policies and actions recommended.

19 (9) A discussion of any findings, analyses, and

20 recommendations of the performance of the finance

21 and accounting functions of the Department of De22 fense that have been made by the Task Force on

23 Defense Reform appointed by the Secretary of De24 fense.
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1 (c) MARKET RESEARCH.—In carrying out the study,

2 the Secretary shall perform market research to determine

3 whether the availability of responsible private sector

4 sources of finance and accounting services is sufficient for

5 there to be a reasonable expectation of meaningful com6 petition for any contract for the procurement of finance

7 and accounting services for the Department of Defense.

8 SEC. 1024. REORGANIZATION AND CONSOLIDATION OF OP9 ERATING LOCATIONS OF THE DEFENSE FI10 NANCE AND ACCOUNTING SERVICE.

11 (a) LIMITATION.—No operating location of the De12 fense Finance and Accounting Service may be closed be13 fore the date that is six months after the date on which

14 the Secretary submits to Congress the plan required by

15 subsection (b).

16 (b) PLAN REQUIRED.—The Secretary of Defense

17 shall submit to Congress a strategic plan for improving

18 the financial management operations at each of the oper19 ating locations of the Defense Finance and Accounting

20 Service.

21 (c) CONTENT OF PLAN.—The plan shall include, at

22 a minimum, the following:

23 (1) The workloads that it is necessary to per24 form at the operating locations each fiscal year.
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1 (2) The capacity and number of operating loca2 tions that are necessary for performing the work3 loads.

4 (3) A discussion of the costs and benefits that

5 could result from reorganizing the operating loca6 tions of the Defense Finance and Accounting Service

7 on the basis of function performed, together with the

8 Secretary’s assessment of the feasibility of carrying

9 out such a reorganization.

10 (d) SUBMITTAL OF PLAN.—The plan shall be submit11 ted to the Committee on Armed Services of the Senate

12 and the Committee on National Security of the House of

13 Representatives not later than December 15, 1998.

14 SEC. 1025. REPORT ON INVENTORY AND CONTROL OF MILI15 TARY EQUIPMENT.

16 (a) REPORT REQUIRED.—Not later than March 1,

17 1999, the Secretary of Defense shall submit to the Com18 mittee on Armed Services of the Senate and the Commit19 tee on National Security of the House of Representatives

20 a report on the inventory and control of the military equip21 ment of the Department of Defense as of the end of fiscal

22 year 1998. The report shall address the inventories of each

23 of the Army, Navy, Air Force, and Marine Corps sepa24 rately.
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1 (b) CONTENT.—The report shall include the follow2 ing:

3 (1) For each item of military equipment in the

4 inventory, stated by item nomenclature—

5 (A) the quantity of the item in the inven6 tory as of the beginning of the fiscal year;

7 (B) the quantity of acquisitions of the item

8 during the fiscal year;

9 (C) the quantity of disposals of the item

10 during the fiscal year;

11 (D) the quantity of losses of the item dur12 ing the performance of military missions during

13 the fiscal year; and

14 (E) the quantity of the item in the inven15 tory as of the end of the fiscal year.

16 (2) A reconciliation of the quantity of each item

17 in the inventory as of the beginning of the fiscal

18 year with the quantity of the item in the inventory

19 as of the end of fiscal year.

20 (3) For each item of military equipment that

21 cannot be reconciled—

22 (A) an explanation of why the quantities

23 cannot be reconciled; and
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1 (B) a discussion of the remedial actions

2 planned to be taken, including target dates for

3 accomplishing the remedial actions.

4 (4) Supporting schedules identifying the loca5 tion of each item that are available to Congress or

6 auditors of the Comptroller General upon request.

7 (c) MILITARY EQUIPMENT DEFINED.—For the pur8 poses of this section, the term ‘‘military equipment’’

9 means all equipment that is used in support of military

10 missions and is maintained on the visibility systems of the

11 Army, Navy, Air Force, or Marine Corps.

12 (d) INSPECTOR GENERAL REVIEW.—Not later than

13 June 1, 1999, the Inspector General of the Department

14 of Defense shall review the report submitted to the com15 mittees under subsection (a) and shall submit to the com16 mittees any comments that the Inspector General consid17 ers appropriate.

18 SEC. 1026. REPORT ON CONTINUITY OF ESSENTIAL OPER19 ATIONS AT RISK OF FAILURE BECAUSE OF

20 COMPUTER SYSTEMS THAT ARE NOT YEAR

21 2000 COMPLIANT.

22 (a) REPORT REQUIRED.—The Secretary of Defense

23 and the Director of Central Intelligence shall jointly sub24 mit to the Committee on Armed Services of the Senate

25 and the Committee on National Security of the House of
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1 Representatives a report on the plans of the Department

2 of Defense and the intelligence community for ensuring

3 the continuity of performance of essential operations that

4 are at risk of failure because of computer systems and

5 other information and support systems that are not year

6 2000 compliant.

7 (b) CONTENT.—The report shall contain, at a mini8 mum, the following:

9 (1) A prioritization of mission critical systems

10 to ensure that the most critical systems have the

11 highest priority for efforts to reprogram computers

12 to be year 2000 compliant.

13 (2) A discussion of the private and other public

14 information and support systems relied on by the

15 national security community, including the intel16 ligence community, and the efforts under way to en17 sure that those systems are year 2000 compliant.

18 (3) The efforts under way to repair the underly19 ing operating systems and infrastructure.

20 (4) The plans for comprehensive testing of De21 partment of Defense systems, including simulated

22 operational tests in mission areas.

23 (5) A comprehensive contingency plan, for the

24 entire national security community, which provides

25 for resolving emergencies resulting from a system
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1 that is not year 2000 compliant and includes provi2 sion for the creation of crisis action teams for use

3 in resolving such emergencies.

4 (6) A discussion of the efforts undertaken to

5 ensure the continued reliability of service on the sys6 tems used by the President and other leaders of the

7 United States for communicating with the leaders of

8 other nations.

9 (7) A discussion of the vulnerability of allied

10 armed forces to failure systems that are not, or have

11 critical components that are not, year 2000 compli12 ant, together with an assessment of the potential

13 problems for interoperability among the Armed

14 Forces of the United States and allied armed forces

15 because of the potential for failure of such systems.

16 (8) An estimate of the total cost of making the

17 computer systems and other information and sup18 port systems comprising the computer networks of

19 the Department of Defense and the intelligence com20 munity year 2000 compliant.

21 (c) SUBMITTAL.—The report shall be submitted not

22 later than March 31, 1999, in classified form and, as nec23 essary, unclassified form.

24 (d) YEAR 2000 COMPLIANT.—In this section, the

25 term ‘‘year 2000 compliant’’, with respect to a computer
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1 system or any other information or support system, means

2 that the programs of the system correctly recognize dates

3 in years after 1999 as being dates after 1999 for the pur4 poses of program functions for which the correct date is

5 relevant to the performance of the functions.

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

7 CAPABILITIES.

8 (a) NAVY REPORT.—(1) Not later than March 31,

9 1999, the Secretary of the Navy shall submit to the Com10 mittee on Armed Services of the Senate and the Commit11 tee on National Security of the House of Representatives

12 a report on battleship readiness for meeting requirements

13 of the Armed Forces for naval surface fire support.

14 (2) The report shall contain the following:

15 (A) The reasons for the Secretary’s failure to

16 comply with the requirements of section 1011 of the

17 National Defense Authorization Act for Fiscal Year

18 1996 (Public Law 104–106; 110 Stat. 421) until

19 February 1998.

20 (B) The requirements for Air-Naval Gunfire Li21 aison Companies.

22 (C) The plans of the Navy for retaining and

23 maintaining 16-inch ammunition for the main guns

24 of battleships.
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1 (D) The plans of the Navy for retaining the

2 hammerhead crane essential for lifting battleship

3 turrets.

4 (E) An estimate of the cost of reactivating

5 Iowa-class battleships for listing on the Naval Vessel

6 Register, restoring the vessels to seaworthiness with

7 operational capabilities necessary to meet require8 ments for naval surface fire-support, and maintain9 ing the battleships in that condition for continued

10 listing on the register, together with an estimate of

11 the time necessary to reactivate and restore the ves12 sels to that condition.

13 (3) The Secretary shall act through the Director of

14 Expeditionary Warfare Division (N85) of the Office of the

15 Chief of Naval Operations in preparing the report.

16 (b) GAO REPORT.—(1) The Comptroller General

17 shall submit to the Committee on Armed Services of the

18 Senate and the Committee on National Security of the

19 House of Representatives a report on the naval surface

20 fire-support capabilities of the Navy.

21 (2) The report shall contain the following:

22 (A) An assessment of the extent of the compli23 ance by the Secretary of the Navy with the require24 ments of section 1011 of the National Defense Au-
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1 thorization Act for Fiscal Year 1996 (Public Law

2 104–106; 110 Stat. 421).

3 (B) The plans of the Navy for executing the

4 naval surface fire-support mission of the Navy.

5 (C) An assessment of the short-term costs and

6 the long-term costs associated with the plans.

7 (D) An assessment of the short-term costs and

8 the long-term costs associated with alternative meth9 ods for executing the naval surface fire-support mis10 sion of the Navy, including the alternative of re11 activating two battleships.

12 SEC. 1028. REPORT ON ROLES IN DEPARTMENT OF DE13 FENSE AVIATION ACCIDENT INVESTIGA14 TIONS.

15 (a) REPORT REQUIRED.—Not later than March 31,

16 1999, the Secretary of Defense shall submit to Congress

17 a report on the roles of the Office of the Secretary of De18 fense and the Joint Staff in the investigation of Depart19 ment of Defense aviation accidents.

20 (b) CONTENT OF REPORT.—The report shall include

21 the following:

22 (1) An assessment of whether the Office of the

23 Secretary of Defense and the Joint Staff should

24 have more direct involvement in the investigation of

25 military aviation accidents.
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1 (2) The advisability of the Office of the Sec2 retary of Defense, the Joint Staff, or another De3 partment of Defense entity independent of the mili4 tary departments supervising the conduct of aviation

5 accident investigations.

6 (3) An assessment of the minimum training

7 and experience required for aviation accident inves8 tigation board presidents and board members.

9 SEC. 1029. STRATEGIC PLAN FOR EXPANDING DISTANCE

10 LEARNING INITIATIVES.

11 (a) PLAN REQUIRED.—The Secretary of Defense

12 shall develop a strategic plan for guiding and expanding

13 distance learning initiatives within the Department of De14 fense. The plan shall provide for an expansion of such ini15 tiatives over five consecutive fiscal years beginning with

16 fiscal year 2000.

17 (b) CONTENT OF PLAN.—The strategic plan shall, at

18 a minimum, contain the following:

19 (1) A statement of measurable goals and objec20 tives and outcome-related performance indicators

21 (consistent with section 1115 of title 31, United

22 States Code, relating to agency performance plans)

23 for the development and execution of distance learn24 ing initiatives throughout the Department of De25 fense.
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1 (2) A detailed description of how distance learn2 ing initiatives are to be developed and managed

3 within the Department of Defense.

4 (3) An assessment of the estimated costs and

5 the benefits associated with developing and main6 taining an appropriate infrastructure for distance

7 learning.

8 (4) A statement of planned expenditures for the

9 investments necessary to build and maintain the in10 frastructure.

11 (5) A description of the mechanisms that are to

12 be used to supervise the development and coordina13 tion of the distance learning initiatives of the De14 partment of Defense.

15 (c) RELATIONSHIP TO EXISTING INITIATIVE.—In de16 veloping the strategic plan, the Secretary may take into

17 account the ongoing collaborative effort among the De18 partment of Defense, other Federal agencies, and private

19 industry that is known as the Advanced Distribution

20 Learning initiative. However, the Secretary shall ensure

21 that the strategic plan is specifically focused on the train22 ing and education goals and objectives of the Department

23 of Defense.
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1 (d) SUBMISSION TO CONGRESS.—The Secretary of

2 Defense shall submit the strategic plan to Congress not

3 later than March 1, 1999.

4 SEC. 1030. REPORT ON INVOLVEMENT OF ARMED FORCES

5 IN CONTINGENCY AND ONGOING OPER6 ATIONS.

7 (a) REPORT REQUIRED.—Not later than January 31,

8 1999, the Secretary of Defense shall submit to the con9 gressional defense committees a report on the involvement

10 of the Armed Forces of the United States in major contin11 gency operations and major ongoing operations since the

12 end of the Persian Gulf War, including such operations

13 as the involvement in the Stabilization Force in Bosnia

14 and Herzegovina, Operation Southern Watch, and Oper15 ation Northern Watch. The report shall contain the follow16 ing:

17 (1) A discussion of the effects of that involve18 ment on retention and reenlistment of personnel in

19 the Armed Forces.

20 (2) The extent to which the use of combat sup21 port and combat service support personnel and

22 equipment of the Armed Forces in the operations

23 has resulted in shortages of Armed Forces personnel

24 and equipment in other regions of the world.
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1 (3) The accounts from which funds have been

2 drawn to pay for the operations and the specific pro3 grams for which the funds were available until di4 verted to pay for the operations.

5 (4) The vital interests of the United States that

6 are involved in each operation or, if none, the inter7 ests of the United States that are involved in each

8 operation and a characterization of those interests.

9 (5) What clear and distinct objectives guide the

10 activities of United States forces in each operation.

11 (6) What the President has identified on the

12 basis of those objectives as the date, or the set of

13 conditions, that defines the end of each operation.

14 (b) FORM OF REPORT.—The report shall be submit15 ted in unclassified form, but may also be submitted in a

16 classified form if necessary.

17 (c) MAJOR OPERATION DEFINED.—For the purposes

18 of this section, a contingency operation or an ongoing op19 eration is a major contingency operation or a major ongo20 ing operation, respectively, if the operation involves more

21 than 500 members of the Armed Forces.
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1 Subtitle D—Other Matters

2 SEC. 1041. COOPERATIVE COUNTERPROLIFERATION PRO3 GRAM.

4 (a) ASSISTANCE AUTHORIZED.—Subject to sub5 section (b), the Secretary of Defense may provide a foreign

6 country or any of its instrumentalities with assistance that

7 the Secretary determines necessary for destroying, remov8 ing, or obtaining from that country—

9 (1) weapons of mass destruction; or

10 (2) materials, equipment, or technology related

11 to the delivery or development of weapons of mass

12 destruction.

13 (b) CERTIFICATION REQUIRED.—(1) Not later than

14 15 days before providing assistance under subsection (a)

15 regarding weapons, materials, equipment, or technology

16 referred to in that subsection, the Secretary of Defense

17 shall certify to the congressional defense committees that

18 the weapons, materials, equipment, or technology meet

19 each of the following requirements:

20 (A) The weapons, materials, equipment, or

21 technology are at risk of being sold or otherwise

22 transferred to a restricted foreign state or entity.

23 (B) The transfer of the weapons, materials,

24 equipment, or technology would pose a significant

25 threat to national security interests of the United
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1 States or would significantly advance a foreign coun2 try’s weapon program that threatens national secu3 rity interests of the United States.

4 (C) Other options for securing or otherwise pre5 venting the transfer of the weapons, materials,

6 equipment, or technology have been considered and

7 rejected as ineffective or inadequate.

8 (2) The Secretary may waive the deadline for submit9 ting a certification required under paragraph (1) in any

10 case if the Secretary determines that compliance with the

11 requirement would compromise national security objec12 tives of the United States in that case. The Secretary shall

13 promptly notify the Chairman and ranking minority mem14 bers of the congressional defense committees regarding the

15 waiver and submit the certification not later than 45 days

16 after completing the action of providing the assistance in

17 the case.

18 (3) No assistance may be provided under subsection

19 (a) in any case unless the Secretary submits the certifi20 cation required under paragraph (1) or a notification re21 quired under paragraph (2) in such case.

22 (c) ANNUAL REPORTS.—(1) Not later than January

23 30 of each year, the Secretary of Defense shall submit

24 to the congressional defense committees a report on the
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1 activities carried out under this section. The first annual

2 report shall be submitted not later than January 30, 2000.

3 (2) Each annual report shall set forth in separate sec4 tions for the previous year the following:

5 (A) The assistance provided under this section

6 and the purposes for which provided.

7 (B) The sources of funds for the assistance pro8 vided.

9 (C) Any assistance provided for the Department

10 of Defense under this section by any other depart11 ment or agency of the Federal Government, together

12 with the source or sources of that assistance.

13 (D) Any other information that the Secretary

14 considers appropriate for informing the appropriate

15 congressional committees about actions taken under

16 this section.

17 (d) DEFINITIONS.—In this section:

18 (1) The term ‘‘restricted foreign state or en19 tity’’, with respect to weapons, materials, equipment,

20 or technology covered by a certification of the Sec21 retary of Defense under subsection (b), means—

22 (A) any foreign country the government of

23 which has repeatedly provided support for acts

24 of international terrorism, as determined by the

25 Secretary of State determines under section
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1 620A of the Foreign Assistance Act of 1961

2 (22 U.S.C. 2371); or

3 (B) any foreign state or entity that the

4 Secretary of Defense determines would con5 stitute a military threat to the territory of the

6 United States, national security interests of the

7 United States, or allies of the United States, if

8 that foreign state or entity were to possess the

9 weapons, materials, equipment, or technology.

10 (2) The term ‘‘weapon of mass destruction’’ has

11 the meaning given that term in section 1402 of the

12 Defense Against Weapons of Mass Destruction Act

13 of 1996 (50 U.S.C. 2302(1)).

14 SEC. 1042. EXTENSION OF COUNTERPROLIFERATION AU15 THORITIES FOR SUPPORT OF UNITED NA16 TIONS SPECIAL COMMISSION ON IRAQ.

17 Section 1505 of the Weapons of Mass Destruction

18 Control Act of 1992 (title XV of Public Law 102–484;

19 22 U.S.C. 5859a) is amended—

20 (1) in subsection (d)(3), by striking out ‘‘or

21 $15,000,000 for fiscal year 1998’’ and inserting in

22 lieu thereof ‘‘or $15,000,000 for each of fiscal years

23 1998 and 1999’’; and
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1 (2) in subsection (f), by striking out ‘‘fiscal

2 year 1998’’ and inserting in lieu thereof ‘‘fiscal year

3 1999’’.

4 SEC. 1043. ONE-YEAR EXTENSION OF LIMITATION ON RE5 TIREMENT OR DISMANTLEMENT OF STRATE6 GIC NUCLEAR DELIVERY SYSTEMS.

7 Section 1302 of the National Defense Authorization

8 Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.

9 1948) is amended—

10 (1) by striking out ‘‘during fiscal year 1998’’

11 each place it appears and inserting in lieu thereof

12 ‘‘during any fiscal year’’; and

13 (2) by adding at the end the following:

14 ‘‘(g) APPLICABILITY TO FISCAL YEARS 1998 and

15 1999.—This section applies to fiscal years 1998 and

16 1999.’’.

17 SEC. 1044. DIRECT-LINE COMMUNICATION BETWEEN

18 UNITED STATES AND RUSSIAN COMMANDERS

19 OF STRATEGIC FORCES.

20 (a) SENSE OF CONGRESS.—It is the sense of Con21 gress that a direct line of communication between the com22 manders in chief of the United States Strategic and Space

23 Commands and the Commander of the Russian Strategic

24 Rocket Forces could be a useful confidence-building tool.
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1 (b) REPORT.—Not later than two months after the

2 date of the enactment of this Act, the Secretary of Defense

3 shall submit to the Committee on Armed Services of the

4 Senate and to the Committee on National Security of the

5 House of Representatives a report on the feasibility of ini6 tiating discussions on direct-line communication described

7 in subsection (a).

8 SEC. 1045. CHEMICAL WARFARE DEFENSE.

9 (a) REVIEW AND MODIFICATION OF POLICIES AND

10 DOCTRINE.—The Secretary of Defense shall review the

11 policies and doctrines of the Department of Defense on

12 chemical warfare defense and modify the policies and doc13 trine as appropriate to achieve the objectives set forth in

14 subsection (b).

15 (b) OBJECTIVES.—The objectives for the modifica16 tion of policies and doctrines of the Department of De17 fense on chemical warfare defense are as follows:

18 (1) To provide for adequate protection of per19 sonnel from any low-level exposure to a chemical

20 warfare agent that would endanger the health of ex21 posed personnel because of the deleterious effects

22 of—

23 (A) a single exposure to the agent;
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1 (B) exposure to the agent concurrently

2 with other dangerous exposures, such as expo3 sures to—

4 (i) other potentially toxic substances

5 in the environment, including pesticides,

6 other insect and vermin control agents,

7 and environmental pollutants;

8 (ii) low-grade nuclear and electro9 magnetic radiation present in the environ10 ment;

11 (iii) preventive medications (that are

12 dangerous when taken concurrently with

13 other dangerous exposures referred to in

14 this paragraph); and

15 (iv) occupational hazards, including

16 battlefield hazards; and

17 (C) repeated exposures to the agent, or

18 some combination of one or more exposures to

19 the agent and other dangerous exposures re20 ferred to in subparagraph (B), over time.

21 (2) To provide for—

22 (A) the prevention of and protection

23 against, and the detection (including confirma24 tion) of, exposures to a chemical warfare agent

25 (whether intentional or inadvertent) at levels
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1 that, even if not sufficient to endanger health

2 immediately, are greater than the level that is

3 recognized under Department of Defense poli4 cies as being the maximum safe level of expo5 sure to that agent for the general population;

6 and

7 (B) the recording, reporting, coordinating,

8 and retaining of information on possible expo9 sures described in subparagraph (A), including

10 the monitoring of the health effects of expo11 sures on humans and animals, and the docu12 menting and reporting of those health effects

13 specifically by location.

14 (3) Provide solutions for the concerns and mis15 sion requirements that are specifically applicable for

16 one or more of the Armed Forces in a protracted

17 conflict when exposures to chemical agents could be

18 complex, dynamic, and occurring over an extended

19 period.

20 (c) RESEARCH PROGRAM.—The Secretary of Defense

21 shall develop and carry out a plan to establish a research

22 program for determining the effects of chronic and low23 dose exposures to chemical warfare agents. The research

24 shall be designed to yield results that can guide the Sec25 retary in the evolution of policy and doctrine on low-level
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1 exposures to chemical warfare agents. The plan shall state

2 the objectives and scope of the program and include a 5-

3 year funding plan.

4 (d) REPORT.—Not later than May 1, 1999, the Sec5 retary of Defense shall submit to the Committee on Armed

6 Services of the Senate and the Committee on National Se7 curity of the House of Representatives a report on the re8 sults of the review under subsection (a) and on the re9 search program developed under subsection (c). The re10 port shall include the following:

11 (1) Each modification of chemical warfare de12 fense policy and doctrine resulting from the review.

13 (2) Any recommended legislation regarding

14 chemical warfare defense.

15 (3) The plan for the research program.

16 SEC. 1046. ACCOUNTING TREATMENT OF ADVANCE PAY17 MENT OF PERSONNEL.

18 (a) TREATMENT.—Section 1006 of title 37, United

19 States Code, is amended by adding at the end the follow20 ing:

21 ‘‘(l) Notwithstanding any provision of chapter 15 of

22 title 31, an amount paid a member under this section in

23 advance of the fiscal year in which the member’s entitle24 ment to that amount accrues—
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1 ‘‘(1) shall be treated as being obligated and ex2 pended in that fiscal year; and

3 ‘‘(2) may not be treated as reducing the unobli4 gated balance of the appropriations available for

5 military personnel, Reserve personnel, or National

6 Guard personnel, as the case may be, for the fiscal

7 year in which paid.’’.

8 (b) APPLICABILITY.—Subsection (l) of section 1006

9 of title 37, United States Code (as added by subsection

10 (a)), shall apply to advance payments made under such

11 section in fiscal years beginning after September 30, 1997.

12 SEC. 1047. REINSTATEMENT OF DEFINITION OF FINANCIAL

13 INSTITUTION IN AUTHORITIES FOR REIM14 BURSING DEFENSE PERSONNEL FOR GOV15 ERNMENT ERRORS IN DIRECT DEPOSITS OF

16 PAY.

17 (a) MEMBERS OF THE ARMED FORCES.—Section

18 1053(d)(1) of title 10, United States Code, is amended

19 to read as follows:

20 ‘‘(1) The term ‘financial institution’ means a

21 bank, savings and loan association or similar institu22 tion, or a credit union chartered by the United

23 States Government or a State.’’.
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1 (b) CIVILIAN EMPLOYEES.—Section 1594(d)(1) of

2 title 10, United States Code, is amended to read as fol3 lows:

4 ‘‘(1) The term ‘financial institution’ means a

5 bank, savings and loan association or similar institu6 tion, or a credit union chartered by the United

7 States Government or a State.’’.

8 SEC. 1048. PILOT PROGRAM ON ALTERNATIVE NOTICE OF

9 RECEIPT OF LEGAL PROCESS FOR GARNISH10 MENT OF FEDERAL PAY FOR CHILD SUPPORT

11 AND ALIMONY.

12 (a) PROGRAM REQUIRED.—The Secretary of Defense

13 shall conduct a pilot program on alternative notice proce14 dures for withholding or garnishment of pay for the pay15 ment of child support and alimony under section 459 of

16 the Social Security Act (42 U.S.C. 659).

17 (b) PURPOSE.—The purpose of the pilot program is

18 to test the efficacy of providing notice in accordance with

19 subsection (c) to the person whose pay is to be withheld

20 or garnisheed.

21 (c) NOTICE REQUIREMENTS.—Under the pilot pro22 gram, if an agent designated under paragraph (1) of sec23 tion 459(c) of the Social Security Act for members of the

24 Armed Forces or employees of the Department of Defense

25 receives notice or service of a court order, notice to with-
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1 hold, or other legal process regarding a child support or

2 alimony obligation of such a member or employee, the

3 agent may omit from the notice that the agent sends to

4 the member or employee under paragraph (2)(A) of that

5 section the copy of the notice or service received by the

6 agent. The agent shall include in the notice, which shall

7 be in writing, the following:

8 (1) A description of the court order, notice to

9 withhold, or other legal process.

10 (2) The identity of the court, administrative

11 agency, or official that issued the order.

12 (3) The case number assigned by the court, ad13 ministrative agency, or official.

14 (4) The amount of the obligation.

15 (5) The name of each person for whom the sup16 port or alimony is provided.

17 (6) The name, address, and telephone number

18 of the person or office from which a copy of the no19 tice or service may be obtained.

20 (d) PERIOD OF PILOT PROGRAM.—The Secretary

21 shall commence the pilot program not later than 90 days

22 after the date of the enactment of this Act. The pilot pro23 gram shall terminate on September 30, 2000.
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1 (e) REPORT.—Not later than April 1, 2001, the Sec2 retary shall submit a report on the pilot program to Con3 gress. The report shall contain the following:

4 (1) The number of notices that were issued in

5 accordance with subsection (c) during the period of

6 the pilot program.

7 (2) The number of persons who requested cop8 ies of the notice or service of the court order, notice

9 of withholding, or other legal process involved.

10 (3) Any communication received by the Sec11 retary or an agent referred to in subsection (c) com12 plaining about not being furnished a copy of the no13 tice or service of the court order, notice of withhold14 ing, or other legal process with the agent’s notice.

15 SEC. 1049. COSTS PAYABLE TO THE DEPARTMENT OF DE16 FENSE AND OTHER FEDERAL AGENCIES FOR

17 SERVICES PROVIDED TO THE DEFENSE COM18 MISSARY AGENCY.

19 (a) LIMITATION.—Section 2482(b)(1) of title 10,

20 United States Code, is amended by adding at the end the

21 following: ‘‘However, the Defense Commissary Agency

22 may not pay for any such service any amount that exceeds

23 the price at which the service could be procured in full

24 and open competition (as such term is defined in section
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1 4(6) of the Office of Federal Procurement Policy Act (41

2 U.S.C. 403(6)).’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall take effect on the date of the enact5 ment of this Act and shall apply with respect to services

6 provided or obtained on or after that date.

7 SEC. 1050. COLLECTION OF DISHONORED CHECKS PRE8 SENTED AT COMMISSARY STORES.

9 Section 2486 of title 10, United States Code, is

10 amended by adding at the end the following:

11 ‘‘(g) COLLECTION OF DISHONORED CHECKS.—(1)

12 The Secretary of Defense may impose a charge for the

13 collection of a check accepted at a commissary store that

14 is not honored by the financial institution on which the

15 check is drawn. The imposition and amounts of charges

16 shall be consistent with practices of commercial grocery

17 stores regarding dishonored checks.

18 ‘‘(2)(A) The following persons are liable to the United

19 States for the amount of a check referred to in paragraph

20 (1) that is returned unpaid to the United States, together

21 with any charge imposed under that paragraph:

22 ‘‘(i) The person who presented the check.

23 ‘‘(ii) Any person whose status and relationship

24 to the person who presented the check provide the
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1 basis for that person’s eligibility to make purchases

2 at a commissary store.

3 ‘‘(B) Any amount for which a person is liable under

4 subparagraph (A) may be collected by deducting and with5 holding such amount from any amounts payable to that

6 person by the United States.

7 ‘‘(3) Amounts collected as charges imposed under

8 paragraph (1) shall be credited to the commissary trust

9 revolving fund.

10 ‘‘(4) Appropriated funds may be used to pay any

11 costs incurred in the collection of checks and charges re12 ferred to in paragraph (1). An appropriation account

13 charged a cost under the preceding sentence shall be reim14 bursed the amount of that cost out of funds in the com15 missary trust revolving fund.

16 ‘‘(5) In this subsection, the term ‘commissary trust

17 revolving fund’ means the trust revolving fund maintained

18 by the Department of Defense for surcharge collections

19 and proceeds of sales of commissary stores.’’.

20 SEC. 1051. DEFENSE COMMISSARY AGENCY TELECOMMUNI21 CATIONS.

22 (a) USE OF FTS 2000 / 2001.—The Secretary of De23 fense shall prescribe in regulations authority for the De24 fense Commissary Agency to meet its telecommunication

25 requirements by obtaining telecommunication services and
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1 related items under the FTS 2000 / 2001 contract through

2 a frame relay system procured for the agency.

3 (b) REPORT.—Upon the initiation of telecommuni4 cation service for the Defense Commissary Agency under

5 the FTS 2000 / 2001 contract through the frame relay sys6 tem, the Secretary of Defense shall submit to Congress

7 a notification that the service has been initiated.

8 (c) DEFINITION.—In this section, the term

9 ‘‘FTS 2000 / 2001 contract’’ means the contract for the

10 provision of telecommunication services for the Federal

11 Government that was entered into by the Defense Infor12 mation Technology Contract Organization.

13 SEC. 1052. RESEARCH GRANTS COMPETITIVELY AWARDED

14 TO SERVICE ACADEMIES.

15 (a) UNITED STATES MILITARY ACADEMY.—(1)

16 Chapter 403 of title 10, United States Code, is amended

17 by adding at the end the following new section:

18 ‘‘§ 4358. Research grants: acceptance, application,

19 and use

20 ‘‘(a) ACCEPTANCE OF COMPETITIVELY AWARDED

21 GRANTS.—The Superintendent of the Academy may ac22 cept a research grant that is awarded on a competitive

23 basis by a source referred to in subsection (b) for a re24 search project that is to be carried out by a professor or
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1 instructor of the Academy for a scientific, literary, or edu2 cational purpose.

3 ‘‘(b) APPLICATION FOR GRANTS.—A professor or in4 structor of the Academy, together with the Superintend5 ent, may apply for a research grant referred to in sub6 section (a) from any corporation, fund, foundation, edu7 cational institution, or similar entity that is organized and

8 operated primarily for scientific, literary, or educational

9 purposes.

10 ‘‘(c) ADMINISTRATION OF GRANT PROCEEDS.—The

11 Superintendent shall establish a special account for ad12 ministering the proceeds of a research grant accepted

13 under subsection (a) and shall use the account for the ad14 ministration of such proceeds in accordance with applica15 ble regulations and the terms and conditions of the grant.

16 ‘‘(d) RELATED EXPENSES.—Subject to such limita17 tions as may be provided in appropriations Acts, appro18 priations available for the Academy may be used to pay

19 expenses incurred by the Academy in pursuit of an award

20 of a research grant authorized to be accepted under sub21 section (a).

22 ‘‘(e) REGULATIONS.—The Secretary of the Army

23 shall prescribe in regulations the requirements, restric24 tions, and conditions that the Secretary considers appro-
236

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1 priate for the exercise and administration of the authority

2 under this section.’’.

3 (2) The table of sections at the beginning of such

4 chapter is amended by adding at the end the following

5 new item:

‘‘4358. Research grants: acceptance, application, and use.’’.

6 (b) UNITED STATES NAVAL ACADEMY.—(1) Chapter

7 603 of title 10, United States Code, is amended by adding

8 at the end the following new section:

9 ‘‘§ 6977. Research grants: acceptance, application,

10 and use

11 ‘‘(a) ACCEPTANCE OF COMPETITIVELY AWARDED

12 GRANTS.—The Superintendent of the Academy may ac13 cept a research grant that is awarded on a competitive

14 basis by a source referred to in subsection (b) for a re15 search project that is to be carried out by a professor or

16 instructor of the Academy for a scientific, literary, or edu17 cational purpose.

18 ‘‘(b) APPLICATION FOR GRANTS.—A professor or in19 structor of the Academy, together with the Superintend20 ent, may apply for a research grant referred to in sub21 section (a) from any corporation, fund, foundation, edu22 cational institution, or similar entity that is organized and

23 operated primarily for scientific, literary, or educational

24 purposes.
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1 ‘‘(c) ADMINISTRATION OF GRANT PROCEEDS.—The

2 Superintendent shall establish a special account for ad3 ministering the proceeds of a research grant accepted

4 under subsection (a) and shall use the account for the ad5 ministration of such proceeds in accordance with applica6 ble regulations and the terms and conditions of the grant.

7 ‘‘(d) RELATED EXPENSES.—Subject to such limita8 tions as may be provided in appropriations Acts, appro9 priations available for the Academy may be used to pay

10 expenses incurred by the Academy in pursuit of an award

11 of a research grant authorized to be accepted under sub12 section (a).

13 ‘‘(e) REGULATIONS.—The Secretary of the Navy

14 shall prescribe in regulations the requirements, restric15 tions, and conditions that the Secretary considers appro16 priate for the exercise and administration of the authority

17 under this section.’’.

18 (2) The table of sections at the beginning of such

19 chapter is amended by adding at the end the following

20 new item:

‘‘6977. Research grants: acceptance, application, and use.’’.

21 (c) UNITED STATES AIR FORCE ACADEMY.—(1)

22 Chapter 903 of title 10, United States Code, is amended

23 by adding at the end the following new section:
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1 ‘‘§ 9357. Research grants: acceptance, application,

2 and use

3 ‘‘(a) ACCEPTANCE OF COMPETITIVELY AWARDED

4 GRANTS.—The Superintendent of the Academy may ac5 cept a research grant that is awarded on a competitive

6 basis by a source referred to in subsection (b) for a re7 search project that is to be carried out by a professor or

8 instructor of the Academy for a scientific, literary, or edu9 cational purpose.

10 ‘‘(b) APPLICATION FOR GRANTS.—A professor or in11 structor of the Academy, together with the Superintend12 ent, may apply for a research grant referred to in sub13 section (a) from any corporation, fund, foundation, edu14 cational institution, or similar entity that is organized and

15 operated primarily for scientific, literary, or educational

16 purposes.

17 ‘‘(c) ADMINISTRATION OF GRANT PROCEEDS.—The

18 Superintendent shall establish a special account for ad19 ministering the proceeds of a research grant accepted

20 under subsection (a) and shall use the account for the ad21 ministration of such proceeds in accordance with applica22 ble regulations and the terms and conditions of the grant.

23 ‘‘(d) RELATED EXPENSES.—Subject to such limita24 tions as may be provided in appropriations Acts, appro25 priations available for the Academy may be used to pay

26 expenses incurred by the Academy in pursuit of an award
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1 of a research grant authorized to be accepted under sub2 section (a).

3 ‘‘(e) REGULATIONS.—The Secretary of the Air Force

4 shall prescribe in regulations the requirements, restric5 tions, and conditions that the Secretary considers appro6 priate for the exercise and administration of the authority

7 under this section.’’.

8 (2) The table of sections at the beginning of such

9 chapter is amended by adding at the end the following

10 new item:

‘‘9357. Research grants: acceptance, application, and use.’’.

11 SEC. 1053. CLARIFICATION AND SIMPLIFICATION OF RE12 SPONSIBILITIES OF INSPECTORS GENERAL

13 REGARDING WHISTLEBLOWER PROTEC14 TIONS.

15 (a) ROLES OF INSPECTORS GENERAL OF THE ARMED

16 FORCES.—(1) Subsection (c) of section 1034 of title 10,

17 United States Code, is amended—

18 (A) by striking out paragraph (1) and inserting

19 in lieu thereof the following:

20 ‘‘(1) If a member of the armed forces submits to an

21 Inspector General an allegation that a personnel action

22 prohibited by subsection (b) has been taken (or threat23 ened) against the member with respect to a communica24 tion described in paragraph (2), the Inspector General of

25 the Department of Defense or the Inspector General of
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1 the armed force concerned shall take the action required

2 under paragraph (3).’’; and

3 (B) by striking out paragraph (3) and inserting

4 in lieu thereof the following:

5 ‘‘(3) The Inspector General receiving an allegation as

6 described in paragraph (1) shall expeditiously determine

7 whether there is sufficient evidence to warrant an inves8 tigation of the allegation. Upon determining that an inves9 tigation is warranted, the Inspector General shall expedi10 tiously investigate the allegation. In the case of an allega11 tion received by the Inspector General of the Department

12 of Defense, the Inspector General may delegate that duty

13 to the Inspector General of the armed force concerned.

14 Neither an initial determination nor an investigation is re15 quired under this paragraph in the case of an allegation

16 made more than 60 days after the date on which the mem17 ber becomes aware of the personnel action that is the sub18 ject of the allegation.

19 ‘‘(4) If an Inspector General within a military depart20 ment receives an allegation covered by this subsection,

21 that Inspector General shall promptly notify the Inspector

22 General of the Department of Defense of the allegation

23 in accordance with regulations prescribed under sub24 section (h).
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1 ‘‘(5) The Inspector General of the Department of De2 fense, or the Inspector General of the Department of

3 Transportation (in the case of a member of the Coast

4 Guard when the Coast Guard is not operating as a service

5 in the Navy), shall ensure that the inspector general con6 ducting the investigation of an allegation under this para7 graph is outside the immediate chain of command of both

8 the member submitting the allegation and the individual

9 or individuals alleged to have taken the retaliatory ac10 tion.’’.

11 (2) Subsection (d) of such section is amended—

12 (A) by striking out ‘‘the Inspector General shall

13 conduct’’ and inserting in lieu thereof ‘‘an Inspector

14 General shall conduct’’; and

15 (B) by adding at the end the following: ‘‘In the

16 case of an allegation received by the Inspector Gen17 eral of the Department of Defense, the Inspector

18 General may delegate that duty to the Inspector

19 General of the armed force concerned.’’.

20 (b) MISMANAGEMENT COVERED BY PROTECTED

21 COMMUNICATIONS.—Subsection (c)(2)(B) of such section

22 is amended by striking out ‘‘Mismanagement’’ and insert23 ing in lieu thereof ‘‘Gross mismanagement’’.
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1 (c) SIMPLIFIED REPORTING AND NOTICE REQUIRE2 MENTS.—(1) Paragraph (1) of subsection (e) of such sec3 tion is amended—

4 (A) by striking out ‘‘the Inspector General shall

5 submit a report on’’ and inserting in lieu thereof

6 ‘‘the Inspector General conducting the investigation

7 shall provide’’; and

8 (B) inserting ‘‘shall transmit a copy of the re9 port on the results of the investigation to’’ before

10 ‘‘the member of the armed forces’’.

11 (2) Paragraph (2) of such subsection is amended by

12 adding at the end the following: ‘‘However, the copy need

13 not include summaries of interviews conducted, nor any

14 document acquired, during the course of the investigation.

15 Such items shall be transmitted to the member if the

16 member requests the items, whether before or after the

17 copy of the report is transmitted to the member.’’.

18 (3) Paragraph (3) of such subsection is amended by

19 striking out ‘‘90 days’’ and inserting in lieu thereof ‘‘120

20 days’’.

21 (d) REPEAL OF POST-INVESTIGATION INTERVIEW

22 REQUIREMENT.—Subsection (h) of such section is re23 pealed.

24 (e) INSPECTOR GENERAL DEFINED.—Subsection

25 (j)(2) of such section is amended—
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1 (1) by redesignating subparagraph (B) as sub2 paragraph (G) and, in that subparagraph, by strik3 ing out ‘‘an officer’’ and inserting in lieu thereof

4 ‘‘An officer’’;

5 (2) by striking out subparagraph (A) and in6 serting in lieu thereof the following:

7 ‘‘(A) The Inspector General of the Depart8 ment of Defense.

9 ‘‘(B) The Inspector General of the Depart10 ment of Transportation, in the case of a mem11 ber of the Coast Guard when the Coast Guard

12 is not operating as a service in the Navy.

13 ‘‘(C) The Inspector General of the Army,

14 in the case of a member of the Army.

15 ‘‘(D) The Naval Inspector General, in the

16 case of a member of the Navy.

17 ‘‘(E) The Inspector General of the Air

18 Force, in the case of a member of the Air

19 Force.

20 ‘‘(F) The Deputy Naval Inspector General

21 for Marine Corps Matters, in the case of a

22 member of the Marine Corps.’’; and

23 (3) in the matter preceding subparagraph (A),

24 by striking out ‘‘means—’’ and inserting in lieu

25 thereof ‘‘means the following:’’.
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1 (f) TECHNICAL AND CONFORMING AMENDMENTS.—

2 (1) Subsections (i) and (j) of such section are redesignated

3 as subsections (h) and (i), respectively.

4 (2) Subsection (b)(1)(B)(ii) of such section is amend5 ed by striking out ‘‘subsection (j))’’ and inserting in lieu

6 thereof ‘‘subsection (i)) or any other Inspector General ap7 pointed under the Inspector General Act of 1978’’.

8 SEC. 1054. AMOUNTS RECOVERED FROM CLAIMS AGAINST

9 THIRD PARTIES FOR LOSS OR DAMAGE TO

10 PERSONAL PROPERTY SHIPPED OR STORED

11 AT GOVERNMENT EXPENSE.

12 (a) IN GENERAL.—Chapter 163 of title 10, United

13 States Code, is amended by adding at the end the follow14 ing new section:

15 ‘‘§ 2739. Amounts recovered from claims against third

16 parties for loss or damage to personal

17 property shipped or stored at Govern18 ment expense

19 ‘‘(a) CREDITING OF COLLECTIONS.—Amounts col20 lected as described in subsection (b) by or for a military

21 department in any fiscal year shall be credited to the ap22 propriation that is available for that fiscal year for the

23 military department for the payment of claims for loss or

24 damage of personal property shipped or stored at Govern25 ment expense. Amounts so credited shall be merged with
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1 the funds in the appropriation and shall be available for

2 the same period and purposes as the funds with which

3 merged.

4 ‘‘(b) COLLECTIONS COVERED.—An amount author5 ized for crediting in accordance with subsection (a) is any

6 amount that a military department collects under sections

7 3711, 3716, 3717 and 3721 of title 31 from a third party

8 for a loss or damage to personal property that occurred

9 during shipment or storage of the property at Government

10 expense and for which the Secretary of the military de11 partment paid the owner in settlement of a claim.’’.

12 (b) CLERICAL AMENDMENT.—The table of sections

13 at the beginning of such chapter is amended by adding

14 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.’’.

15 SEC. 1055. ELIGIBILITY FOR ATTENDANCE AT DEPART16 MENT OF DEFENSE DOMESTIC DEPENDENT

17 ELEMENTARY AND SECONDARY SCHOOLS.

18 (a) MILITARY DEPENDENTS.—Subsection (a) of sec19 tion 2164 of title 10, United States Code, is amended—

20 (1) by designating the first sentence as para21 graph (1);

22 (2) by designating the second sentence as para23 graph (2); and
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1 (3) by adding at the end of paragraph (2), as

2 so designated, the following: ‘‘The Secretary may

3 also permit a dependent of a member of the armed

4 forces to enroll in such a program if the dependent

5 is residing in such a jurisdiction, whether on or off

6 a military installation, while the member is assigned

7 away from that jurisdiction on a remote or unaccom8 panied assignment under permanent change of sta9 tion orders.’’.

10 (b) EMPLOYEE DEPENDENTS.—Subsection (c)(2) of

11 such section is amended by striking out subparagraph (B)

12 and inserting in lieu thereof the following:

13 ‘‘(B) The Secretary may extend the enrollment of a

14 dependent referred to in subparagraph (A) in the program

15 for more than five consecutive school years if the Secretary

16 determines that the dependent is eligible under paragraph

17 (1), space is available in the program, and adequate ar18 rangements are made for reimbursement of the Secretary

19 for the costs to the Secretary of the educational services

20 provided for the dependent. An extension shall be for only

21 one school year, but the Secretary may authorize a succes22 sive extension each year for the next school year upon

23 making the determinations required under the preceding

24 sentence for that next school year.’’.
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1 SEC. 1056. FEES FOR PROVIDING HISTORICAL INFORMA2 TION TO THE PUBLIC.

3 (a) ARMY.—(1) Chapter 437 of title 10, United

4 States Code, is amended by adding at the end the follow5 ing:

6 ‘‘§ 4595. Army Military History Institute: fee for pro7 viding historical information to the pub8 lic

9 ‘‘(a) AUTHORITY.—Except as provided in subsection

10 (b), the Secretary of the Army may charge a person a fee

11 for providing the person with information requested by the

12 person that is provided from the United States Army Mili13 tary History Institute.

14 ‘‘(b) EXCEPTIONS.—A fee may not be charged under

15 this section—

16 ‘‘(1) to a person for information that the person

17 requests to carry out a duty as a member of the

18 armed forces or an officer or employee of the United

19 States; or

20 ‘‘(2) for a release of information under section

21 552 of title 5.

22 ‘‘(c) LIMITATION ON AMOUNT OF FEE.—The amount

23 of the fee charged under this section for providing infor24 mation may not exceed the cost of providing the informa25 tion.
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1 ‘‘(d) RETENTION OF FEES.—Amounts received under

2 subsection (a) for providing information in any fiscal year

3 shall be credited to the appropriation or appropriations

4 charged the costs of providing information to the public

5 from the United States Army Military History Institute

6 during that fiscal year.

7 ‘‘(e) DEFINITIONS.—In this section:

8 ‘‘(1) The term ‘United States Army Military

9 History Institute’ means the archive for historical

10 records and materials of the Army that the Sec11 retary of the Army designates as the primary ar12 chive for such records and materials.

13 ‘‘(2) The terms ‘officer of the United States’

14 and ‘employee of the United States’ have the mean15 ings given those terms in sections 2104 and 2105,

16 respectively, of title 5.’’.

17 (2) The table of sections at the beginning of such

18 chapter is amended by adding at the end the following:

‘‘4595. Army Military History Institute: fee for providing historical information

to the public.’’.

19 (b) NAVY.—(1) Chapter 649 of such title 10 is

20 amended by adding at the end the following new section:
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1 ‘‘§ 7582. Naval and Marine Corps Historical Centers:

2 fee for providing historical information

3 to the public

4 ‘‘(a) AUTHORITY.—Except as provided in subsection

5 (b), the Secretary of the Navy may charge a person a fee

6 for providing the person with information requested by the

7 person that is provided from the United States Naval His8 torical Center or the Marine Corps Historical Center.

9 ‘‘(b) EXCEPTIONS.—A fee may not be charged under

10 this section—

11 ‘‘(1) to a person for information that the person

12 requests to carry out a duty as a member of the

13 armed forces or an officer or employee of the United

14 States; or

15 ‘‘(2) for a release of information under section

16 552 of title 5.

17 ‘‘(c) LIMITATION ON AMOUNT OF FEE.—The amount

18 of the fee charged under this section for providing infor19 mation may not exceed the cost of providing the informa20 tion.

21 ‘‘(d) RETENTION OF FEES.—Amounts received under

22 subsection (a) for providing information from the United

23 States Naval Historical Center or the Marine Corps His24 torical Center in any fiscal year shall be credited to the

25 appropriation or appropriations charged the costs of pro-
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1 viding information to the public from that historical center

2 during that fiscal year.

3 ‘‘(e) DEFINITIONS.—In this section:

4 ‘‘(1) The term ‘United States Naval Historical

5 Center’ means the archive for historical records and

6 materials of the Navy that the Secretary of the Navy

7 designates as the primary archive for such records

8 and materials.

9 ‘‘(2) The term ‘Marine Corps Historical Center’

10 means the archive for historical records and mate11 rials of the Marine Corps that the Secretary of the

12 Navy designates as the primary archive for such

13 records and materials.

14 ‘‘(3) The terms ‘officer of the United States’

15 and ‘employee of the United States’ have the mean16 ings given those terms in sections 2104 and 2105,

17 respectively, of title 5.’’.

18 (2) The heading of such chapter is amended by strik19 ing out ‘‘RELATED’’.

20 (3)(A) The table of sections at the beginning of such

21 chapter is amended by adding at the end the following

22 new item:

‘‘7582. Naval and Marine Corps Historical Centers: fee for providing historical

information to the public.’’.

23 (B) The item relating to such chapter in the tables

24 of chapters at the beginning of subtitle C of title 10,
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1 United States Code, and the beginning of part IV of such

2 subtitle is amended by striking out ‘‘Related’’.

3 (c) AIR FORCE.—(1) Chapter 937 of title 10, United

4 States Code, is amended by adding at the end the follow5 ing new section:

6 ‘‘§ 9594. Air Force Military History Institute: fee for

7 providing historical information to the

8 public

9 ‘‘(a) AUTHORITY.—Except as provided in subsection

10 (b), the Secretary of the Air Force may charge a person

11 a fee for providing the person with information requested

12 by the person that is provided from the United States Air

13 Force Military History Institute.

14 ‘‘(b) EXCEPTIONS.—A fee may not be charged under

15 this section—

16 ‘‘(1) to a person for information that the person

17 requests to carry out a duty as a member of the

18 armed forces or an officer or employee of the United

19 States; or

20 ‘‘(2) for a release of information under section

21 552 of title 5.

22 ‘‘(c) LIMITATION ON AMOUNT OF FEE.—The amount

23 of the fee charged under this section for providing infor24 mation may not exceed the cost of providing the informa25 tion.
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1 ‘‘(d) RETENTION OF FEES.—Amounts received under

2 subsection (a) for providing information in any fiscal year

3 shall be credited to the appropriation or appropriations

4 charged the costs of providing information to the public

5 from the United States Air Force Military History Insti6 tute during that fiscal year.

7 ‘‘(e) DEFINITIONS.—In this section:

8 ‘‘(1) The term ‘United States Air Force Mili9 tary History Institute’ means the archive for histori10 cal records and materials of the Air Force that the

11 Secretary of the Air Force designates as the primary

12 archive for such records and materials.

13 ‘‘(2) The terms ‘officer of the United States’

14 and ‘employee of the United States’ have the mean15 ings given those terms in sections 2104 and 2105,

16 respectively, of title 5.’’.

17 (2) The table of sections at the beginning of such

18 chapter 937 is amended by adding at the end the following

19 new item:

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

20 SEC. 1057. PERIODIC INSPECTION OF THE ARMED FORCES

21 RETIREMENT HOME.

22 (a) INSPECTION BY INSPECTORS GENERAL OF THE

23 ARMED FORCES.—Section 1518 of the Armed Forces Re-
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1 tirement Home Act of 1991 (24 U.S.C. 418) is amended

2 to read as follows:

3 ‘‘SEC. 1518. INSPECTION OF RETIREMENT HOME.

4 ‘‘(a) TRIENNIAL INSPECTION.—Every three years the

5 Inspector General of an armed force shall inspect the Re6 tirement Home, including the records of the Retirement

7 Home.

8 ‘‘(b) ALTERNATING DUTY AMONG INSPECTORS GEN9 ERAL.—The duty to inspect the Retirement Home shall

10 alternate among the Inspector General of the Army, the

11 Naval Inspector General, and the Inspector General of the

12 Air Force on such schedule as the Secretary of Defense

13 shall direct.

14 ‘‘(c) REPORTS.—Not later than 45 days after com15 pleting an inspection under subsection (a), the Inspector

16 General carrying out the inspection shall submit to the

17 Retirement Home Board, the Secretary of Defense, and

18 Congress a report describing the results of the inspection

19 and containing such recommendations as the Inspector

20 General considers appropriate.’’.

21 (b) FIRST INSPECTION.—The first inspection under

22 section 1518 of the Armed Forces Retirement Home Act

23 of 1991, as amended by subsection (a), shall be carried

24 out during fiscal year 1999.
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1 SEC. 1058. TRANSFER OF F–4 PHANTOM II AIRCRAFT TO

2 FOUNDATION.

3 (a) AUTHORITY.—The Secretary of the Air Force

4 may convey, without consideration to the Collings Founda5 tion, Stow, Massachusetts (in this section referred to as

6 the ‘‘foundation’’), all right, title, and interest of the

7 United States in and to one surplus F–4 Phantom II air8 craft. The conveyance shall be made by means of a condi9 tional deed of gift.

10 (b) CONDITION OF AIRCRAFT.—The Secretary may

11 not convey ownership of the aircraft under subsection (a)

12 until the Secretary determines that the foundation has al13 tered the aircraft in such manner as the Secretary deter14 mines necessary to ensure that the aircraft does not have

15 any capability for use as a platform for launching or re16 leasing munitions or any other combat capability that it

17 was designed to have. The Secretary is not required to

18 repair or alter the condition of the aircraft before convey19 ing ownership of the aircraft.

20 (c) REVERTER UPON BREACH OF CONDITIONS.—

21 The Secretary shall include in the instrument of convey22 ance of the aircraft—

23 (1) a condition that the foundation not convey

24 any ownership interest in, or transfer possession of,

25 the aircraft to any other party without the prior ap26 proval of the Secretary of the Air Force;
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1 (2) a condition that the operation and mainte2 nance of the aircraft comply with all applicable limi3 tations and maintenance requirements imposed by

4 the Administrator of the Federal Aviation Adminis5 tration; and

6 (3) a condition that if the Secretary of the Air

7 Force determines at any time that the foundation

8 has conveyed an ownership interest in, or trans9 ferred possession of, the aircraft to any other party

10 without the prior approval of the Secretary, or has

11 failed to comply with the condition set forth in para12 graph (2), all right, title, and interest in and to the

13 aircraft, including any repair or alteration of the air14 craft, shall revert to the United States, and the

15 United States shall have the right of immediate pos16 session of the aircraft.

17 (d) CONVEYANCE AT NO COST TO THE UNITED

18 STATES.—The conveyance of an aircraft authorized by

19 this section shall be made at no cost to the United States.

20 Any costs associated with such conveyance, costs of deter21 mining compliance with subsection (b), and costs of oper22 ation and maintenance of the aircraft conveyed shall be

23 borne by the foundation.

24 (e) ADDITIONAL TERMS AND CONDITIONS.—The

25 Secretary of the Air Force may require such additional
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1 terms and conditions in connection with the conveyance

2 under this section as the Secretary considers appropriate

3 to protect the interests of the United States.

4 (f) CLARIFICATION OF LIABILITY.—Notwithstanding

5 any other provision of law, upon the conveyance of owner6 ship of the F–4 Phantom II aircraft to the foundation

7 under subsection (a), the United States shall not be liable

8 for any death, injury, loss, or damage that results from

9 any use of that aircraft by any person other than the

10 United States.

11 SEC. 1059. ACT CONSTITUTING PRESIDENTIAL APPROVAL

12 OF VESSEL WAR RISK INSURANCE RE13 QUESTED BY THE SECRETARY OF DEFENSE.

14 Section 1205(b) of the Merchant Marine Act of 1936

15 (46 U.S.C. App. 1285(b)) is amended by adding at the

16 end the following: ‘‘The signature of the President (or of

17 an official designated by the President) on the agreement

18 shall be treated as an expression of the approval required

19 under section 1202(a) to provide the insurance.’’.

20 SEC. 1060. COMMENDATION AND MEMORIALIZATION OF

21 THE UNITED STATES NAVY ASIATIC FLEET.

22 (a) FINDINGS.—Congress makes the following find23 ings:
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1 (1) The United States established the Asiatic

2 Fleet of the Navy in 1910 to protect American na3 tionals, policies, and possessions in the Far East.

4 (2) The sailors and Marines of the Asiatic Fleet

5 ensured the safety of United States citizens and for6 eign nationals, and provided humanitarian assist7 ance, in that region during the Chinese civil war, the

8 Yangtze Flood of 1931, and the outbreak of Sino9 Japanese hostilities.

10 (3) In 1940, due to deteriorating political rela11 tions and increasing tensions between the United

12 States and Japan, a reinforced Asiatic Fleet began

13 concentrating on the defense of the Philippines and

14 engaged in extensive training to ensure maximum

15 operational readiness for any eventuality.

16 (4) Following the declaration of war against

17 Japan, the warships, submarines, and aircraft of the

18 Asiatic Fleet singly or in task forces courageously

19 fought many naval battles against a superior Japa20 nese armada.

21 (5) The Asiatic Fleet directly suffered the loss

22 of 22 ships, 1,826 men killed or missing in action,

23 and 518 men captured and imprisoned under the

24 worst of conditions with many of them dying while

25 held as prisoners of war.
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1 (b) COMMENDATION.—Congress—

2 (1) commends the personnel who served in the

3 Asiatic Fleet of the United States Navy during the

4 period 1910 to 1942; and

5 (2) honors those who gave their lives in the line

6 of duty while serving in the Asiatic Fleet.

7 (c) UNITED STATES NAVY ASIATIC FLEET MEMO8 RIAL DAY.—The President is authorized and requested to

9 issue a proclamation designating March 1, 1999 as

10 ‘‘United States Navy Asiatic Fleet Memorial Day’’ and

11 calling upon the people of the United States to observe

12 United States Navy Asiatic Fleet Memorial Day with ap13 propriate programs, ceremonies, and activities.

14 SEC. 1061. PROGRAM TO COMMEMORATE 50TH ANNIVER15 SARY OF THE KOREAN WAR.

16 (a) REFERENCE TO KOREAN WAR.—Section 1083 of

17 the National Defense Authorization Act for Fiscal Year

18 1998 (Public Law 105–85; 111 Stat. 1918; 10 U.S.C. 113

19 note) is amended—

20 (1) in the section heading, by striking out ‘‘KO21 REAN CONFLICT’’ and inserting in lieu thereof

22 ‘‘KOREAN WAR’’;

23 (2) by striking out ‘‘Korean conflict’’ each place

24 it appears and inserting in lieu thereof ‘‘Korean

25 War’’; and
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1 (3) in subsections (c) and (d)(1), by striking

2 out ‘‘Korean Conflict’’ and inserting in lieu thereof

3 ‘‘Korean War’’.

4 (b) LIMITATION ON EXPENDITURES.—Subsection (f)

5 of such section is amended to read as follows:

6 ‘‘(f) LIMITATION ON EXPENDITURES.—The total

7 amount expended for the commemorative program for fis8 cal years 1998 through 2004 by the Department of De9 fense 50th Anniversary of the Korean War Commemora10 tive Committee established by the Secretary of Defense

11 may not exceed $10,000,000.’’.

12 SEC. 1062. DEPARTMENT OF DEFENSE USE OF FREQUENCY

13 SPECTRUM.

14 (a) FINDING.—Congress finds that the report sub15 mitted to Congress by the Secretary of Defense on April

16 2, 1998, regarding the reallocation of the frequency spec17 trum used or dedicated to the Department of Defense and

18 the intelligence community, does not include a discussion

19 of the costs to the Department of Defense that are associ20 ated with past and potential future reallocations of the

21 frequency spectrum, although such a discussion was to be

22 included in the report as directed in connection with the

23 enactment of the National Defense Authorization Act for

24 Fiscal Year 1998.
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1 (b) ADDITIONAL REPORT.—The Secretary of Defense

2 shall, not later than October 31, 1998, submit to the Com3 mittee on Armed Services of the Senate and the Commit4 tee on National Security of the House of Representatives

5 a report that discusses the costs referred to in subsection

6 (a).

7 (c) RELOCATION OF FEDERAL FREQUENCIES.—Sec8 tion 113(g)(1) of the National Telecommunications and

9 Information Administration Organization Act (47 U.S.C.

10 923(g)(1)) is amended—

11 (1) by striking out ‘‘(1) IN GENERAL.—In

12 order’’ and inserting in lieu thereof the following:

13 ‘‘(1) IN GENERAL.—

14 ‘‘(A) AUTHORITY OF FEDERAL ENTITIES

15 TO ACCEPT COMPENSATION.—In order’’;

16 (2) in subparagraph (A), as so designated, by

17 striking out the second, third and fourth sentences;

18 and

19 (3) by adding at the end the following:

20 ‘‘(B) REQUIREMENT TO COMPENSATE FED21 ERAL ENTITIES.—Any person on whose behalf a

22 Federal entity incurs costs under subparagraph

23 (A) shall compensate the Federal entity in ad24 vance for such costs. Such compensation may
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1 take the form of a cash payment or in-kind

2 compensation.

3 ‘‘(C) DISPOSITION OF PAYMENTS.—

4 ‘‘(i) PAYMENT BY ELECTRONIC FUNDS

5 TRANSFER.—A person making a cash pay6 ment under this paragraph shall make the

7 cash payment by depositing the amount of

8 the payment by electronic funds transfer in

9 the account of the Federal entity con10 cerned in the Treasury of the United

11 States or in another account as authorized

12 by law.

13 ‘‘(ii) AVAILABILITY.—Subject to the

14 provisions of authorization Acts and appro15 priations Acts, amounts deposited under

16 this subparagraph shall be available to the

17 Federal entity concerned to pay directly

18 the costs of relocation under this para19 graph, to repay or make advances to ap20 propriations or funds which do or will ini21 tially bear all or part of such costs, or to

22 refund excess sums when necessary.

23 ‘‘(D) APPLICATION TO CERTAIN OTHER

24 RELOCATIONS.—The provisions of this para25 graph also apply to any Federal entity that op-
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1 erates a Federal Government station assigned

2 to used electromagnetic spectrum identified for

3 reallocation under subsection (a) if before Au4 gust 5, 1997, the Commission has not identified

5 that spectrum for service or assigned licenses or

6 otherwise authorized service for that spec7 trum.’’.

8 SEC. 1063. TECHNICAL AND CLERICAL AMENDMENTS.

9 (a) TITLE 10, UNITED STATES CODE.—Title 10,

10 United States Code, is amended as follows:

11 (1) The item relating to section 484 in the table

12 of sections at the beginning of chapter 23 is amend13 ed to read as follows:

‘‘484. Annual report on aircraft inventory.’’.

14 (2) Section 517(a) is amended by striking out

15 ‘‘Except as provided in section 307 of title 37, the’’

16 and inserting in lieu thereof ‘‘The’’.

17 (3) The item relating to section 2302c in the

18 table of sections at the beginning of chapter 137 is

19 amended to read as follows:

‘‘2302c. Implementation of electronic commerce capability.’’.

20 (4) The table of subchapters at the beginning

21 of chapter 148 is amended by striking out ‘‘2491’’

22 in the item relating to subchapter I and inserting in

23 lieu thereof ‘‘2500’’.
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1 (5) Section 7045(c) is amended by striking out

2 ‘‘the’’ after ‘‘are subject to’’.

3 (6) Section 7572(b) is repealed.

4 (7) Section 12683(b)(2) is amended by striking

5 out ‘‘; or’’ at the end and inserting in lieu thereof

6 a period.

7 (b) PUBLIC LAW 105–85.—Effective as of November

8 18, 1997, and as if included therein as enacted, the Na9 tional Defense Authorization Act for Fiscal Year 1998

10 (Public Law 105–85) is amended as follows:

11 (1) Section 1006(a) (111 Stat. 1869) is amend12 ed by striking out ‘‘or’’ in the quoted matter and in13 serting in lieu thereof ‘‘and’’.

14 (2) Section 3133(b)(3) (111 Stat. 2036) is

15 amended by striking out ‘‘III’’ and inserting in lieu

16 thereof ‘‘XIV’’.

17 (c) OTHER ACTS.—

18 (1) Section 18(c)(1) of the Office of Federal

19 Procurement Policy Act (41 U.S.C. 416(c)(1)) is

20 amended by striking out the period at the end of

21 subparagraph (A) and inserting in lieu thereof a

22 semicolon.

23 (2) Section 3(c)(2) of Public Law 101–533 (22

24 U.S.C. 3142(c)(2)) is amended by striking out ‘‘in25 cluded in the most recent plan submitted to the Con-
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1 gress under section 2506 of title 10’’ and inserting

2 in lieu thereof ‘‘identified in the most recent assess3 ment prepared under section 2505 of title 10’’.

4 (d) COORDINATION WITH OTHER AMENDMENTS.—

5 For purposes of applying amendments made by provisions

6 of this Act other than provisions of this section, this sec7 tion shall be treated as having been enacted immediately

8 before the other provisions of this Act.

9 TITLE XI—DEPARTMENT OF

10 DEFENSE CIVILIAN PERSONNEL

11 SEC. 1101. REPEAL OF EMPLOYMENT PREFERENCE NOT

12 NEEDED FOR RECRUITMENT AND RETEN13 TION OF QUALIFIED CHILD CARE PROVID14 ERS.

15 Section 1792 of title 10, United States Code, is

16 amended—

17 (1) by striking out subsection (d); and

18 SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FAC19 ULTY MEMBERS OF THE UNITED STATES AIR

20 FORCE INSTITUTE OF TECHNOLOGY.

21 Section 9314(b)(2)(B) of title 10, United States

22 Code, is amended by striking out ‘‘section 5306(e)’’ and

23 inserting in lieu thereof ‘‘section 5373’’.

24 (2) by redesignating subsection (e) as sub25 section (d).
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1 SEC. 1103. FOUR-YEAR EXTENSION OF VOLUNTARY SEPA2 RATION INCENTIVE PAY AUTHORITY.

3 Section 5597(e) of title 5, United States Code, is

4 amended by striking out ‘‘September 30, 2001’’ and in5 serting in lieu thereof ‘‘September 30, 2003’’.

6 SEC. 1104. DEPARTMENT OF DEFENSE EMPLOYEE VOL7 UNTARY EARLY RETIREMENT AUTHORITY.

8 (a) CIVIL SERVICE RETIREMENT SYSTEM.—Section

9 8336 of title 5, United States Code, is amended—

10 (1) in subsection (d)(2), by inserting ‘‘except in

11 the case of an employee described in subsection

12 (o)(1),’’ after ‘‘(2)’’; and

13 (2) by adding at the end the following:

14 ‘‘(o)(1) An employee of the Department of Defense

15 who is separated from the service under conditions de16 scribed in paragraph (2) after completing 25 years of serv17 ice or after becoming 50 years of age and completing 20

18 years of service is entitled to an annuity.

19 ‘‘(2) Paragraph (1) applies to an employee who—

20 ‘‘(A) has been employed continuously by the

21 Department of Defense for more than 30 days be22 fore the date on which the Secretary concerned re23 quests the determinations required under in sub24 paragraph (D)(i);

25 ‘‘(B) is serving under an appointment that is

26 not limited by time;
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1 ‘‘(C) has not received a decision notice of invol2 untary separation for misconduct or unacceptable

3 performance that is pending decision; and

4 ‘‘(D) is separated from the service voluntarily

5 during a period in which—

6 ‘‘(i) the Department of Defense or the

7 military department or subordinate organization

8 within the Department of Defense or military

9 department in which the employee is serving is

10 undergoing a major reorganization, a major re11 duction in force, or a major transfer of func12 tion, and employees comprising a significant

13 percentage of the employees serving in that de14 partment or organization are to be separated or

15 subject to an immediate reduction in the rate of

16 basic pay (without regard to subchapter VI of

17 chapter 53, or comparable provisions of law), as

18 determined by the Office of Personnel Manage19 ment (under regulations prescribed by the Of20 fice) upon the request of the Secretary con21 cerned; and

22 ‘‘(ii) the employee is within the scope of an

23 offer of voluntary early retirement (as defined

24 by organizational unit, occupational series or

25 level, geographical location, any other similar
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1 factor that the Office of Personnel Management

2 determines appropriate, or any combination of

3 such definitions of scope), as determined by the

4 Secretary concerned under regulations pre5 scribed by the Office.

6 ‘‘(3) In this subsection, the term ‘Secretary con7 cerned’ means—

8 ‘‘(A) the Secretary of Defense, with respect to

9 an employee of the Department of Defense not em10 ployed in a position in a military department;

11 ‘‘(B) the Secretary of the Army, with respect to

12 an employee of the Department of the Army;

13 ‘‘(C) the Secretary of the Navy, with respect to

14 an employee of the Department of the Navy;

15 ‘‘(D) the Secretary of the Air Force, with re16 spect to an employee of the Department of the Air

17 Force.’’.

18 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

19 Section 8414 of such title is amended—

20 (1) in subsection (b)(1)(B), inserting ‘‘except in

21 the case of an employee described in subsection

22 (d)(1),’’ after ‘‘(B)’’; and

23 (2) by adding at the end the following:

24 ‘‘(d)(1) An employee of the Department of Defense

25 who is separated from the service under conditions de-
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1 scribed in paragraph (2) after completing 25 years of serv2 ice or after becoming 50 years of age and completing 20

3 years of service is entitled to an annuity.

4 ‘‘(2) Paragraph (1) applies to an employee who—

5 ‘‘(A) has been employed continuously by the

6 Department of Defense for more than 30 days be7 fore the date on which the Secretary concerned re8 quests the determinations required under subpara9 graph (D)(i);

10 ‘‘(B) is serving under an appointment that is

11 not limited by time;

12 ‘‘(C) has not received a decision notice of invol13 untary separation for misconduct or unacceptable

14 performance that is pending decision; and

15 ‘‘(D) is separated from the service voluntarily

16 during a period in which—

17 ‘‘(i) the Department of Defense or the

18 military department or subordinate organization

19 within the Department of Defense or military

20 department in which the employee is serving is

21 undergoing a major reorganization, a major re22 duction in force, or a major transfer of func23 tion, and employees comprising a significant

24 percentage of the employees serving in that de25 partment or organization are to be separated or
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1 subject to an immediate reduction in the rate of

2 basic pay (without regard to subchapter VI of

3 chapter 53, or comparable provisions of law), as

4 determined by the Office of Personnel Manage5 ment (under regulations prescribed by the Of6 fice) upon the request of the Secretary con7 cerned; and

8 ‘‘(ii) the employee is within the scope of an

9 offer of voluntary early retirement (as defined

10 by organizational unit, occupational series or

11 level, geographical location, any other similar

12 factor that the Office of Personnel Management

13 determines appropriate, or any combination of

14 such definitions of scope), as determined by the

15 Secretary concerned under regulations pre16 scribed by the Office.

17 ‘‘(3) In this subsection, the term ‘Secretary con18 cerned’ means—

19 ‘‘(A) the Secretary of Defense, with respect to

20 an employee of the Department of Defense not em21 ployed in a position in a military department;

22 ‘‘(B) the Secretary of the Army, with respect to

23 an employee of the Department of the Army;

24 ‘‘(C) the Secretary of the Navy, with respect to

25 an employee of the Department of the Navy;
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1 ‘‘(D) the Secretary of the Air Force, with re2 spect to an employee of the Department of the Air

3 Force.’’.

4 (c) CONFORMING AMENDMENTS.—(1) Section

5 8339(h) of such title is amended by striking out ‘‘or (j)’’

6 in the first sentence and inserting in lieu thereof ‘‘(j), or

7 (o)’’.

8 (2) Section 8464(a)(1)(A)(i) of such title is amended

9 by striking out ‘‘or (b)(1)(B)’’ and inserting in lieu thereof

10 ‘‘, (b)(1)(B), or (d)’’.

11 SEC. 1105. DEFENSE ADVANCED RESEARCH PROJECTS

12 AGENCY EXPERIMENTAL PERSONNEL MAN13 AGEMENT PROGRAM FOR TECHNICAL PER14 SONNEL.

15 (a) PROGRAM AUTHORIZED.—During the 5-year pe16 riod beginning on the date of the enactment of this Act,

17 the Secretary of Defense may carry out a program of ex18 perimental use of special personnel management authority

19 provided in this section in order to facilitate the recruit20 ment of eminent experts in science or engineering for re21 search and development projects administered by the De22 fense Advanced Research Projects Agency.

23 (b) SPECIAL PERSONNEL MANAGEMENT AUTHOR24 ITY.—Under the program, the Secretary may—
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1 (1) appoint scientists and engineers from out2 side the civil service and uniformed services (as such

3 terms are defined in section 2101 of title 5, United

4 States Code) to not more than 20 scientific and en5 gineering positions in the Defense Advanced Re6 search Projects Agency without regard to any provi7 sion of title 5, United States Code, governing the

8 appointment of employees in the civil service;

9 (2) prescribe the rates of basic pay for positions

10 to which employees are appointed under paragraph

11 (1) at rates not in excess of the maximum rate of

12 basic pay authorized for senior-level positions under

13 section 5376 of title 5, United States Code, notwith14 standing any provision of such title governing the

15 rates of pay or classification of employees in the ex16 ecutive branch; and

17 (3) pay any employee appointed under para18 graph (1) payments in addition to basic pay within

19 the limit applicable to the employee under subsection

20 (d)(1).

21 (c) LIMITATION ON TERM OF APPOINTMENT.—(1)

22 Except as provided in paragraph (2), the service of an em23 ployee under an appointment under subsection (b)(1) may

24 not exceed four years.
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1 (2) The Secretary may, in the case of a particular

2 employee, extend the period to which service is limited

3 under paragraph (1) by up to two years if the Secretary

4 determines that such action is necessary to promote the

5 efficiency of the Defense Advanced Research Projects

6 Agency.

7 (d) LIMITATIONS ON ADDITIONAL PAYMENTS.—(1)

8 The total amount of the additional payments paid to an

9 employee under subsection (b)(3) for any 12-month period

10 may not exceed the least of the following amounts:

11 (A) $25,000.

12 (B) The amount equal to 25 percent of the em13 ployee’s annual rate of basic pay.

14 (C) The amount of the limitation that is appli15 cable for a calendar year under section 5307(a)(1)

16 of title 5, United States Code.

17 (2) An employee appointed under subsection (b)(1)

18 is not eligible for any bonus, monetary award, or other

19 monetary incentive for service except for payments author20 ized under subsection (b)(3).

21 (e) PERIOD OF PROGRAM.—(1) The program author22 ized under this section shall terminate at the end of the

23 5-year period referred to in subsection (a).

24 (2) After the termination of the program—
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1 (A) no appointment may be made under para2 graph (1) of subsection (b);

3 (B) a rate of basic pay prescribed under para4 graph (2) of that subsection may not take effect for

5 a position; and

6 (C) no period of service may be extended under

7 subsection (c)(1).

8 (f) SAVINGS PROVISIONS.—In the case of an em9 ployee who, on the day before the termination of the pro10 gram, is serving in a position pursuant to an appointment

11 under subsection (b)(1)—

12 (1) the termination of the program does not

13 terminate the employee’s employment in that posi14 tion before the expiration of the lesser of—

15 (A) the period for which the employee was

16 appointed; or

17 (B) the period to which the employee’s

18 service is limited under subsection (c), including

19 any extension made under paragraph (2) of

20 that subsection before the termination of the

21 program; and

22 (2) the rate of basic pay prescribed for the posi23 tion under subsection (b)(2) may not be reduced for

24 so long (within the period applicable to the employee
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1 under paragraph (1)) as the employee continues to

2 serve in the position without a break in service.

3 (g) ANNUAL REPORT.—(1) Not later than October

4 15 of each year, beginning in 1999, the Secretary of De5 fense shall submit a report on the program to the Commit6 tee on Armed Services of the Senate and the Committee

7 on National Security of the House of Representatives. The

8 report submitted in a year shall cover the 12-month period

9 ending on the day before the anniversary, in that year,

10 of the date of the enactment of this Act.

11 (2) The annual report shall contain, for the period

12 covered by the report, the following:

13 (A) A detailed discussion of the exercise of au14 thority under this section.

15 (B) The sources from which appointees were re16 cruited.

17 (C) The methodology used for identifying and

18 selecting appointees.

19 (D) Any additional information that the Sec20 retary considers helpful for assessing the utility of

21 the authority under this section.

22 TITLE XII—JOINT WARFIGHTING

23 EXPERIMENTATION

24 SEC. 1201. FINDINGS.

25 Congress makes the following findings:
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1 (1) The collapse of the Soviet Union in 1991

2 and the unprecedented explosion of technological ad3 vances that could fundamentally redefine military

4 threats and military capabilities in the future have

5 generated a need to assess the defense policy, strat6 egy, and force structure necessary to meet future de7 fense requirements of the United States.

8 (2) The assessment conducted by the adminis9 tration of President Bush (known as the ‘‘Base

10 Force’’ assessment) and the assessment conducted

11 by the administration of President Clinton (known

12 as the ‘‘Bottom-Up Review’’) were important at13 tempts to redefine the defense strategy of the United

14 States and the force structure of the Armed Forces

15 necessary to execute that strategy.

16 (3) Those assessments have become inadequate

17 as a result of the pace of global geopolitical change

18 and the speed of technological change, which have

19 been greater than expected.

20 (4) The Chairman of the Joint Chiefs of Staff

21 reacted to the changing environment by developing

22 and publishing in May 1996 a vision statement,

23 known as ‘‘Joint Vision 2010’’, to be a basis for the

24 transformation of United States military capabilities.

25 The vision statement embodies the improved intel-
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1 ligence and command and control that is available in

2 the information age and sets forth the operational

3 concepts of dominant maneuver, precision engage4 ment, full-dimensional protection, and focused logis5 tics to achieve the objective of full spectrum domi6 nance.

7 (5) In 1996 Congress, concerned about the

8 shortcomings in defense policies and programs de9 rived from the Base-Force Review and the Bottom10 Up Review, determined that there was a need for a

11 new, comprehensive assessment of the defense strat12 egy of the United States and the force structure of

13 the Armed Forces necessary for meeting the threats

14 to the United States in the 21st century.

15 (6) As a result of that determination, Congress

16 passed the Military Force Structure Review Act of

17 1996 (subtitle B of title IX of the National Defense

18 Authorization Act for Fiscal Year 1997), which re19 quired the Secretary of Defense to complete in 1997

20 a quadrennial defense review of the defense program

21 of the United States. The review was required to in22 clude a comprehensive examination of the defense

23 strategy, force structure, force modernization plans,

24 infrastructure, and other elements of the defense

25 program and policies with a view toward determining
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1 and expressing the defense strategy of the United

2 States and establishing a revised defense program

3 through 2005. The Act also established a National

4 Defense Panel to assess the Quadrennial Defense

5 Review and to conduct an independent, nonpartisan

6 review of the strategy, force structure, and funding

7 required to meet anticipated threats to the national

8 security of the United States through 2010 and be9 yond.

10 (7) The Quadrennial Defense Review, com11 pleted by the Secretary of Defense in May 1997, de12 fined the defense strategy in terms of ‘‘Shape, Re13 spond, and Prepare Now’’. The Quadrennial Defense

14 Review placed greater emphasis on the need to pre15 pare now for an uncertain future by exploiting the

16 revolution in technology and transforming the force

17 toward Joint Vision 2010. It concluded that our fu18 ture force will be different in character than our cur19 rent force.

20 (8) The National Defense Panel Report, pub21 lished in December 1997, concluded that ‘‘the De22 partment of Defense should accord the highest prior23 ity to executing a transformation strategy for the

24 United States military, starting now.’’ The panel

25 recommended the establishment of a Joint Forces
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1 Command with the responsibility to be the joint

2 force integrator and provider and the responsibility

3 for driving the process for transforming United

4 States forces, including the conduct of joint experi5 mentation, and to have the budget for carrying out

6 those responsibilities.

7 (9) The assessments of both the Quadrennial

8 Defense Review and the National Defense Panel

9 provide Congress with a compelling argument that

10 the future security environment and the military

11 challenges to be faced by the United States in the

12 future will be fundamentally different than the cur13 rent environment and challenges. The assessments

14 also reinforce the foundational premise of the Gold15 water-Nichols Department of Defense Reorganiza16 tion Act of 1986 that warfare, in all of its varieties,

17 will be joint warfare requiring the execution of devel18 oped joint operational concepts.

19 (10) A process of joint experimentation is nec20 essary for—

21 (A) integrating advances in technology

22 with changes in the organizational structure of

23 the Armed Forces and the development of joint

24 operational concepts that will be effective
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1 against national security threats anticipated for

2 the future; and

3 (B) identifying and assessing the inter4 dependent aspects of joint warfare that are key

5 for transforming the conduct of military oper6 ations by the United States to meet those an7 ticipated threats successfully.

8 (11) It is critical for future readiness that the

9 Armed Forces of the United States innovatively in10 vestigate and test technologies, forces, and joint

11 operational concepts in simulations, wargames, and

12 virtual settings, as well as in field environments

13 under realistic conditions against the full range of

14 future challenges. It is essential that an energetic

15 and innovative organization be established and em16 powered to design and implement a process of joint

17 experimentation to develop and validate new joint

18 warfighting concepts, along with experimentation by

19 the Armed Forces, that is directed at transforming

20 the Armed Forces to meet the threats to the na21 tional security that are anticipated for the early 21st

22 century. That process will drive changes in doctrine,

23 organization, training and education, materiel, lead24 ership, and personnel.
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1 (12) The Department of Defense is committed

2 to conducting aggressive experimentation as a key

3 component of its transformation strategy.

4 (13) The competition of ideas is critical for

5 achieving effective transformation. Experimentation

6 by each of the Armed Forces has been, and will con7 tinue to be, a vital aspect of the pursuit of effective

8 transformation. Joint experimentation leverages the

9 effectiveness of each of the Armed Forces and the

10 Defense Agencies.

11 SEC. 1202. SENSE OF CONGRESS.

12 (a) DESIGNATION OF COMMANDER TO HAVE JOINT

13 WARFIGHTING EXPERIMENTATION MISSION.—It is the

14 sense of Congress that Congress supports the initiative of

15 the Secretary of Defense and the Chairman of the Joint

16 Chiefs of Staff to designate a commander of a combatant

17 command to have the mission for joint warfighting experi18 mentation, consistent with the understanding of Congress

19 that the Chairman of the Joint Chiefs of Staff will assign

20 the designated commander the tasks to develop and vali21 date new joint warfighting concepts and capabilities, and

22 to determine the implications, for doctrine, organization,

23 training and education, materiel, leadership, and person24 nel, of the Department of Defense strategy for transform-
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1 ing the Armed Forces to meet the national security threats

2 of the future.

3 (b) RESOURCES OF COMMANDER.—It is, further, the

4 sense of Congress that the commander designated to have

5 the joint warfighting experimentation mission should—

6 (1) have sufficient freedom of action and au7 thority over the necessary forces to successfully es8 tablish and conduct the process of joint warfighting

9 experimentation;

10 (2) be provided resources adequate for the joint

11 warfighting experimentation process; and

12 (3) have authority over the use of the resources

13 for the planning, preparation, conduct, and assess14 ment of joint warfighting experimentation.

15 (c) AUTHORITY AND RESPONSIBILITIES OF COM16 MANDER.—It is, further, the sense of Congress that, for

17 the conduct of joint warfighting experimentation to be ef18 fective, it is necessary that the commander designated to

19 have the joint warfighting experimentation mission also

20 have the authority and responsibility for the following:

21 (1) Developing and implementing a process of

22 joint experimentation to formulate and validate con23 cepts critical for joint warfighting in the future, in24 cluding (in such process) analyses, simulations,

25 wargames, information superiority and other experi-
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1 ments, advanced concept technology demonstrations,

2 and joint exercises conducted in virtual and actual

3 field environments.

4 (2) Planning, preparing, and conducting the

5 program of joint warfighting experimentation.

6 (3) Assessing the effectiveness of organizational

7 structures, operational concepts, and technologies

8 employed in joint experimentation, investigating op9 portunities for coordinating the evolution of the or10 ganizational structure of the Armed Forces compat11 ibly with the concurrent evolution of advanced tech12 nologies, and investigating new concepts for trans13 forming joint warfighting capabilities to meet the

14 operational challenges expected to be encountered by

15 the Armed Forces in the early 21st century.

16 (4) Coordinating with each of the Armed

17 Forces and the Defense Agencies regarding the de18 velopment of the equipment (including surrogate or

19 real technologies, platforms, and systems) necessary

20 for the conduct of joint experimentation, or, if nec21 essary, developing such equipment directly.

22 (5) Coordinating with each of the Armed

23 Forces and the Defense Agencies regarding the ac24 quisition of the materiel, supplies, services, and sur25 rogate or real technology resources necessary for the
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1 conduct of joint experimentation, or, if necessary,

2 acquiring such items and services directly.

3 (6) Developing scenarios and measures of effec4 tiveness for joint experimentation.

5 (7) Conducting so-called ‘‘red team’’ vulner6 ability assessments as part of joint experimentation.

7 (8) Assessing the interoperability of equipment

8 and forces.

9 (9) Providing the Secretary of Defense and the

10 Chairman of the Joint Chiefs of Staff with the com11 mander’s recommendations (developed on the basis

12 of joint experimentation) for reducing unnecessary

13 redundancy of equipment and forces.

14 (10) Providing the Secretary of Defense and

15 the Chairman of the Joint Chiefs of Staff with the

16 commander’s recommendations (developed on the

17 basis of joint experimentation) regarding synchroni18 zation of the fielding of advanced technologies

19 among the Armed Forces to enable the development

20 and execution of joint operational concepts.

21 (11) Submitting, reviewing, and making rec22 ommendations (in conjunction with the joint experi23 mentation and evaluation process) to the Chairman

24 of the Joint Chiefs of Staff on mission needs state25 ments and operational requirements documents.
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1 (12) Exploring new operational concepts (in2 cluding those developed within the Office of the Sec3 retary of Defense and Defense Agencies, other uni4 fied commands, the Armed Forces, and the Joint

5 Staff), and integrating and testing in joint experi6 mentation the systems and concepts that result from

7 warfighting experimentation by the Armed Forces

8 and the Defense Agencies.

9 (13) Developing, planning, refining, assessing,

10 and recommending to the Secretary of Defense and

11 the Chairman of the Joint Chiefs of Staff the most

12 promising joint concepts and capabilities for experi13 mentation and assessment.

14 (14) Assisting the Secretary of Defense and the

15 Chairman of the Joint Chiefs of Staff to prioritize

16 joint requirements and acquisition programs on the

17 basis of joint warfighting experimentation.

18 (d) CONTINUED EXPERIMENTATION BY OTHER DE19 FENSE ORGANIZATIONS.—It is, further, the sense of Con20 gress that—

21 (1) the Armed Forces are expected to continue

22 to develop concepts and conduct intraservice and

23 multiservice warfighting experimentation within their

24 core competencies; and
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1 (2) the commander of United States Special

2 Operations Command is expected to continue to de3 velop concepts and conduct joint experimentation as4 sociated with special operations forces.

5 (e) CONGRESSIONAL REVIEW.—It is, further, the

6 sense of Congress that—

7 (1) Congress will carefully review the initial re8 port and annual reports on joint warfighting experi9 mentation required under section 1203 to determine

10 the adequacy of the scope and pace of the trans11 formation of the Armed Forces to meet future chal12 lenges to the national security; and

13 (2) if the progress is inadequate, Congress will

14 consider legislation to establish a unified combatant

15 command with the mission, forces, budget, respon16 sibilities, and authority described in the preceding

17 provisions of this section.

18 SEC. 1203. REPORTS ON JOINT WARFIGHTING EXPERIMEN19 TATION.

20 (a) INITIAL REPORT.—(1) On such schedule as the

21 Secretary of Defense shall direct, the commander of the

22 combatant command assigned the mission for joint

23 warfighting experimentation shall submit to the Secretary

24 an initial report on the implementation of joint experimen25 tation. Not later than April 1, 1999, the Secretary shall
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1 submit the report, together with any comments that the

2 Secretary considers appropriate and any comments that

3 the Chairman of the Joint Chiefs of Staff considers appro4 priate, to the Chairmen of the Committee on Armed Serv5 ices of the Senate and the Committee on National Security

6 of the House of Representatives.

7 (2) The initial report of the commander shall include

8 the following:

9 (A) The commander’s understanding of the

10 commander’s specific authority and responsibilities

11 and of the commander’s relationship to the Sec12 retary of Defense, the Chairman of the Joint Chiefs

13 of Staff, the Joint Staff, the commanders of other

14 combatant commands, the Armed Forces, and the

15 Defense Agencies and activities.

16 (B) The organization of the commander’s com17 batant command, and of its staff, for carrying out

18 the joint warfighting experimentation mission.

19 (C) The process established for tasking forces

20 to participate in joint warfighting experimentation

21 and the commander’s specific authority over the

22 forces.

23 (D) Any forces designated or made available as

24 joint experimentation forces.
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1 (E) The resources provided for joint

2 warfighting experimentation, including the personnel

3 and funding for the initial implementation of joint

4 experimentation, the process for providing the re5 sources to the commander, the categories of the

6 funding, and the authority of the commander for

7 budget execution.

8 (F) The authority of the commander, and the

9 process established, for the development and acquisi10 tion of the material, supplies, services, and equip11 ment necessary for the conduct of joint warfighting

12 experimentation, including the authority and process

13 for development and acquisition by the Armed

14 Forces and the Defense Agencies and the authority

15 and process for development and acquisition by the

16 commander directly.

17 (G) The authority of the commander to design,

18 prepare, and conduct joint experiments (including

19 the scenarios and measures of effectiveness used) for

20 assessing operational concepts for meeting future

21 challenges to the national security.

22 (H) The role assigned the commander for—

23 (i) integrating and testing in joint

24 warfighting experimentation the systems that
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1 emerge from warfighting experimentation by

2 the Armed Forces or the Defense Agencies;

3 (ii) assessing the effectiveness of organiza4 tional structures, operational concepts, and

5 technologies employed in joint warfighting ex6 perimentation; and

7 (iii) assisting the Secretary of Defense and

8 the Chairman of the Joint Chiefs of Staff in

9 prioritizing acquisition programs in relationship

10 to future joint warfighting capabilities.

11 (I) Any other comments that the commander

12 considers appropriate.

13 (b) ANNUAL REPORT.—(1) On such schedule as the

14 Secretary of Defense shall direct, the commander of the

15 combatant command assigned the mission for joint

16 warfighting experimentation shall submit to the Secretary

17 an annual report on the conduct of joint experimentation

18 activities for the fiscal year ending in the year of the re19 port. Not later than December 1 of each year, the Sec20 retary shall submit the report, together with any com21 ments that the Secretary considers appropriate and any

22 comments that the Chairman of the Joint Chiefs of Staff

23 considers appropriate, to the Chairmen of the Committee

24 on Armed Services of the Senate and the Committee on
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1 National Security of the House of Representatives. The

2 first annual report shall be submitted in 1999.

3 (2) The annual report of the commander shall in4 clude, for the fiscal year covered by the report, the follow5 ing:

6 (A) Any changes in—

7 (i) the commander’s authority and respon8 sibilities for joint warfighting experimentation;

9 (ii) the commander’s relationship to the

10 Secretary of Defense, the Chairman of the

11 Joint Chiefs of Staff, the Joint Staff, the com12 manders of the other combatant commands, the

13 Armed Forces, or the Defense Agencies or ac14 tivities;

15 (iii) the organization of the commander’s

16 command and staff for joint warfighting experi17 mentation;

18 (iv) any forces designated or made avail19 able as joint experimentation forces;

20 (v) the process established for tasking

21 forces to participate in joint experimentation

22 activities or the commander’s specific authority

23 over the tasked forces;

24 (vi) the procedures for providing funding

25 for the commander, the categories of funding,
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1 or the commander’s authority for budget execu2 tion;

3 (vii) the authority of the commander, and

4 the process established, for the development

5 and acquisition of the material, supplies, serv6 ices, and equipment necessary for the conduct

7 of joint warfighting experimentation;

8 (viii) the commander’s authority to design,

9 prepare, and conduct joint experiments (includ10 ing the scenarios and measures of effectiveness

11 used) for assessing operational concepts for

12 meeting future challenges to the national secu13 rity; or

14 (ix) any role described in subsection

15 (a)(2)(H).

16 (B) The conduct of joint warfighting experi17 mentation activities, including the number of activi18 ties, the forces involved, the national security chal19 lenges addressed, the operational concepts assessed,

20 and the scenarios and measures of effectiveness

21 used.

22 (C) An assessment of the results of warfighting

23 experimentation within the Department of Defense.
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1 (D) The effect of warfighting experimentation

2 on the process for transforming the Armed Forces

3 to meet future challenges to the national security.

4 (E) Any recommendations that the commander

5 considers appropriate regarding—

6 (i) the development or acquisition of ad7 vanced technologies; or

8 (ii) changes in organizational structure,

9 operational concepts, or joint doctrine.

10 (F) An assessment of the adequacy of re11 sources, and any recommended changes for the proc12 ess of providing resources, for joint warfighting ex13 perimentation.

14 (G) Any recommended changes in the authority

15 or responsibilities of the commander.

16 (H) Any additional comments that the com17 mander considers appropriate.