440
(D) Then Commander-in-Chief of the Stra-
tegic Rocket Forces General Igor Sergeyev de-
nied that the facility was associated with nu-
clear forces.
(E) R. Zhukov, a Deputy in the State As-
sembly, in 1996 claimed that the Yamantau
Mountain facility belonged to ‘‘atomic sci-
entists’’ and posed a serious environmental haz-
ard.
(F) Russia’s 1997 federal budget lists the
project as a closed territory containing installa-
tions of the Ministry of Defense, while First
Deputy Defense Minister Andrey Kokoshin re-
cently stated that the Ministry of Defense has
nothing to do with the project.
(7) Continued cooperation and progress on
forging a new strategic relationship between the
United States and Russia requires that both nations
make transparent to one another major projects un-
derway or plans under consideration that could alter
the strategic balance sought in arms control agree-
ments or otherwise be construed by the other side as
an important new potential threat.
(8) The United States has allowed senior Rus-
sian military and government officials to have access
441
to key strategic facilities of the United States by
providing tours of the North American Air Defense
(NORAD) command at Cheyenne Mountain and the
United States Strategic Command (STRACOM)
headquarters in Omaha, Nebraska, among other
sites, and by providing extensive briefings on the op-
erations of those facilities.
(b) SENSE OF CONGRESS.—In light of the findings
in subsection (a), it is the sense of Congress that—
(1) the Russian government should provide to
the United States a written explanation on the prin-
cipal and secondary purposes of the Yamantau
Mountain project, specifically identifying the in-
tended end user and explaining the heavy investment
in that project;
(2) the Russian government should allow a
United States delegation, including officials of the
executive branch, Members of Congress, and United
States experts on underground facilities, to have ac-
cess to the Yamantau Mountain project to inspect
the facility and all rail-served buildings in the south-
ern 
and 
northern 
settlements 
located 
near
Yamantau; and
(3) the Russian government should direct senior
officials responsible for the Yamantau Mountain
442
project to explain to such a United States delegation
the purpose and operational concept of all completed
and planned underground facilities at Yamantau
Mountain in sufficient detail (including through the
use of drawings and diagrams) to support a high-
confidence judgment by the United States delegation
that the design is consistent with the official expla-
nations.
SEC. 1210. UNITED STATES ARMED FORCES IN BOSNIA.
(a) LIMITATION.—Funds appropriated or otherwise
made available for the Department of Defense may not
be obligated for the deployment of any ground elements
of the United States Armed Forces in the Republic of
Bosnia and Herzegovina after—
(1) June 30, 1998; or
(2) such later date as may be specifically pre-
scribed by law after the date of the enactment of
this Act, based upon a request from the President
or otherwise as the Congress may determine.
(b) EXCEPTIONS.—The limitation in subsection (a)
shall not apply to the extent necessary to support (1) a
limited number of United States military personnel suffi-
cient only to protect United States diplomatic facilities in
existence on the date of the enactment of this Act, and
(2) noncombat military personnel sufficient only to advise
443
the commanders North Atlantic Treaty Organization
peacekeeping operations in the Republic of Bosnia and
Herzegovina.
(c) CONSTRUCTION OF SECTION.—Nothing in this
section shall be deemed to restrict the authority of the
President under the Constitution to protect the lives of
United States citizens.
SEC. 1211. LIMITATION ON SUPPORT FOR LAW ENFORCE-
MENT ACTIVITIES IN BOSNIA.
None of the funds appropriated or otherwise made
available to the Department of Defense may be obligated
or expended after the date of the enactment of this Act
for the conduct of, or direct support for, law enforcement
activities in the Republic of Bosnia and Herzegovina, ex-
cept for the training of law enforcement personnel or to
prevent imminent loss of life.
SEC. 1212. PRESIDENTIAL REPORT ON POLITICAL AND
MILITARY CONDITIONS IN BOSNIA.
(a) REPORT.—Not later than December 15, 1997,
the President shall submit to Congress a report on the
political and military conditions in the Republic of Bosnia
and Herzegovina (hereafter in this section referred to as
Bosnia-Herzegovina). Of the funds available to the Sec-
retary of Defense for fiscal year 1998 for the operation
of United States ground forces in Bosnia-Herzegovina
444
during that fiscal year, no more than 60 percent may be
expended before the report is submitted.
(b) MATTERS TO BE INCLUDED.—The report under
subsection (a) shall include a discussion of the following:
(1) An identification of the specific steps taken
by the United States Government to transfer the
United States portion of the peacekeeping mission in
the Republic of Bosnia and Herzegovina to Euro-
pean allied nations or organizations.
(2) A detailed discussion of the proposed role
and involvement of the United States in supporting
peacekeeping activities in the Republic of Bosnia
and Herzegovina following the withdrawal of United
States ground forces from the Republic of Bosnia
and Herzegovina pursuant to section 1205.
(3) A detailed explanation and timetable for
carrying out the President’s commitment to with-
draw all United States ground forces from Bosnia-
Herzegovina by the end of June 1998, including the
planned date of commencement and completion of
the withdrawal.
(4) The date on which the transition from the
multinational force known as the Stabilization Force
to the planned multinational successor force to be
known as the Deterrence Force will occur and how
445
the decision as to that date will impact the estimates
of costs associated with the operation of United
States ground forces in Bosnia-Herzegovina during
fiscal year 1998 as contained in the President’s
budget for fiscal year 1998.
(5) The military and political considerations
that will affect the decision to carry out such a tran-
sition.
(6) Any plan to maintain or expand other
Bosnia-related operations (such as the operation
designated as Operation Deliberate Guard) if ten-
sions in Bosnia-Herzegovina remain sufficient to
delay the transition from the Stabilization Force to
the Deterrence Force and the estimated cost associ-
ated with each such operation.
(7) Whether allied nations participating in the
Bosnia mission have similar plans to increase and
maintain troop strength or maintain ground forces
in Bosnia-Herzegovina and, if so, the identity of
each such country and a description of that coun-
try’s plans.
(c) STABILIZATION FORCE DEFINED.—As used in
this section, the term ‘‘Stabilization Force’’ (referred to
as ‘‘SFOR’’) means the follow-on force to the Implementa-
tion Force (known as ‘‘IFOR’’) in the Republic of Bosnia
446
and Herzegovina and other countries in the region, au-
thorized under United Nations Security Council Resolu-
tion 1008 (December 12, 1996).
Subtitle B—Matters Relating To
Prevention of Technology Diver-
sion
SEC. 1231. FINDINGS.
Congress finds as follows:
(1) There have been numerous reports of Unit-
ed States-origin supercomputers being obtained by
countries of proliferation concern for use in weapon
development programs.
(2) China is considered by the United States
Government to be a country of proliferation concern.
(3) According to United States officials, China
has acquired at least 47 United States-origin super-
computers.
(4) Recent reports indicate that China has pur-
chased hundreds of supercomputers for use in its
weapons programs and that the United States is un-
sure of the location of those supercomputers or the
purposes for which they are being used.
(5) China has refused to allow the United
States to conduct post-shipment verifications of
dual-use items exported from the United States to
447
ensure that those items are not diverted to military
use.
(6) China has in the past diverted dual-use
items intended for civilian use to military purposes.
SEC. 1232. EXPORT APPROVALS FOR SUPERCOMPUTERS.
(a) PRIOR APPROVAL
OF EXPORTS
AND REEX-
PORTS.—The President shall require that no digital com-
puter with a composite theoretical performance of more
than 2,000 millions of theoretical operations per second
(MTOPS) may be exported or reexported to a country
specified in subsection (b) without the prior written ap-
proval of the Secretary of Commerce, the Secretary of De-
fense, the Secretary of Energy, the Secretary of State, and
the Director of the Arms Control and Disarmament Agen-
cy.
(b) COVERED COUNTRIES.—For purposes of sub-
section (a), the countries specified in this subsection are
the countries listed as ‘‘computer tier 3’’ eligible countries
in section 740.7(d) of title 15 of the Code of Federal Reg-
ulations, as in effect on June 10, 1997.
(c) TIME LIMIT.—The Secretary of Commerce, the
Secretary of Defense, the Secretary of Energy, the Sec-
retary of State, and the Director of the Arms Control and
Disarmament Agency shall provide a written response to
an application for export approval under subsection (a)
448
within 10 days after the application is received. If any
such Secretary or the Director declines to approve the ex-
port of a computer, the computer may be exported or reex-
ported only pursuant to a license issued by the Secretary
of Commerce under the Export Administration Regula-
tions of the Department of Commerce, and without regard
to the licensing exceptions otherwise authorized under sec-
tion 740.7 of title 15 of the Code of Federal Regulations,
as in effect on June 10, 1997.
SEC. 1233. REPORT ON EXPORTS OF SUPERCOMPUTERS.
(a) REPORT.—Not later than 30 days after the date
of the enactment of this Act, the President shall provide
to the congressional committees specified in subsection (d)
a report identifying all exports of digital computers with
a composite theoretical performance of over 2,000 millions
of theoretical operations per second (MTOPS) to all coun-
tries since January 25, 1996. For each export, the report
shall identify—
(1) whether an export license was applied for
and whether one was granted;
(2) the date of the transfer of the computer;
(3) the United States manufacturer and ex-
porter of the computer;
(4) the MTOPS level of the computer; and
(5) the recipient country and end user.
449
(b) ADDITIONAL INFORMATION
ON EXPORTS
TO
CERTAIN COUNTRIES.—In the case of exports to countries
specified in subsection (c), the report under subsection (a)
shall identify the intended end use for the exported com-
puter and the assessment by the executive branch of
whether the end user is a military end user or an end user
involved in activities relating to nuclear, chemical, or bio-
logical weapons or missile technology. Information pro-
vided under this subsection may be submitted in classified
form if necessary.
(c) COVERED COUNTRIES.—For purposes of sub-
section (b), the countries specified in this subsection are—
(1) the countries listed as ‘‘computer tier 3’’ eli-
gible countries in section 740.7(d) of title 15 of the
Code of Federal Regulations, as in effect on June
10, 1997; and
(2) the countries listed in section 740.7(e) of
title 15 of the Code of Federal Regulations, as in ef-
fect on June 10, 1997.
(d) CONGRESSIONAL COMMITTEES.—For purposes of
subsection (a), the congressional committees specified in
this subsection are the following:
(1) The Committee on Banking, Housing, and
Urban Affairs and the Committee on Armed Serv-
ices of the Senate.
450
(2) The Committee on International Relations
and the Committee on National Security of the
House of Representatives.
SEC. 1234. POST-SHIPMENT VERIFICATION OF EXPORT OF
SUPERCOMPUTERS.
(a) REQUIRED POST-SHIPMENT VERIFICATION.—
The Secretary of Commerce shall conduct post-shipment
verification of each supercomputer that is exported from
the United States, on or after the date of the enactment
of this Act, to a country specified in subsection (c).
(b) COVERED SUPERCOMPUTERS.—Subsection (a)
applies with respect to a digital computer with a composite
theoretical performance in excess of 2,000 millions of theo-
retical operations per second (MTOPS).
(c) COVERED COUNTRIES.—For purposes of sub-
section (a), the countries specified in this subsection are
the countries listed as ‘‘computer tier 3’’ eligible countries
in section 740.7 of title 15 of the Code of Federal Regula-
tions, as in effect on June 10, 1997.
(d) ANNUAL REPORT.—The Secretary of Commerce
shall submit to the congressional committees specified in
subsection (f) an annual report on the results of post-ship-
ment verifications conducted under this section during the
preceding year. Each such report shall include a list of
all such items exported from the United States to such
451
countries during the previous year and, with respect to
each such export, the following:
(1) The destination country.
(2) The date of export.
(3) The intended end use and intended end
user.
(4) The results of the post-shipment verifica-
tion.
(e) EXPLANATION WHEN VERIFICATION NOT CON-
DUCTED.—If a post-shipment verification has not been
conducted in accordance with subsection (a) with respect
to any such export during the period covered by a report,
the Secretary shall include in the report for that period
a detailed explanation of the reasons why such a post-ship-
ment verification was not conducted.
(f) CONGRESSIONAL COMMITTEES.—For purposes of
subsection (a), the congressional committees specified in
this subsection are the following:
(1) The Committee on National Security and
the Committee on International Relations of the
House of Representatives.
(2) The Committee on Armed Services and the
Committee on Banking, Housing, and Urban Affairs
of the Senate.
452
TITLE XIII—DEFENSE
PERSONNEL REFORMS
SEC. 1301. REDUCTION IN PERSONNEL ASSIGNED TO MAN-
AGEMENT 
HEADQUARTERS 
AND 
HEAD-
QUARTERS SUPPORT ACTIVITIES.
(a) IN GENERAL.—(1) Chapter 3 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 130a. Management headquarters and headquarters
support activities personnel: limitation
‘‘(a) LIMITATION.—Effective October 1, 2001, the
number of management headquarters and headquarters
support activities personnel in the Department of Defense
may not exceed the 75 percent of the baseline number.
‘‘(b) PHASED REDUCTION.—The number of manage-
ment headquarters and headquarters support activities
personnel in the Department of Defense—
‘‘(1) as of October 1, 1998, may not exceed 90
percent of the baseline number;
‘‘(2) as of October 1, 1999, may not exceed 85
percent of the baseline number; and
‘‘(3) as of October 1, 2000, may not exceed 80
percent of the baseline number.
‘‘(c) BASELINE NUMBER.—In this section, the term
‘baseline number’ means the number of management
453
headquarters and headquarters support activities person-
nel in the Department of Defense as of October 1, 1997.
‘‘(d) MANAGEMENT HEADQUARTERS
AND HEAD-
QUARTERS
SUPPORT
ACTIVITIES
PERSONNEL
DE-
FINED.—In this section:
‘‘(1) The term ‘management headquarters and
headquarters support activities personnel’ means
military and civilian personnel of the Department of
Defense who are assigned to, or employed in, func-
tions in management headquarters activities or in
management headquarters support activities.
‘‘(2) The terms ‘management headquarters ac-
tivities’ and ‘management headquarters support ac-
tivities’ have the meanings given those terms in De-
partment of Defense Directive 5100.73, entitled ‘De-
partment of Defense Management Headquarters and
Headquarters Support Activities’, as in effect on No-
vember 12, 1996.
‘‘(e) LIMITATION
ON REASSIGNMENT
OF FUNC-
TIONS.—In carrying out reductions in the number of per-
sonnel assigned to, or employed in, management head-
quarters and headquarters support activities in order to
comply with this section, the Secretary of Defense and the
Secretaries of the military departments may not reassign
454
functions in order to evade the requirements of this sec-
tion.
‘‘(f) FLEXIBILITY.—If the Secretary of Defense de-
termines, and certifies to Congress, that the limitation in
subsection (b) with respect to any fiscal year would ad-
versely affect United States national security, the Sec-
retary may waive the limitation under that subsection with
respect to that fiscal year. If the Secretary of Defense de-
termines, and certifies to Congress, that the limitation in
subsection (a) during fiscal year 2001 would adversely af-
fect United States national security, the Secretary may
waive the limitation under that subsection with respect to
that fiscal year. The authority under this subsection may
be used only once, with respect to a single fiscal year.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘130a. Management headquarters and headquarters support activities personnel:
limitation.’’.
(b) IMPLEMENTATION REPORT.—Not later than Jan-
uary 15, 1998, the Secretary of Defense shall submit to
Congress a report—
(1) containing a plan to achieve the personnel
reductions required by section 130a of title 10, Unit-
ed States Code, as added by subsection (a); and
455
(2) including the recommendations of the Sec-
retary regarding—
(A) the revision, replacement, or aug-
mentation of Department of Defense Directive
5100.73, entitled ‘‘Department of Defense
Management Headquarters and Headquarters
Support Activities’’, as in effect on November
12, 1996; and
(B) the revision of the definitions of the
terms ‘‘management headquarters activities’’
and ‘‘management headquarters support activi-
ties’’ under that Directive so that those terms
apply uniformly throughout the Department of
Defense.
(c) CODIFICATION OF PRIOR PERMANENT LIMITA-
TION ON OSD PERSONNEL.—(1) Chapter 4 of title 10,
United States Code, is amended by adding at the end a
new section 143 consisting of—
(A) a heading as follows:
‘‘§ 143. Office of the Secretary of Defense personnel:
limitation’’;
and
(B) a text consisting of the text of subsections
(a) through (f) of section 903 of the National De-
456
fense Authorization Act for Fiscal Year 1997 (Pub-
lic Law 104–201; 110 Stat. 2617).
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘143. Office of the Secretary of Defense personnel: limitation.’’.
(3) Section 903 of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2617) is repealed.
SEC. 1302. ADDITIONAL REDUCTION IN DEFENSE ACQUISI-
TION WORKFORCE.
(a) IN GENERAL.—(1) Chapter 87 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 1765. Limitations on number of personnel
‘‘(a) LIMITATION.—Effective October 1, 2001, the
number of defense acquisition personnel may not exceed
the baseline number reduced by 124,000.
‘‘(b) PHASED REDUCTION.—The number of the num-
ber of defense acquisition personnel—
‘‘(1) as of October 1, 1998, may not exceed the
baseline number reduced by 40,000;
‘‘(2) as of October 1, 1999, may not exceed the
baseline number reduced by 80,000; and
‘‘(3) as of October 1, 2000, may not exceed the
baseline number reduced by 102,000.
457
‘‘(c) BASELINE NUMBER.—For purposes of this sec-
tion, the baseline number is the total number of defense
acquisition personnel as of October 1, 1997.
‘‘(d) DEFENSE
ACQUISITION
PERSONNEL
DE-
FINED.—(1) In this section, the term ‘defense acquisition
personnel’ means military and civilian personnel (other
than civilian personnel described in paragraph (2)) who
are assigned to, or employed in, acquisition organizations
of the Department of Defense (as specified in Department
of Defense Instruction numbered 5000.58 dated January
14, 1992).
‘‘(2) Such term does not include civilian employees
of the Department of Defense who are employed at a
maintenance depot.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1765. Limitations on number of personnel.’’.
(b) IMPLEMENTATION REPORT.—Not later than Jan-
uary 15, 1998, the Secretary of Defense shall submit to
Congress a report—
(1) containing a plan to achieve the personnel
reductions required by section 1765 of title 10,
United States Code, as added by subsection (a); and
458
(2) containing any recommendations (including
legislative proposals) that the Secretary considers
necessary to fully achieve such reductions.
(c) TECHNICAL REFERENCE CORRECTION.—Section
1721(c) of title 10, United States Code, is amended by
striking out ‘‘November 25, 1988’’ and inserting in lieu
thereof ‘‘November 12, 1996’’.
SEC. 1303. AVAILABILITY OF FUNDS FOR SEPARATION PAY
FOR DEFENSE ACQUISITION PERSONNEL.
Of the amount authorized to be appropriated pursu-
ant to section 301(5) for operation and maintenance for
Defense-wide activities, $100,000,000 shall be available
only for the payment of separation pay under section 5597
of title 5, United States Code, to civilian employees of the
Department of Defense who are defense acquisition per-
sonnel (as defined in section 1765(d) of title 10, United
States Code).
SEC. 1304. PERSONNEL REDUCTIONS IN UNITED STATES
TRANSPORTATION COMMAND.
(a) PURPOSE OF REDUCTION.—The purpose of the
reduction in the number of United States Transportation
Command personnel is to recognize and continue the ef-
fort of the Secretary of Defense to achieve the United
States Transportation Command reengineering reform
459
plan to eliminate administrative duplication and process
inefficiencies.
(b) REDUCTION
IN UNITED STATES TRANSPOR-
TATION COMMAND PERSONNEL.—(1) Effective October 1,
1998, the number of United States Transportation Com-
mand personnel may not exceed the number equal to the
baseline number reduced by 1,000.
(2) For purposes of this section, the baseline number
is the total number of United States Transportation Com-
mand personnel as of September 30, 1997.
(c) UNITED STATES TRANSPORTATION COMMAND
PERSONNEL DEFINED.—For purposes of this section, the
term ‘‘United States Transportation Command personnel’’
means military and civilian personnel who are assigned to,
or employed in, the United States Transportation Com-
mand Headquarters, Air Force Air Mobility Command,
Navy Military Sealift Command, Army Military Traffic
Management Command, and Defense Courier Service.
(d) SOURCE OF REDUCTIONS.—In reducing the num-
ber of United States Transportation Command personnel
as required by subsection (b), the Secretary of Defense
shall limit such reductions to the United States Transpor-
tation Command personnel who are in the following occu-
pational classifications established to group similar occu-
pations and work positions into a consistent structure:
460
(1) Enlisted members in the Functional Sup-
port and Administration classification (designated as
occupational code 5XX), as described in Department
of Defense Instruction 1312.1, dated August 9,
1995, regarding ‘‘Department of Defense Occupa-
tional Information Collection and Reporting’’.
(2) Officers in the General Officers and Execu-
tives classification (designated as occupational code
1XX), Administrators (designated as occupational
code 7XX), and Supply, Procurement, and Allied Of-
ficers classification (designated as occupational code
8XX), as described in such instruction.
(3) Civilian personnel in the Program Manage-
ment classification (designated as occupational code
GS–0340), Accounting and Budget classification
(designated as occupational code GS–0500 and re-
lated codes), Business and Industry classification
(designated as occupational code GS–1100 and re-
lated codes), and Supply classification (designated as
occupational code GS–2000 and related codes), as
described in Office of Personnel Management docu-
ment El–12, dated November 1, 1995, entitled
‘‘Federal Occupational Groups’’.
461
(e) WAIVER AUTHORITY.—The Secretary of Defense
may waive or suspend operation of this section in the event
of a war or national emergency.
TITLE XIV—DEFENSE BUSINESS
PRACTICES REFORMS
Subtitle A—Competitive
Procurement Requirements
SEC. 1401. COMPETITIVE PROCUREMENT OF FINANCE AND
ACCOUNTING SERVICES.
(a) COMPETITIVE
PROCUREMENT
REQUIRED.—
Chapter 165 of title 10, United States Code, is amended
by adding at the end the following new section:
‘‘§ 2784. Competitive procurement of finance and ac-
counting services
‘‘(a) STUDY AND REPORT.—(1) Not later than De-
cember 1, 1997, the Secretary of Defense shall initiate a
study regarding the competitive procurement of finance
and accounting services for the Department of Defense,
including non-appropriated fund instrumentalities of the
Department of Defense. The study shall analyze the con-
duct of competitions among private-sector sources and the
Defense Finance and Accounting Service and other inter-
ested Federal agencies.
462
‘‘(2) Not later than June 1, 1998, the Secretary of
Defense shall submit to Congress a report containing the
results of the study conducted under paragraph (1).
‘‘(b) COMPETITIVE PROCUREMENT REQUIRED.—Be-
ginning not later than October 1, 1999, the Secretary of
Defense shall competitively procure finance and account-
ing services for the Department of Defense, including non-
appropriated fund instrumentalities of the Department of
Defense. The Secretary shall conduct competitions among
private-sector sources and the Defense Finance and Ac-
counting Service and other interested Federal agencies.
Such a competition shall not involve competition between
components of the Defense Finance and Accounting Serv-
ice.
‘‘(c) IMPROVEMENT OF COMPETITIVE ABILITY.—Be-
fore conducting a competition under subsection (b) for the
procurement of finance and accounting services that are
being provided by a component of the Defense Finance
and Accounting Service, the Secretary of Defense shall
provide the component with an opportunity to establish
its most efficient organization.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2784. Competitive procurement of finance and accounting services.’’.
463
SEC. 1402. COMPETITIVE PROCUREMENT OF SERVICES TO
DISPOSE OF SURPLUS DEFENSE PROPERTY.
(a) COMPETITIVE PROCUREMENT REQUIRED.—(1)
Chapter 153 of title 10, United States Code, is amended
by inserting after section 2572 the following new section:
‘‘§ 2573. Competitive procurement of services to dis-
pose of surplus property
‘‘(a) COMPETITIVE PROCUREMENT OF SERVICES.—
Beginning not later than October 1, 1998, the Secretary
of Defense shall competitively procure services for the De-
partment of Defense in connection with the disposal of
surplus property at each site at which the Defense Reutili-
zation and Marketing Service operates. The Secretary
shall conduct competitions among private-sector sources
and the Defense Reutilization and Marketing Service and
other interested Federal agencies for the performance of
all such services at a particular site.
‘‘(b) IMPROVEMENT OF COMPETITIVE ABILITY.—Be-
fore conducting a competition under subsection (a) for the
procurement of services described in such subsection that
are being provided by a component of the Defense Reutili-
zation and Marketing Service, the Secretary of Defense
shall provide the component with an opportunity to estab-
lish its most efficient organization.
‘‘(c) REPORTING REQUIREMENTS.—Not later than
90 days after the end of each fiscal year in which services
464
for the disposal of surplus property are competitively pro-
cured under subsection (a), the Secretary of Defense shall
submit to Congress a report specifying—
‘‘(1) the type and volume of such services pro-
cured by the Department of Defense during that fis-
cal year from the Defense Reutilization and Market-
ing Service and from other sources;
‘‘(2) the former sites of the Defense Reutiliza-
tion and Marketing Service operated during that fis-
cal year by contractors (other than the Defense Re-
utilization and Marketing Service); and
‘‘(3) the total amount of any fees paid by such
contractors in connection with the performance of
such services during that fiscal year.
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to alter the requirements regarding
the identification or demilitarization of an item of excess
property or surplus property of the Department of De-
fense before the disposal of the item.
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) The term ‘surplus property’ means any
personal excess property which is not required for
the needs and the discharge of the responsibilities of
all Federal agencies and the disposal of which is the
responsibility of the Department of Defense.
465
‘‘(2) The term ‘excess property’ means any per-
sonal property under the control of the Department
of Defense which is not required for its needs and
the discharge of its responsibilities, as determined by
the Secretary of Defense.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2572 the following new item:
‘‘2573. Competitive procurement of services to dispose of surplus property.’’.
(b) IMPLEMENTATION
REPORT.—Not later than
March 1, 1998, the Secretary of Defense shall submit to
Congress a report—
(1) containing a plan to implement the competi-
tive procurement requirements of section 2573 of
title 10, United States Code, as added by subsection
(a); and
(2) identifying other functions of the Defense
Reutilization and Marketing Service that the Sec-
retary considers suitable for performance by private-
sector sources.
SEC. 1403. COMPETITIVE PROCUREMENT OF FUNCTIONS
PERFORMED 
BY 
DEFENSE 
INFORMATION
SYSTEMS AGENCY.
(a) COMPETITIVE
PROCUREMENT
REQUIRED.—
Chapter 146 of title 10, United States Code, is amended
by adding at the end the following new section:
466
‘‘§ 2474. Competitive procurement of information
services
‘‘(a) STUDY AND REPORT.—(1) Not later than De-
cember 1, 1997, the Secretary of Defense shall initiate a
study regarding the competitive procurement of those
commercial and industrial type functions performed before
the date of the enactment of this Act by the Defense Infor-
mation Systems Agency, with particular regard to the
functions performed at the entities known as megacenters.
The study shall analyze the conduct of competitions
among private-sector sources and the Defense Information
Systems Agency and other interested Federal agencies.
‘‘(2) Not later than June 1, 1998, the Secretary of
Defense shall submit to Congress a report containing the
results of the study conducted under paragraph (1).
‘‘(b) COMPETITIVE PROCUREMENT REQUIRED.—Be-
ginning not later than October 1, 1999, the Secretary of
Defense shall competitively procure those commercial and
industrial type functions performed before that date by the
Defense Information Systems Agency. The Secretary shall
conduct competitions among private-sector sources and
the Defense Information Systems Agency and other inter-
ested Federal agencies.
‘‘(c) IMPROVEMENT OF COMPETITIVE ABILITY.—Be-
fore conducting a competition under subsection (b) for the
procurement of information services that are being pro-
467
vided by a component of the Defense Information Systems
Agency, the Secretary of Defense shall provide the compo-
nent with an opportunity to establish its most efficient or-
ganization.
‘‘(d) EXCEPTION FOR CLASSIFIED FUNCTIONS.—(1)
The requirement of subsection (b) shall not apply to the
procurement of services involving a classified function per-
formed by the Defense Information Systems Agency.
‘‘(2) In this subsection, the term ‘classified function’
means any telecommunications or information services
that—
‘‘(A) involve intelligence activities;
‘‘(B) involve cryptologic activities related to na-
tional security;
‘‘(C) involve command and control of military
forces;
‘‘(D) involve equipment that is an integral part
of a weapon or weapons system; or
‘‘(E) are critical to the direct fulfillment of mili-
tary or intelligence missions (other than routine ad-
ministrative and business applications, such as pay-
roll, finance, logistics, and personnel management
applications).’’.
468
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2474. Competitive procurement of information services.’’.
SEC. 1404. COMPETITIVE PROCUREMENT OF PRINTING AND
DUPLICATION SERVICES.
(a) EXTENSION.—Subsection (a) of section 351 of
the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104–106; 110 Stat. 266) is amended—
(1) by striking out ‘‘and 1997’’ and inserting in
lieu thereof ‘‘through 1998’’; and
(2) by striking out ‘‘Defense Printing Service’’
and inserting in lieu thereof ‘‘Defense Automation
and Printing Service’’.
(b) PROHIBITION ON SURCHARGE FOR SERVICES.—
Such section is further amended by adding at the end the
following new subsection:
‘‘(d) 
PROHIBITION
ON
IMPOSITION
OF
SUR-
CHARGE.—The Defense Automation and Printing Service
may not impose a surcharge on any printing and duplica-
tion service for the Department of Defense that is pro-
cured from a source outside of the Department.’’.
SEC. 1405. COMPETITIVE PROCUREMENT OF CERTAIN OPH-
THALMIC SERVICES.
(a) COMPETITIVE PROCUREMENT REQUIRED.—Be-
ginning not later than October 1, 1998, the Secretary of
469
Defense shall competitively procure from private-sector
sources, or other sources outside of the Department of De-
fense, all ophthalmic services related to the provision of
single vision and multivision eyeware for members of the
Armed Forces, retired members, and certain covered bene-
ficiaries under chapter 55 of title 10, United States Code,
who would otherwise receive such ophthalmic services
through the Department of Defense.
(b) EXCEPTION.—Subsection (a) shall not apply to
the extent that the Secretary of Defense determines that
the use of sources within the Department of Defense to
provide such ophthalmic services—
(1) is necessary to meet the readiness require-
ments of the Armed Forces; or
(2) is more cost effective.
(c) COMPLETION OF EXISTING ORDERS.—Subsection
(a) shall not apply to orders for ophthalmic services re-
ceived on or before September 30, 1998.
SEC. 1406. COMPETITIVE PROCUREMENT OF COMMERCIAL
AND INDUSTRIAL TYPE FUNCTIONS BY DE-
FENSE AGENCIES.
(a) COMPETITION REQUIRED.—Section 2461 of title
10, United States Code, is amended—
(1) by redesignating subsection (g) as sub-
section (h); and
470
(2) by inserting after subsection (f) the follow-
ing new subsection:
‘‘(g) COMPETITIVE PROCUREMENT
BY DEFENSE
AGENCIES.—(1) Beginning not later than September 30,
1999 (unless an earlier effective date is otherwise required
for a specific Defense Agency), the Secretary of Defense
shall competitively procure those commercial and indus-
trial type functions performed before that date by a De-
fense Agency. The Secretary shall conduct competitions
among private-sector sources and the Defense Agency in-
volved and other interested Federal agencies.
‘‘(2) Before conducting a competition under sub-
section (a) for the procurement of a commercial or indus-
trial type function that is being performed by a component
of a Defense Agency, the Secretary of Defense shall pro-
vide the component with an opportunity to establish its
most efficient organization.
‘‘(3) In this subsection, the term ‘Defense Agency’
means a program activity specified in the table entitled
‘Program and Financing’ for operation and maintenance,
Defense-wide activities, in the budget of the President
transmitted to Congress for fiscal year 1998 pursuant to
section 1105 of title 31 (and any successor of such activ-
ity).’’.
471
(b) IMPLEMENTATION
REPORT.—Not later than
March 1, 1998, the Secretary of Defense shall submit to
Congress a report containing a plan to implement the com-
petitive procurement requirements of section 2461(g) of
title 10, United States Code, as added by subsection (a).
Subtitle B—Reform of Conversion
Process
SEC. 1411. DEVELOPMENT OF STANDARD FORMS REGARD-
ING PERFORMANCE WORK STATEMENT AND
REQUEST FOR PROPOSAL FOR CONVERSION
OF CERTAIN OPERATIONAL FUNCTIONS OF
MILITARY INSTALLATIONS.
(a) STANDARD FORMS REQUIRED.—Chapter 146 of
title 10, United States Code, is amended by inserting after
section 2474, as added by section 1403, the following new
section:
‘‘§ 2475. Military installations: use of standard forms
in conversion process
‘‘(a) STANDARDIZATION
OF REQUIREMENTS.—(1)
The Secretary of Defense shall develop standard forms (to
be known as a ‘standard performance work statement’ and
a ‘standard request for proposal’) to be used in the consid-
eration for conversion to contractor performance of those
commercial services and functions at military installations
that have been converted to contractor performance at a
472
rate of 50 percent or more, as determined under sub-
section (c).
‘‘(2) A separate standard form shall be developed for
each service and function covered by paragraph (1) and
the forms shall be used throughout the Department of De-
fense in lieu of the performance work statement and re-
quest for proposal otherwise required under the proce-
dures and requirements of Office of Management and
Budget Circular A–76 (or any successor administrative
regulation or policy).
‘‘(3) The Secretary shall develop and implement the
standard forms not later than October 1, 1998.
‘‘(b) INAPPLICABILITY OF ELEMENTS OF OMB CIR-
CULAR A–76.—On and after October 1, 1998, the proce-
dures and requirements of Office of Management and
Budget Circular A–76 regarding performance work state-
ments and requests for proposals shall not apply with re-
spect to the conversion to contractor performance at a
military installation of a service or function for which a
standard form is required under subsection (a).
‘‘(c) DETERMINATION OF CONTRACTOR PERFORM-
ANCE PERCENTAGE.—In determining the percentage at
which a particular commercial service or function at mili-
tary installations has been converted to contractor per-
formance, the Secretary of Defense shall take into consid-
473
eration all military installations and use the final estimate
of the percentage of contractor performance of services
and functions contained in the most recent commercial
and industrial activity inventory database established
under Office of Management and Budget Circular A–76.
‘‘(d) EXCLUSION
OF MULTI-FUNCTION CONVER-
SION.—If a commercial service or function for which a
standard form is developed under subsection (a) is com-
bined with another service or function (for which such a
form is not required) for purposes of considering the serv-
ices and functions at the military installation for conver-
sion to contractor performance, a standard form developed
under subsection (a) may not be used in the conversion
process in lieu of the procedures and requirements of Of-
fice of Management and Budget Circular A–76 regarding
performance work statements and requests for proposals.
‘‘(e) EFFECT ON OTHER LAWS.—Nothing in this sec-
tion shall be construed to supersede any other require-
ments or limitations, specifically contained in this chapter,
on the conversion to contractor performance of activities
performed by civilian employees of the Department of De-
fense.
‘‘(f) MILITARY INSTALLATION DEFINED.—In this
section, the term ‘military installation’ means a base,
camp, post, station, yard, center, homeport facility for any
474
ship, or other activity under the jurisdiction of the Depart-
ment of Defense, including any leased facility.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2474, as added by section
1403, the following new item:
‘‘2475. Military installations: use of standard forms in conversion process.’’.
SEC. 1412. STUDY AND NOTIFICATION REQUIREMENTS FOR
CONVERSION OF COMMERCIAL AND INDUS-
TRIAL TYPE FUNCTIONS TO CONTRACTOR
PERFORMANCE.
(a) NOTIFICATION.—Section 2461 of title 10, United
States Code, is amended by striking out subsections (a)
and (b) and inserting in lieu thereof the following new sub-
sections:
‘‘(a) NOTIFICATION OF CONVERSION STUDY.—(1) In
the case of a commercial or industrial type function of the
Department of Defense that on October 1, 1980, was
being performed by Department of Defense civilian em-
ployees, the Secretary of Defense shall notify Congress of
any decision to study the function for possible conversion
to performance by a private contractor. The notification
shall include information regarding the anticipated length
and cost of the study.
475
‘‘(2) A study of a commercial or industrial type func-
tion for possible conversion to contractor performance
shall include the following:
‘‘(A) A comparison of the performance of the
function by Department of Defense civilian employ-
ees and by private contractor to determine whether
contractor performance will result in savings to the
Government over the life of the contract.
‘‘(B) An examination of the potential economic
effect on employees who would be affected by the
conversion, and the potential economic effect on the
local community and the United States if more than
75 employees perform the function.
‘‘(C) An examination of the effect of contract-
ing for performance of the function on the military
mission of the function.
‘‘(b) NOTIFICATION OF CONVERSION DECISION.—If,
as a result of the completion of a study under subsection
(a) regarding the possible conversion of a function to per-
formance by a private contractor, a decision is made to
convert the function to contractor performance, the Sec-
retary of Defense shall notify Congress of the conversion
decision. The notification shall—
476
‘‘(1) indicate that the study conducted regard-
ing conversion of the function to performance by a
private contractor has been completed;
‘‘(2) certify that the comparison required by
subsection (a)(2)(A) as part of the study dem-
onstrates that the performance of the function by a
private contractor will result in savings to the Gov-
ernment over the life of the contract;
‘‘(3) certify that the entire comparison is avail-
able for examination; and
‘‘(4) contain a timetable for completing conver-
sion of the function to contractor performance.’’.
(b) WAIVER FOR SMALL FUNCTIONS.—Subsection
(d) of such section is amended by striking out ‘‘45 or
fewer’’ and inserting in lieu thereof ‘‘20 or fewer’’.
SEC. 1413. COLLECTION AND RETENTION OF COST INFOR-
MATION DATA ON CONTRACTED OUT SERV-
ICES AND FUNCTIONS.
(a) COLLECTION AND RETENTION REQUIRED.—Sec-
tion 2463 of title 10, United States Code, is amended—
(1) by redesignating subsections (a) and (b) as
subsections (b) and (c), respectively; and
(2) by inserting after the section heading the
following new subsection:
477
‘‘(a) REQUIREMENTS IN CONNECTION WITH CON-
VERSION TO CONTRACTOR PERFORMANCE.—With respect
to each contract converting the performance of a service
or function of the Department of Defense to contractor
performance (and any extension of such a contract), the
Secretary of Defense shall collect, during the term of the
contract or extension, but not to exceed five years, cost
information data regarding performance of the service or
function by private contractor employees. The Secretary
shall provide for the permanent retention of information
collected under this subsection.’’.
(b) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in subsection (b), as redesignated by sub-
section (a)(1)—
(A) by striking out the subsection heading
and inserting in lieu thereof ‘‘REQUIREMENTS
IN CONNECTION WITH RETURN TO EMPLOYEE
PERFORMANCE.—’’; and
(B) by striking out ‘‘to which this section
applies’’ and inserting in lieu thereof ‘‘described
in subsection (c),’’; and
(2) in subsection (c), as redesignated by sub-
section (a)(1)—
478
(A) by striking out the subsection heading
and inserting in lieu thereof ‘‘COVERED FISCAL
YEARS.—’’; and
(B) by striking out ‘‘This section’’ and in-
serting in lieu thereof ‘‘Subsection (b)’’.
(c) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 2463. Collection and retention of cost information
data on contracted out services and func-
tions
(2) The item relating to such section in the table of
sections at the beginning of chapter 146 of title 10, United
States Code, is amended to read as follows:
‘‘2463. Collection and retention of cost information data on contracted out serv-
ices and functions.’’.
Subtitle C—Other Reforms
SEC. 1421. REDUCTION IN OVERHEAD COSTS OF INVEN-
TORY CONTROL POINTS.
(a) REDUCTION
IN COSTS REQUIRED.—The Sec-
retary of Defense shall take such actions as may be nec-
essary to reduce the annual overhead costs of the supply
management activities of the Defense Logistics Agency
and the military departments (known as Inventory Control
Points) so that the annual overhead costs are not more
than eight percent of annual net sales at standard price
by the Inventory Control Points.
479
(b) TIME TO ACHIEVE REDUCTION.—The Secretary
shall achieve the cost reductions required by subsection
(a) not later than September 30, 2000.
(c) IMPLEMENTATION PLAN.—Not later than March
1, 1998, the Secretary of Defense shall submit to Congress
a plan to achieve the reduction in overhead costs required
by subsection (a).
(d) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘overhead costs’’ means the total
expenses of the Inventory Control Points, exclud-
ing—
(A) annual materiel costs; and
(B) military and civilian personnel related
costs, defined as personnel compensation and
benefits under the March 1996 Department of
Defense Financial Management Regulations,
Volume 2A, Chapter 1, Budget Account Title
File (Object Classification Name/Code), object
classifications 200, 211, 220, 221, 222, and
301.
(2) The term ‘‘net sales at standard price’’ has
the meaning given that term in the March 1996 De-
partment of Defense Financial Management Regula-
tions, Volume 2B, Chapter 9, and displayed in ‘‘Ex-
480
hibit Fund—14 Revenue and Expenses’’ for the sup-
ply management business areas.
SEC. 1422. CONSOLIDATION OF PROCUREMENT TECHNICAL
ASSISTANCE AND ELECTRONIC COMMERCE
TECHNICAL ASSISTANCE.
(a) CONSOLIDATION OF ASSISTANCE.—Chapter 142
of title 10, United States Code, is amended as follows:
(1) Sections 2412, 2414, 2417, and 2418 are
each amended by inserting ‘‘and electronic com-
merce’’ after ‘‘procurement’’ each place it appears.
(2) Section 2413 is amended—
(A) in subsection (b), by striking out ‘‘pro-
curement technical assistance’’ and inserting in
lieu thereof ‘‘both procurement technical assist-
ance and electronic commerce technical assist-
ance’’; and
(B) in subsection (c), by inserting ‘‘and
electronic commerce’’ after ‘‘procurement’’.
(b) REQUIREMENT TO USE COMPETITIVE PROCE-
DURES.—Section 2413 of such title is amended by adding
at the end the following new subsection:
‘‘(d) The Secretary shall use competitive procedures
in entering into cooperative agreements under subsection
(a).’’.
481
(c) LIMITATION ON USE OF FUNDS.—Section 2417
of such title is amended—
(1) by striking out ‘‘The Director’’ and insert-
ing in lieu thereof the following: ‘‘(b) ADMINISTRA-
TIVE COSTS.—The Director’’; and
(2) by inserting before subsection (b) (as des-
ignated by paragraph (1)) the following:
‘‘(a) LIMITATION ON USE OF FUNDS.—In any fiscal
year the Secretary of Defense may use for the program
authorized by this chapter only funds specifically appro-
priated for the program for that fiscal year.’’.
(d) CLERICAL AMENDMENTS.—(1) The heading for
chapter 142 of such title is amended to read as follows:
‘‘CHAPTER 
142—PROCUREMENT 
AND
ELECTRONIC COMMERCE TECHNICAL
ASSISTANCE PROGRAM’’.
(2) The tables of chapters at the beginning of subtitle
A, and at the beginning of part IV of subtitle A, of such
title are each amended by striking out the item relating
to chapter 142 and inserting in lieu thereof the following:
‘‘142. Procurement and Electronic Commerce Technical
Assistance Program .............................................. 2411’’.
(3) The heading for section 2417 of such title is
amended to read as follows:
482
‘‘§ 2417. Funding provisions’’.
(4) The table of sections at the beginning of chapter
142 of such title is amended by striking out the item relat-
ing to section 2417 and inserting in lieu thereof the follow-
ing:
‘‘2417. Funding provisions.’’.
SEC. 1423. PERMANENT AUTHORITY REGARDING CONVEY-
ANCE OF UTILITY SYSTEMS.
(a) IN GENERAL.—Chapter 159 of title 10, United
States Code, is amended by inserting after section 2687
the following new section:
‘‘§ 2688. Utility systems: permanent conveyance au-
thority.
‘‘(a) CONVEYANCE AUTHORITY.—The Secretary of a
military department may convey a utility system, or part
of a utility system, under the jurisdiction of the Secretary
to a municipal, private, regional, district, or cooperative
utility company or other entity. The conveyance may con-
sist of all right, title, and interest of the United States
in the utility system or such lesser estate as the Secretary
considers appropriate to serve the interests of the United
States.
‘‘(b) UTILITY SYSTEM DEFINED.—In this section,
the term ‘utility system’ includes the following:
‘‘(1) Electrical generation and supply systems.
‘‘(2) Water supply and treatment systems.
483
‘‘(3) Wastewater collection and treatment sys-
tems.
‘‘(4) Steam or hot or chilled water generation
and supply systems.
‘‘(5) Natural gas supply systems.
‘‘(6) Sanitary landfills or lands to be used for
sanitary landfills.
‘‘(7) Similar utility systems.
‘‘(c) CONSIDERATION.—(1) The Secretary of a mili-
tary department may accept consideration received for a
conveyance under subsection (a) in the form of a cash pay-
ment or a reduction in utility rate charges for a period
of time sufficient to amortize the monetary value of the
utility system, including any real property interests, con-
veyed.
‘‘(2) Cash payments received shall be credited to an
appropriation account designated as appropriate by the
Secretary of Defense. Amounts so credited shall be avail-
able for the same time period as the appropriation credited
and shall be used only for the purposes authorized for that
appropriation.
‘‘(d) CONGRESSIONAL NOTIFICATION.—A conveyance
may not be made under subsection (a) until—
‘‘(1) the Secretary of the military department
concerned submits to the appropriate committees of
484
Congress (as defined in section 2801(c)(4) of this
title) a report containing an economic analysis
(based upon accepted life-cycle costing procedures
approved by the Secretary of Defense) which dem-
onstrates that the full cost to the United States of
the proposed conveyance is cost-effective when com-
pared with alternative means of furnishing the same
utility systems; and
‘‘(2) a period of 21 days has elapsed after the
date on which the report is received by the commit-
tees.
‘‘(e) ADDITIONAL TERMS
AND CONDITIONS.—The
Secretary of the military department concerned may re-
quire such additional terms and conditions in a conveyance
entered into under subsection (a) as the Secretary consid-
ers appropriate to protect the interests of the United
States.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2687 the following new
item:
‘‘2688. Utility systems: permanent conveyance authority.’’.
485
TITLE XV—MISCELLANEOUS AD-
DITIONAL 
DEFENSE 
RE-
FORMS
SEC. 1501. LONG-TERM CHARTER CONTRACTS FOR ACQUI-
SITION OF AUXILIARY VESSELS FOR THE DE-
PARTMENT OF DEFENSE.
(a) PROGRAM AUTHORIZATION.—Chapter 631 of title
10, United States Code, is amended by adding at the end
the following new section:
‘‘§ 7233. Auxiliary vessels: authority for long-term
charter contracts
‘‘(a) AUTHORIZED CONTRACTS.—After September
30, 1998, the Secretary of the Navy, subject to subsection
(b), may enter into a contract for the long-term lease or
charter of a newly built surface vessel, under which the
contractor agrees to provide a crew for the vessel for the
term of the long-term lease or charter, for any of the fol-
lowing:
‘‘(1) The combat logistics force of the Navy.
‘‘(2) The strategic sealift program of the Navy.
‘‘(3) Other auxiliary support vessels for the De-
partment of Defense.
‘‘(b) CONTRACTS REQUIRED TO BE AUTHORIZED BY
LAW.—A contract may be entered into under this section
with respect to specific vessels only if the Secretary is spe-
486
cifically authorized by law to enter into such a contract
with respect to those vessels.
‘‘(c) FUNDS FOR CONTRACT PAYMENTS.—The Sec-
retary may make payments for contracts entered into
under this section using funds available for obligation dur-
ing the fiscal year for which the payments are required
to be made. Any such contract shall provide that the Unit-
ed States will not be required to make a payment under
the contract (other than a termination payment, if re-
quired) before October 1, 2000.
‘‘(d) BUDGETING PROVISIONS.—Any contract en-
tered into under this section shall be treated as a
multiyear service contract and as an operating lease for
purposes of any provision of law relating to the Federal
budget and Federal budget accounting procedures, includ-
ing part C of title II of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.),
and any regulation or directive (including any directive of
the Office of Management and Budget) prescribed with
respect to the Federal budget and Federal budget account-
ing procedures.
‘‘(e) TERM OF CONTRACT.—In this section, the term
‘long-term lease or charter’ means a lease, charter, service
contract, or conditional sale agreement with respect to a
487
vessel the term of which (including any option period) is
for a period of 20 years or more.
‘‘(f) OPTION TO BUY.—A contract entered into under
the authority of this section may contain options for the
United States to purchase one or more of the vessels cov-
ered by the contract at any time during, or at the end
of, the contract period (including any option period) upon
payment of an amount not in excess of the unamortized
portion of the cost of the vessels plus amounts incurred
in connection with the termination of the financing ar-
rangements associated with the vessels.
‘‘(g) DOMESTIC
CONSTRUCTION.—The Secretary
shall require in any contract entered into under this sec-
tion that each vessel to which the contract applies—
‘‘(1) shall have been constructed in a shipyard
within the United States; and
‘‘(2) upon delivery, shall be documented under
the laws of the United States.
‘‘(h) VESSEL CREWING.—The Secretary shall require
in any contract entered into under this section that the
crew of any vessel to which the contract applies be com-
prised of private sector commercial mariners.
‘‘(i) CONTINGENT WAIVER OF OTHER PROVISIONS
OF LAW.—A contract authorized by this section may be
entered into without regard to section 2401 or 2401a of
488
this title if the Secretary of Defense makes the following
findings with respect to that contract:
‘‘(1) The need for the vessels or services to be
provided under the contract is expected to remain
substantially unchanged during the contemplated
contract or option period.
‘‘(2) There is a reasonable expectation that
throughout the contemplated contract or option pe-
riod the Secretary of the Navy (or, if the contract
is for services to be provided to, and funded by, an-
other military department, the Secretary of that
military department) will request funding for the
contract at the level required to avoid contract can-
cellation.
‘‘(3) The use of such contract or the exercise of
such option is in the interest of the national defense.
‘‘(j) SOURCE OF FUNDS FOR TERMINATION LIABIL-
ITY.—If a contract entered into under this section is ter-
minated, the costs of such termination may be paid
from—
‘‘(1) amounts originally made available for per-
formance of the contract;
‘‘(2) amounts currently available for operation
and maintenance of the type of vessels or services
concerned and not otherwise obligated; or
489
‘‘(3) funds appropriated for those costs.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘7233. Auxiliary vessels: authority for long-term charter contracts.’’.
SEC. 1502. FIBER-OPTICS BASED TELECOMMUNICATIONS
LINKAGE OF MILITARY INSTALLATIONS.
(a) INSTALLATION REQUIRED.—In at least one met-
ropolitan area of the United States containing multiple
military installations of one or more military department
or Defense Agency, the Secretary of Defense shall provide
for the installation of fiber-optics based telecommuni-
cations technology to link as many of the installations in
the area as practicable in a privately dedicated tele-
communications network. The Secretary shall use a com-
petitive process to provide for the installation of the tele-
communications network through one or more new con-
tracts.
(b) FEATURES
OF NETWORK.—The telecommuni-
cations network shall provide direct access to local and
long distance telephone carriers, allow for transmission of
both classified and unclassified information, and take ad-
vantage of the various capabilities of fiber-optics based
telecommunications technology.
(c) TIME
FOR INSTALLATION.—The telecommuni-
cations network or networks to be installed under this sec-
490
tion shall be installed and operational not later than Sep-
tember 30, 1999.
(d) REPORT ON IMPLEMENTATION.—Not later than
March 1, 1998, the Secretary of Defense shall submit to
the congressional defense committees a report on the im-
plementation of subsections (a) and (b), including the met-
ropolitan area or areas selected for the telecommuni-
cations network, the estimated cost of the network, and
potential areas for the future use of such fiber-optics
based telecommunications technology.
SEC. 1503. REPEAL OF REQUIREMENT FOR CONTRACTOR
GUARANTEES ON MAJOR WEAPON SYSTEMS.
(a) REPEAL.—Section 2403 of title 10, United States
Code, is repealed.
(b) CLERICAL AND CONFORMING AMENDMENTS.—
(1) The table of sections at the beginning of chapter 141
of such title is amended by striking out the item relating
to section 2403.
(2) Section 803 of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2604; 10 U.S.C. 2430 note) is amended—
(A) in subsection (a), by striking out ‘‘2403,’’;
(B) by striking out subsection (c); and
(C) by redesignating subsection (d) as sub-
section (c).
491
SEC. 1504. REQUIREMENTS RELATING TO MICRO-PUR-
CHASES OF COMMERCIAL ITEMS.
(a) IN GENERAL.—Section 2304 of title 10, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(l) MICRO-PURCHASES.—(1) A contracting officer
may not award a contract or issue a purchase order to
buy commercial items for an amount equal to or less than
the micro-purchase threshold unless a member of the Sen-
ior Executive Service or a general or flag officer makes
a written determination that—
‘‘(A) the source or sources available for the
commercial item do not accept a preferred micro-
purchase method, and the contracting officer is seek-
ing a source that does accept such a method; or
‘‘(B) the nature of the commercial item neces-
sitates a contract or purchase order so that terms
and conditions can be specified.
‘‘(2) In this subsection:
‘‘(A) The term ‘micro-purchase threshold’ has
the meaning provided in section 32 of the Office of
Federal Procurement Policy Act (41 U.S.C. 428).
‘‘(B) The term ‘preferred micro-purchase meth-
od’ means the use of the Government-wide commer-
cial purchase card or any other method for carrying
out micro-purchases that the Secretary of Defense
492
prescribes in the regulations implementing this sub-
section.
‘‘(3) The Secretary of Defense shall prescribe regula-
tions to implement this subsection. The regulations shall
include such additional preferred methods of carrying out
micro-purchases, and such exceptions to the requirement
of paragraph (1), as the Secretary considers appro-
priate.’’.
(b) EFFECTIVE DATE.—Subsection (l) of section
2304 of title 10, United States Code, as added by sub-
section (a), shall apply with respect to micro-purchases
made on or after October 1, 1997.
SEC. 1505. AVAILABILITY OF SIMPLIFIED PROCEDURES TO
COMMERCIAL ITEM PROCUREMENTS.
(a) 
ARMED
SERVICES
ACQUISITIONS.—Section
2304(g) of title 10, United States Code, is amended in
paragraph (1)(B) by striking out ‘‘only’’.
(b) 
CIVILIAN
AGENCY
ACQUISITIONS.—Section
303(g) of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253(g)) is amended in para-
graph (1)(B) by striking out ‘‘only’’.
SEC. 1506. TERMINATION OF THE ARMED SERVICES PAT-
ENT ADVISORY BOARD.
(a) TERMINATION
OF BOARD.—The organization
within the Department of Defense known as the Armed
493
Services Patent Advisory Board is terminated. No funds
available for the Department of Defense may be used for
the operation of that Board after the date specified in sub-
section (c).
(b) TRANSFER OF FUNCTIONS.—All functions per-
formed on the day before the date of the enactment of
this Act by the Armed Services Patent Advisory Board
(including performance of the responsibilities of the De-
partment of Defense for security review of patent applica-
tions under chapter 17 of title 35, United States Code)
shall be transferred to the Defense Technology Security
Administration.
(c) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect at the end of the 120-day period beginning on the
date of the enactment of this Act.
SEC. 1507. COORDINATION OF DEPARTMENT OF DEFENSE
CRIMINAL INVESTIGATIONS AND AUDITS.
(a) BOARD ON CRIMINAL INVESTIGATIONS.—Chapter
7 of title 10, United States Code, is amended by adding
at the end the following new section:
‘‘§ 182. Board on Criminal Investigations
‘‘(a) ESTABLISHMENT.—(1) There is in the Depart-
ment of Defense a Board on Criminal Investigations. The
Board consists of the following officials:
494
‘‘(A) The Assistant Secretary of Defense for
Command, Control, Communications, and Intel-
ligence.
‘‘(B) The head of the Army Criminal Investiga-
tion Command.
‘‘(C) The head of the Naval Criminal Investiga-
tive Service.
‘‘(D) The head of the Air Force Office of Spe-
cial Investigations.
‘‘(2) To ensure cooperation between the military de-
partment criminal investigative organizations and the De-
fense Criminal Investigative Service, the Inspector General
of the Department of Defense shall serve as a nonvoting
member of the Board.
‘‘(b) FUNCTIONS OF BOARD.—The Board shall pro-
vide for coordination and cooperation between the military
department criminal investigative organizations so as to
avoid duplication of effort and maximize resources avail-
able to the military department criminal investigative or-
ganizations.
‘‘(c) REGIONAL
WORKING
GROUPS.—The Board
shall establish working groups at the regional level to ad-
dress and resolve issues of jurisdictional responsibility that
may arise regarding criminal investigations involving a
military department criminal investigative organization. A
495
working group shall consist of managers or supervisors of
the military department criminal investigative organiza-
tions who have the authority to make binding decisions
regarding which organization will conduct a particular
criminal investigation or whether a criminal investigation
should be conducted jointly.
‘‘(d) AUTHORITY OF ASSISTANT SECRETARY.—In the
event that a regional working group or the Board is unable
to resolve an issue of investigative responsibility, the As-
sistant Secretary of Defense for Command, Control, Com-
munications, and Intelligence shall have the responsibility
to make a final determination regarding the issue.
‘‘(e) MILITARY DEPARTMENT CRIMINAL INVESTIGA-
TIVE ORGANIZATION DEFINED.—In this section, the term
‘military department criminal investigative organization’
means any of the following:
‘‘(1) The Army Criminal Investigation Com-
mand.
‘‘(2) The Naval Criminal Investigative Service.
‘‘(3) The Air Force Office of Special Investiga-
tions.’’.
(b) BOARD ON AUDITS.—Such chapter is further
amended by inserting after section 182, as added by sub-
section (a), the following new section:
496
‘‘§ 183. Board on Audits
‘‘(a) ESTABLISHMENT.—(1) There is in the Depart-
ment of Defense a Board on Audits. The Board consists
of the following officials:
‘‘(A) The Under Secretary of Defense (Comp-
troller).
‘‘(B) The Auditor General of the Army.
‘‘(C) The Auditor General of the Navy.
‘‘(D) The Auditor General of the Air Force.
‘‘(E) The director of the Defense Contract
Audit Agency.
‘‘(2) To ensure cooperation between the defense au-
diting organizations and the Office of the Inspector Gen-
eral of the Department of Defense, the Inspector General
of the Department of Defense shall serve as a nonvoting
member of the Board.
‘‘(b) FUNCTIONS OF BOARD.—The Board shall pro-
vide for coordination and cooperation between the defense
auditing organizations so as to avoid duplication of effort
and maximize resources available to the defense auditing
organizations.
‘‘(c) REGIONAL
WORKING
GROUPS.—The Board
shall establish working groups at the regional level to ad-
dress and resolve issues of jurisdictional responsibility that
may arise regarding audits involving a defense auditing
organization. A working group shall consist of managers
497
or supervisors of the defense auditing organizations who
have the authority to make binding decisions regarding
which defense auditing organization will conduct a par-
ticular audit or whether an audit should be conducted
jointly.
‘‘(d) AUTHORITY OF UNDER SECRETARY OF DE-
FENSE (COMPTROLLER).—In the event that a regional
working group or the Board is unable to resolve an issue
of jurisdictional responsibility, the Under Secretary of De-
fense (Comptroller) shall have the responsibility to make
a final determination regarding the issue.
‘‘(e) 
DEFENSE
AUDITING
ORGANIZATION
DE-
FINED.—In this section, the term ‘defense auditing orga-
nization’ means any of the following:
‘‘(1) The Army Audit Agency.
‘‘(2) The Naval Audit Service.
‘‘(3) The Air Force Audit Agency.
‘‘(4) The Defense Contract Audit Agency.’’.
(c) WORKING GUIDANCE.—Not later than December
31, 1997, the Secretary of Defense shall prescribe such
policies as may be necessary for the operation of the Board
on Criminal Investigations and the Board on Audits estab-
lished pursuant to the amendments made by this section.
498
(d) CLERICAL AMENDMENTS.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new items:
‘‘182. Board on Criminal Investigations.
‘‘183. Board on Audits.’’.
SEC. 1508. DEPARTMENT OF DEFENSE BOARDS, COMMIS-
SIONS, AND ADVISORY COMMITTEES.
(a) TERMINATION OF EXISTING ADVISORY COMMIT-
TEES.—(1) Effective December 31, 1998, any advisory
committee established in, or administered or funded (in
whole or in part) by, the Department of Defense that (A)
is in existence on the day before the date of the enactment
of this Act, and (B) was not established by law, or ex-
pressly continued by law, after January 1, 1995, is termi-
nated.
(2) For purposes of this section, the term ‘‘advisory
committee’’ means an entity that is subject to the provi-
sions of the Federal Advisory Committee Act (5 U.S.C.
App.).
(b) REPORT ON COMMITTEES FOR WHICH CONTINU-
ATION IS REQUESTED.—Not later than March 1, 1998,
the Secretary of Defense shall submit to Congress a report
setting forth those advisory committees subject to sub-
section (a) that the Secretary proposes to continue. The
Secretary shall include in the report, for each such com-
mittee, the justification for continuing the committee and
499
a statement of the costs of such continuation over the next
four fiscal years. The Secretary shall include in the report
a proposal for any legislation that may be required for
the continuations proposed in the report.
(c) POLICY FOR FUTURE DOD ADVISORY COMMIT-
TEES.—(1) Chapter 7 of title 10, United States Code, is
amended by inserting after section 183, as added by sec-
tion 1507(b), the following new section:
‘‘§ 184. Boards, commissions, and other advisory com-
mittees: limitations
‘‘(a) LIMITATION ON ESTABLISHMENT.—No advisory
committee may be established in, or administered or fund-
ed (in whole or in part) by, the Department of Defense
except as specifically provided by law after the date of the
enactment of this section.
‘‘(b) TERMINATION OF ADVISORY COMMITTEES.—
Each advisory committee of the Department of Defense
(whether established by law, by the President, or by the
Secretary of Defense) shall terminate not later than the
expiration of the four-year period beginning on the date
of its establishment or on the date of the most recent con-
tinuation of the advisory committee by law.
‘‘(c) EXCEPTION FOR TEMPORARY ADVISORY COM-
MITTEES.—Subsection (a) does not apply to an advisory
committee established for a period of one year or less for
500
the purpose (as set forth in the charter of the advisory
committee) of examining a matter that is critical to the
national security of the United States.
‘‘(d) ANNUAL REPORT.—Not later than March 1 of
each year (beginning in 1999), the Secretary of Defense
shall submit to Congress a report on advisory committees
of the Department of Defense. In each such report, the
Secretary shall identify each advisory committee that the
Secretary proposes to support during the next fiscal year
and shall set forth the justification for each such commit-
tee and the projected costs for that committee for the next
fiscal year. In the case of any advisory committee that is
to terminate in the year following the year in which the
report is submitted pursuant to subsection (b) and that
the Secretary proposes be continued by law, the Secretary
shall include in the report a request for continuation of
the committee and a justification and cost estimate for
such continuation.
‘‘(e) ADVISORY COMMITTEE DEFINED.—In this sec-
tion, the term ‘advisory committee’ means an entity that
is subject to the provisions of the Federal Advisory Com-
mittee Act (5 U.S.C. App.).’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
501
to section 183, as added by section 1507(d), the following
new item:
‘‘184. Boards, commissions, and other advisory committees: limitations.’’.
SEC. 1509. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.
(a) IN GENERAL.—Subsection (a) of section 2396 of
title 10, United States Code, is amended—
(1) by striking out ‘‘and’’ at the end of para-
graph (2);
(2) by striking out the period at the end of
paragraph (3) and inserting in lieu thereof ‘‘; and’’;
and
(3) by adding at the end the following new
paragraph:
‘‘(4) public service utilities.’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 2396. Advances for payments for compliance with
foreign laws, rent in foreign countries,
tuition, public utility services, and pay
and supplies of armed forces of friendly
foreign countries’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 141 of such title is
amended to read as follows:
‘‘2396. Advances for payments for compliance with foreign laws, rent in foreign
countries, tuition, public utility services, and pay and supplies
of armed forces of friendly foreign countries.’’.
502
TITLE XVI—COMMISSION ON DE-
FENSE ORGANIZATION AND
STREAMLINING
SEC. 1601. ESTABLISHMENT OF COMMISSION.
(a) ESTABLISHMENT.—There is hereby established a
commission to be known as the ‘‘Commission on Defense
Organization and Streamlining’’ (hereinafter in this title
referred to as the ‘‘Commission’’).
(b) COMPOSITION.—The Commission shall be com-
posed of nine members, appointed as follows:
(1) Two members shall be appointed by the
chairman of the Committee on National Security of
the House of Representatives.
(2) Two members shall be appointed by the
ranking minority party member of the Committee on
National Security of the House of Representatives.
(3) Two members shall be appointed by the
chairman of the Committee on Armed Services of
the Senate.
(4) Two members shall be appointed by the
ranking minority party member of the Committee on
Armed Services of the Senate.
(5) One member, who shall serve as chairman
of the Commission, shall be appointed by at least
503
three of the Members of Congress referred to para-
graphs (1) through (4) acting jointly.
(c) QUALIFICATIONS.—Members of the Commission
shall be appointed from among private United States citi-
zens with knowledge and expertise in organization and
management matters.
(d) PERIOD OF APPOINTMENT; VACANCIES.—Mem-
bers shall be appointed for the life of the Commission. Any
vacancy in the Commission shall be filled in the same man-
ner as the original appointment.
(e) INITIAL ORGANIZATION REQUIREMENTS.—(1) All
appointments to the Commission shall be made not later
than 30 days after the date of the enactment of this Act.
(2) The Commission shall convene its first meeting
not later than 30 days after the date on which all members
of the Commission have been appointed.
(f) SECURITY CLEARANCES.—The Secretary of De-
fense shall expedite the processing of appropriate security
clearances for members of the Commission.
SEC. 1602. DUTIES OF COMMISSION.
(a) IN GENERAL.—(1) The Commission shall exam-
ine the missions, functions, and responsibilities of the Of-
fice of the Secretary of Defense, the management head-
quarters and headquarters support activities of the mili-
tary departments and Defense Agencies, and the various
504
acquisition organizations of the Department of Defense
(and the relationships among such Office, activities, and
organizations).
(2) On the basis of such examination, the Commis-
sion shall propose alternative organizational structures
and alternative allocations of authorities as it considers
appropriate.
(b) DUPLICATION AND REDUNDANCY.— In carrying
out its duties, the Commission shall identify areas of du-
plication and recommend options to streamline, reduce,
and eliminate redundancies.
(c) SPECIAL REQUIREMENTS REGARDING OFFICE OF
SECRETARY.—The examination of the missions, functions,
and responsibilities of the Office of the Secretary of De-
fense shall include the following:
(1) An assessment of the appropriate functions
of the Office and whether the Office of the Secretary
of Defense or some of its component parts should be
organized along mission lines.
(2) An assessment of the adequacy of the
present organizational structure to efficiently and ef-
fectively support the Secretary in carrying out re-
sponsibilities in a manner that ensures civilian au-
thority in the Department of Defense.
505
(3) An assessment of the extent of unnecessary
duplication of functions between the Office of the
Secretary of Defense and the Joint Staff.
(4) An assessment of the extent of unnecessary
duplication of functions between the Office of the
Secretary of Defense and the military departments.
(5) An assessment of the appropriate number of
Under Secretaries of Defense, Assistant Secretaries
of Defense, Deputy Under Secretaries of Defense,
and Deputy Assistant Secretaries of Defense.
(6) An assessment of any benefits or efficiencies
derived from decentralizing certain functions cur-
rently performed by the Office of the Secretary of
Defense.
(d) SPECIAL REQUIREMENTS REGARDING HEAD-
QUARTERS.—The examination of the missions, functions,
and responsibilities of the management headquarters and
headquarters support activities of the military depart-
ments and Defense Agencies shall include the following:
(1) An assessment on the adequacy of the
present headquarters organization structure to effi-
ciently and effectively support the mission of the
military departments and the Defense Agencies.
506
(2) An assessment of options to reduce the
number of personnel assigned to such headquarters
staffs and headquarters support activities.
(3) An assessment of the extent of unnecessary
duplication of functions between the Office of the
Secretary of Defense and headquarters staffs of the
military departments and the Defense Agencies.
(4) An assessment of the possible benefits that
could be derived from further functional consolida-
tion between the civilian secretariat of the military
departments and the staffs of the military service
chiefs.
(5) An assessment of the possible benefits that
could be derived from reducing the number of civil-
ian officers in the military departments who are ap-
pointed by and with the advice and consent of the
Senate.
(e) SPECIAL REQUIREMENTS REGARDING ACQUISI-
TION ORGANIZATIONS.—The examination of the missions,
functions, and responsibilities of the various acquisition
organizations of the Department of Defense shall include
the following:
(1) An assessment of benefits of consolidation
or selected elimination of Department of Defense ac-
quisition organizations.
507
(2) An assessment of the opportunities to
streamline the defense acquisition infrastructure
that were realized as a result of the enactment of
the Federal Acquisition Streamlining Act of 1994
(Public Law 103–355) and the Clinger-Cohen Act of
1996 (divisions D and E of Public Law 104–106) or
as result of other acquisition reform initiatives im-
plemented administratively during the period from
1993 through 1997.
(3) An assessment of such other defense acqui-
sition infrastructure streamlining or restructuring
options as the Commission considers appropriate.
(f) COOPERATION FROM GOVERNMENT OFFICIALS.—
In carrying out its duties, the Commission should receive
the full and timely cooperation of the Secretary of Defense
and any other United States Government official respon-
sible for providing the Commission with analyses, brief-
ings, and other information necessary for the fulfillment
of its responsibilities.
SEC. 1603. REPORTS.
The Commission shall submit to Congress an interim
report containing its preliminary findings and conclusions
not later than March 15, 1998, and a final report contain-
ing its findings and conclusions not later than July 15,
1998.
508
SEC. 1604. POWERS.
(a) HEARINGS.—The Commission or, at its direction,
any panel or member of the Commission, may, for the pur-
pose of carrying out the provisions of this title, hold hear-
ings, sit and act at times and places, take testimony, re-
ceive evidence, and administer oaths to the extent that the
Commission or any panel or member considers advisable.
(b) INFORMATION.—The Commission may secure di-
rectly from the Department of Defense and any other Fed-
eral department or agency information that the Commis-
sion considers necessary to enable the Commission to
carry out its responsibilities under this title.
SEC. 1605. COMMISSION PROCEDURES.
(a) MEETINGS.—The Commission shall meet at the
call of the Chairman.
(b) QUORUM.—(1) Five members of the Commission
shall constitute a quorum other than for the purpose of
holding hearings.
(2) The Commission shall act by resolution agreed
to by a majority of the members of the Commission.
(c) COMMISSION.—The Commission may establish
panels composed of less than full membership of the Com-
mission for the purpose of carrying out the Commission’s
duties. The actions of each such panel shall be subject to
the review and control of the Commission. Any findings
and determinations made by such a panel shall not be con-
509
sidered the findings and determinations of the Commis-
sion unless approved by the Commission.
(d) AUTHORITY OF INDIVIDUALS TO ACT FOR COM-
MISSION.—Any member or agent of the Commission may,
if authorized by the Commission, take any action which
the Commission is authorized to take under this title.
SEC. 1606. PERSONNEL MATTERS.
(a) PAY OF MEMBERS.—Members of the Commission
shall serve without pay by reason of their work on the
Commission.
(b) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title
5, United States Code, while away from their homes or
regular places of business in the performance of services
for the Commission.
(c) STAFF.—(1) The chairman of the Commission
may, without regard to the provisions of title 5, United
States Code, governing appointments in the competitive
service, appoint a staff director and such additional per-
sonnel as may be necessary to enable the Commission to
perform its duties. The appointment of a staff director
shall be subject to the approval of the Commission.
510
(2) The chairman of the Commission may fix the pay
of the staff director and other personnel without regard
to the provisions of chapter 51 and subchapter III of chap-
ter 53 of title 5, United States Code, relating to classifica-
tion of positions and General Schedule pay rates, except
that the rate of pay fixed under this paragraph for the
staff director may not exceed the rate payable for level
V of the Executive Schedule under section 5316 of such
title and the rate of pay for other personnel may not ex-
ceed the maximum rate payable for grade GS–15 of the
General Schedule.
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Upon
request of the chairman of the Commission, the head of
any Federal department or agency may detail, on a non-
reimbursable basis, any personnel of that department or
agency to the Commission to assist it in carrying out its
duties.
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The chairman of the Commission may
procure temporary and intermittent services under section
3109(b) of title 5, United States Code, at rates for individ-
uals which do not exceed the daily equivalent of the annual
rate of basic pay payable for level V of the Executive
Schedule under section 5316 of such title.
511
SEC. 1607. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.
(a) POSTAL AND PRINTING SERVICES.—The Com-
mission may use the United States mails and obtain print-
ing and binding services in the same manner and under
the same conditions as other departments and agencies of
the Federal Government.
(b) MISCELLANEOUS ADMINISTRATIVE
AND SUP-
PORT SERVICES.—The Secretary of Defense shall furnish
the Commission, on a reimbursable basis, any administra-
tive and support services requested by the Commission.
SEC. 1608. FUNDING.
Funds for activities of the Commission shall be pro-
vided from amounts appropriated for the Department of
Defense for operation and maintenance for Defense-wide
activities for fiscal year 1998. Upon receipt of a written
certification from the Chairman of the Commission speci-
fying the funds required for the activities of the Commis-
sion, the Secretary of Defense shall promptly disburse to
the Commission, from such amounts, the funds required
by the Commission as stated in such certification.
SEC. 1609. TERMINATION OF THE COMMISSION.
The Commission shall terminate 60 days after the
date of the submission of its final report under section
1603.
512
DIVISION 
B—MILITARY 
CON-
STRUCTION 
AUTHORIZA-
TIONS
SEC. 2001. SHORT TITLE.
This division may be cited as the ‘‘Military Construc-
tion Authorization Act for Fiscal Year 1998’’.
TITLE XXI—ARMY
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND
ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2104(a)(1), the Secretary of the Army
may acquire real property and carry out military construc-
tion projects for the installations and locations inside the
United States, and in the amounts, set forth in the follow-
ing table:
Army: Inside the United States
State
Installation or Location
Amount
Arizona ..................................
Fort Huachuca .................................
$20,000,000
California ...............................
Fort Irwin ........................................
$11,150,000
Naval Weapons Station, Concord .....
$23,000,000
Colorado ................................
Fort Carson ......................................
$47,300,000
Georgia ..................................
Fort Gordon .....................................
$22,000,000
Hunter Army Air Field, Fort Stew-
art .................................................
$54,000,000
Hawaii ...................................
Schofield Barracks ...........................
$44,000,000
Indiana ..................................
Crane Army Ammunition Activity ...
$7,700,000
Kansas ...................................
Fort Leavenworth .............................
$63,000,000
Fort Riley .........................................
$25,800,000
Kentucky ...............................
Fort Campbell ..................................
$43,700,000
Fort Knox .........................................
$7,200,000
Missouri .................................
Fort Leonard Wood .........................
$3,200,000
New Jersey ............................
Fort Monmouth ................................
$2,050,000
New Mexico ...........................
White Sands Missile Range ..............
$6,900,000
New York ..............................
Fort Drum ........................................
$24,400,000
North Carolina ......................
Fort Bragg .......................................
$61,900,000
Oklahoma ..............................
Fort Sill ............................................
$25,000,000
South Carolina ......................
Fort Jackson ....................................
$5,400,000
513
Army: Inside the United States—Continued
State
Installation or Location
Amount
Naval Weapons Station, Charleston
$7,700,000
Texas .....................................
Fort Bliss .........................................
$7,700,000
Fort Hood ........................................
$27,200,000
Fort Sam Houston ...........................
$16,000,000
Virginia ..................................
Fort A.P. Hill ...................................
$5,400,000
Fort Myer .........................................
$8,200,000
Fort Story ........................................
$2,050,000
Washington ............................
Fort Lewis ........................................
$33,000,000
CONUS Classified .................
Classified Location ...........................
$6,500,000
Total .....................................
$614,900,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2104(a)(2), the Secretary of the Army
may acquire real property and carry out military construc-
tion projects for the locations outside the United States,
and in the amounts, set forth in the following table:
Army: Outside the United States
Country
Installation or Location
Amount
Germany ................................
Ansbach ............................................
$22,000,000
Heidelberg ........................................
$8,800,000
Mannheim .........................................
$6,200,000
Military 
Support 
Group,
Kaiserslautern ..............................
$6,000,000
Korea .....................................
Camp Casey ......................................
$5,100,000
Camp Castle .....................................
$8,400,000
Camp Humphreys ............................
$32,000,000
Camp Red Cloud ..............................
$23,600,000
Camp Stanley ...................................
$7,000,000
Overseas Classified ................
Overseas Classified ...........................
$37,000,000
Total .....................................
$156,100,000
SEC. 2102. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to authorization of appro-
priations in section 2104(a)(5)(A), the Secretary of the
Army may construct or acquire family housing units (in-
514
cluding land acquisition) at the installations, for the pur-
poses, and in the amounts set forth in the following table:
Army: Family Housing
State
Installation or Location
Purpose
Amount
Arizona .........................
Fort Huachuca ............
55 Units ..........
$8,000,000
Hawaii ..........................
Schofield Barracks ......
132 Units ........
$26,600,000
Maryland ......................
Fort George Meade ......
56 Units ..........
$7,900,000
New Jersey ...................
Picatinny Arsenal ........
35 Units ..........
$7,300,000
North Carolina .............
Fort Bragg ..................
174 Units ........
$20,150,000
Texas ............................
Fort Bliss ....................
91 Units ..........
$12,900,000
Fort Hood ....................
130 Units ........
$18,800,000
Total ....
$103,950,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in
section 2104(a)(5)(A), the Secretary of the Army may
carry out architectural and engineering services and con-
struction design activities with respect to the construction
or improvement of family housing units in an amount not
to exceed $9,550,000.
SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in sections 2104(a)(5)(A),
the Secretary of the Army may improve existing military
family housing units in an amount not to exceed
$89,200,000.
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
515
30, 1997, for military construction, land acquisition, and
military family housing functions of the Department of the
Army in the total amount of $2,055,364,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2101(a),
$425,850,000.
(2) For the military construction projects out-
side the United States authorized by section
2101(b), $162,600,000.
(3) For unspecified minor military construction
projects authorized by section 2805 of title 10, Unit-
ed States Code, $6,000,000.
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $71,577,000.
(5) For military family housing functions:
(A) For construction and acquisition, plan-
ning and design and improvement of military
family housing and facilities, $200,400,000.
(B) For support of military family housing
(including the functions described in section
2833 of title 10, United States Code),
$1,148,937,000.
(6) For the construction of the National Range
Control Center, White Sands Missile Range, New
516
Mexico, authorized by section 2101(a) of the Mili-
tary Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104–201; 110 Stat.
2763), $18,000,000.
(7) For the construction of the whole barracks
complex renewal, Fort Knox, Kentucky, authorized
by section 2101(a) of the Military Construction Au-
thorization Act for Fiscal Year 1997 (division B of
Public Law 104–201; 110 Stat. 2763), $22,000,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 2101 of this Act
may not exceed—
(1) the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection
(a);
(2) $14,400,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of the Force XXI Soldier Development School at
Fort Hood, Texas);
(3) $24,000,000 (the balance of the amount au-
thorized under section 2101(a) for rail yard expan-
sion at Fort Carson, Colorado);
517
(4) $43,000,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a disciplinary barracks at Fort Leavenworth,
Kansas);
(5) $36,500,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a barracks at Hunter Army Airfield, Fort Stew-
art, Georgia);
(6) $44,200,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a barracks at Fort Bragg, North Carolina); and
(7) $17,000,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a barracks at Fort Sill, Oklahoma).
SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS,
FORT IRWIN, CALIFORNIA.
In the case of amounts appropriated pursuant to the
authorization of appropriations in section 2104(a)(1) of
the Military Construction Authorization Act for Fiscal
Year 1995 (division B of Public Law 103–337; 108 Stat.
3029) and section 2104(a)(1) of the Military Construction
Authorization Act for Fiscal Year 1996 (division B of
Public Law 104–106; 110 Stat. 524) for a military con-
struction project for Fort Irwin, California, involving the
construction of an air field for the National Training Cen-
518
ter at Barstow-Daggett, California, the Secretary of the
Army may use such amounts for the construction of a heli-
port at the same location.
TITLE XXII—NAVY
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND
ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(1), the Secretary of the Navy may
acquire real property and carry out military construction
projects for the installations and locations inside the Unit-
ed States, and in the amounts, set forth in the following
table:
Navy: Inside the United States
State
Installation or Location
Amount
Arizona ..................................
Marine Corps Air Station, Yuma .....
$12,250,000
Navy Detachment, Camp Navajo .....
$11,426,000
California ...............................
Marine Corps Air Station, Camp
Pendleton ......................................
$24,150,000
Marine Corps Air Station, Miramar
$8,700,000
Marine Corps Air-Ground Combat
Center, Twentynine Palms ...........
$3,810,000
Marine Corps Base, Camp Pendle-
ton ................................................
$60,069,000
Naval Air Facility, El Centro ..........
$11,000,000
Naval Air Station, North Island ......
$19,600,000
Naval Amphibious Base, Coronado ..
$10,100,000
Naval Construction Battalion Cen-
ter, Port Hueneme .......................
$3,200,000
Connecticut ............................
Naval Submarine Base, New Lon-
don ................................................
$18,300,000
Florida ...................................
Naval Air Station, Jacksonville ........
$3,480,000
Naval Air Station, Whiting Field .....
$1,300,000
Naval Station, Mayport ....................
$17,940,000
Hawaii ...................................
Marine Corps Air Station, Kaneohe
Bay ...............................................
$19,000,000
Naval Communications and Tele-
communications Area Master Sta-
tion Eastern Pacific, Honolulu .....
$3,900,000
Naval Station, Pearl Harbor ............
$25,000,000
Illinois ....................................
Naval Training Center, Great Lakes
$41,220,000
Indiana ..................................
Naval 
Surface 
Warfare 
Center,
Crane ............................................
$4,120,000
519
Navy: Inside the United States—Continued
State
Installation or Location
Amount
Maryland ...............................
Naval Electronics System Command,
St. Ingoes .....................................
$2,610,000
Mississippi .............................
Naval Air Station, Meridian .............
$7,050,000
North Carolina ......................
Marine Corps Air Station, Cherry
Point .............................................
$8,800,000
Marine Corps Air Station, New
River .............................................
$19,900,000
Rhode Island .........................
Naval Undersea Warfare Center Di-
vision, Newport .............................
$8,900,000
South Carolina ......................
Marine Corps Air Station, Beaufort
$17,730,000
Marine Corps Reserve Detachment
Parris Island .................................
$3,200,000
Texas .....................................
Naval Air Station, Corpus Christi ...
$800,000
Virginia ..................................
AEGIS Training Center, Dahlgren ..
$6,600,000
Fleet Combat Training Center, Dam
Neck ..............................................
$7,000,000
Naval Air Station, Norfolk ...............
$18,240,000
Naval Air Station, Oceana ...............
$34,000,000
Naval 
Amphibious 
Base, 
Little
Creek ............................................
$8,685,000
Naval Shipyard, Norfolk, Ports-
mouth ...........................................
$29,410,000
Naval Station, Norfolk .....................
$18,850,000
Naval 
Surface 
Warfare 
Center,
Dahlgren .......................................
$13,880,000
Naval Weapons Station, Yorktown ..
$14,547,000
Washington ............................
Naval Air Station, Whidbey Island ..
$1,100,000
Puget Sound Naval Shipyard, Brem-
erton .............................................
$4,400,000
Total .....................................
$524,267,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(2), the Secretary of the Navy may
acquire real property and carry out military construction
projects for the installations and locations outside the
United States, and in the amounts, set forth in the follow-
ing table:
Navy: Outside the United States
Country
Installation or Location
Amount
Bahrain .................................
Administrative Support Unit, Bah-
rain ...............................................
$30,100,000
Guam .....................................
Naval Communications and Tele-
communications Area Master Sta-
tion Western Pacific, Guam .........
$4,050,000
Italy .......................................
Naval Air Station, Sigonella ............
$21,440,000
520
Navy: Outside the United States—Continued
Country
Installation or Location
Amount
Naval Support Activity, Naples .......
$8,200,000
Puerto Rico ...........................
Naval Station, Roosevelt Roads .......
$500,000
United Kingdom ....................
Joint 
Maritime 
Communications
Center, St. Mawgan ......................
$2,330,000
Total .....................................
$66,620,000
SEC. 2202. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to the authorization of ap-
propriations in section 2204(a)(5)(A), the Secretary of the
Navy may construct or acquire family housing units (in-
cluding land acquisition) at the installations, for the pur-
poses, and in the amounts set forth in the following table:
Navy: Family Housing
State
Installation or Location
Purpose
Amount
California ......................
Marine Corps Air Sta-
tion, Miramar ..........
166 Units ........
$28,881,000
Marine Corps Air-
Ground Combat Cen-
ter, Twentynine
Palms .......................
132 Units ........
$23,891,000
Marine Corps Base,
Camp Pendleton ......
171 Units ........
$22,518,000
Naval Air Station,
Lemoore ...................
128 Units ........
$23,226,000
Naval Complex, San
Diego ........................
94 Units ..........
$13,500,000
Hawaii ..........................
Naval Complex, Pearl
Harbor .....................
84 Units ..........
$17,900,000
Louisiana ......................
Naval Complex, New
Orleans .....................
100 Units ........
$11,930,000
Texas ............................
Naval Complex,
Kingsville and Cor-
pus Christi ...............
212 Units ........
$22,250,000
Washington ...................
Naval Complex, Bangor
118 Units ........
$15,700,000
Total ....
$179,796,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriation in
section 2204(a)(5)(A), the Secretary of the Navy may
521
carry out architectural and engineering services and con-
struction design activities with respect to the construction
or improvement of military family housing units in an
amount not to exceed $15,100,000.
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in section 2204(a)(5)(A),
the Secretary of the Navy may improve existing military
family housing units in an amount not to exceed
$214,282,000.
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1997, for military construction, land acquisition, and
military family housing functions of the Department of the
Navy in the total amount of $2,053,025,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2201(a),
$524,267,000.
(2) For military construction projects outside
the United States authorized by section 2201(b),
$66,120,000.
522
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $9,960,000.
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $46,659,000.
(5) For military family housing functions:
(A) For construction and acquisition, plan-
ning and design and improvement of military
family housing and facilities, $409,178,000.
(B) For support of military housing (in-
cluding functions described in section 2833 of
title 10, United States Code), $976,504,000.
(6) For construction of bachelor enlisted quar-
ters at Naval Hospital, Great Lakes, Illinois, author-
ized by section 2201(a) of the Military Construction
Authorization Act for Fiscal Year 1997 (division B
of 
Public 
Law 
104–201; 
110 
Stat. 
2766),
$5,200,000.
(7) For construction of bachelor enlisted quar-
ters at Naval Station, Roosevelt Roads, Puerto Rico,
authorized by section 2201(a) of the Military Con-
struction Authorization Act for Fiscal Year 1997
(division B of Public Law 104–201; 110 Stat.
2767), $14,600,000.
523
(8) For construction of a large anecohic cham-
ber facility at Patuxent River Naval Air Warfare
Center, Maryland, authorized by section 2201(a) of
the Military Construction Authorization Act for Fis-
cal Year 1993 (division B of Public Law 102–484;
106 Stat. 2590), $9,000,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 2201 of this Act
may not exceed the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection (a).
(c) ADJUSTMENT.—The total amount authorized to
be appropriated pursuant to paragraphs (1) through (8)
of subsection (a) is the sum of the amounts authorized
to be appropriated in such paragraphs, reduced by
$8,463,000, which represents the combination of project
savings resulting from favorable bids, reduced overhead
costs, and cancellations due to force structure changes.
524
SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION
PROJECT 
AT 
NAVAL 
AIR 
STATION,
PASCAGOULA, 
MISSISSIPPI, 
FOR 
WHICH
FUNDS HAVE BEEN APPROPRIATED.
(a) AUTHORIZATION.—The table in section 2201(a)
of the Military Construction Authorization Act for Fiscal
Year 1997 (division B of Public Law 104–201; 110 Stat.
2766) is amended—
(1) by striking out the amount identified as the
total and inserting in lieu thereof ‘‘$594,982,000’’;
and
(2) by inserting after the item relating to Sten-
nis Space Center, Mississippi, the following new
item:
‘‘Naval Air Station, Pascagoula .................
$4,990,000’’.
(b) CONFORMING AMENDMENTS.—Section 2204(a)
of such Act (110 Stat. 2769) is amended—
(1) in the matter preceding the paragraphs, by
striking out ‘‘$2,213,731,000’’ and inserting in lieu
thereof ‘‘$2,218,721,000’’; and
(2) 
in 
paragraph 
(1), 
by 
striking 
out
‘‘$579,312,000’’ and inserting in lieu thereof
‘‘$584,302,000’’.
525
TITLE XXIII—AIR FORCE
SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND
LAND ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2304(a)(1), the Secretary of the Air Force
may acquire real property and carry out military construc-
tion projects for the installations and locations inside the
United States, and in the amounts, set forth in the follow-
ing table:
Air Force: Inside the United States
State
Installation or Location
Amount
Alabama .................................
Maxwell Air Force Base ...................
$14,874,000
Alaska ....................................
Clear Air Station ..............................
$67,069,000
Eielson Air Force Base ....................
$7,764,000
Indian Mountain ...............................
$1,991,000
Arizona ..................................
Luke Air Force Base ........................
$10,000,000
Arkansas ................................
Little Rock Air Force Base ..............
$3,400,000
California ...............................
Edwards Air Force Base ..................
$2,887,000
Vandenberg Air Force Base .............
$26,876,000
Colorado ................................
Buckley Air National Guard Base ...
$6,718,000
Falcon Air Force Station .................
$10,551,000
Peterson Air Force Base ..................
$4,081,000
United States Air Force Academy ...
$15,229,000
Florida ...................................
Eglin Auxiliary Field 9 ....................
$6,470,000
MacDill Air Force Base ...................
$1,543,000
Georgia ..................................
Moody Air Force Base .....................
$9,100,000
Robins Air Force Base .....................
$27,763,000
Idaho .....................................
Mountain Home Air Force Base ......
$17,719,000
Kansas ...................................
McConnell Air Force Base ...............
$11,669,000
Louisiana ...............................
Barksdale Air Force Base ................
$19,410,000
Mississippi .............................
Keesler Air Force Base ....................
$30,855,000
Missouri .................................
Whiteman Air Force Base ...............
$40,419,000
Nevada ...................................
Nellis Air Force Base .......................
$1,950,000
New Jersey ............................
McGuire Air Force Base ..................
$18,754,000
North Carolina ......................
Pope Air Force Base ........................
$20,656,000
North Dakota ........................
Grand Forks Air Force Base ...........
$8,560,000
Minot Air Force Base ......................
$5,200,000
Ohio .......................................
Wright-Patterson Air Force Base ....
$19,350,000
Oklahoma ..............................
Tinker Air Force Base .....................
$9,655,000
Vance Air Force Base ......................
$6,700,000
South Carolina ......................
Shaw Air Force Base .......................
$6,072,000
South Dakota ........................
Ellsworth Air Force Base ................
$6,600,000
Tennessee ..............................
Arnold Air Force Base .....................
$20,650,000
Texas .....................................
Dyess Air Force Base ......................
$10,000,000
Laughlin Air Force Base .................
4,800,000
Randolph Air Force Base .................
$2,488,000
Utah ......................................
Hill Air Force Base ..........................
$6,470,000
Virginia ..................................
Langley Air Force Base ...................
$4,031,000
526
Air Force: Inside the United States—Continued
State
Installation or Location
Amount
Washington ............................
Fairchild Air Force Base .................
$7,366,000
McChord Air Force Base .................
$9,655,000
CONUS Classified .................
Classified Location ...........................
$6,175,000
Total .....................................
$511,520,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2304(a)(2), the Secretary of the Air Force
may acquire real property and carry out military construc-
tion projects for the installations and locations outside the
United States, and in the amounts, set forth in the follow-
ing table:
Air Force: Outside the United States
Country
Installation or Location
Amount
Germany ................................
Spangdahlem Air Base .....................
$18,500,000
Italy .......................................
Aviano Air Base ...............................
$15,220,000
Korea .....................................
Kunsan Air Base ..............................
$10,325,000
Osan Air Base ..................................
$11,100,000
Portugal .................................
Lajes Field, Azores ..........................
$4,800,000
United Kingdom ....................
Royal Air Force, Lakenheath ...........
$11,400,000
Overseas Classified ................
Classified Location ...........................
$31,100,000
Total .....................................
$102,445,000
SEC. 2302. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to the authorization of ap-
propriations in section 2304(a)(5)(A), the Secretary of the
Air Force may construct or acquire family housing units
(including land acquisition) at the installations, for the
purposes, and in the amounts set forth in the following
table:
527
Air Force: Family Housing
State
Installation or Location
Purpose
Amount
Arizona .........................
Davis-Monthan Air
Force Base ...............
70 Units ..........
$9,800,000
California ......................
Edwards Air Force
Base .........................
95 Units ..........
$16,800,000
Travis Air Force Base
70 Units ..........
$9,714,000
Vandenberg Air Force
Base .........................
108 Units ........
$17,100,000
Delaware .......................
Dover Air Force Base
Ancillary Facil-
ity ................
$831,000
District of Columbia .....
Bolling Air Force Base
46 Units ..........
$5,100,000
Florida ..........................
MacDill Air Force Base
58 Units ..........
$10,000,000
Tyndall Air Force Base
32 Units ..........
$4,200,000
Georgia .........................
Robins Air Force Base
60 Units ..........
$6,800,000
Idaho ............................
Mountain Home Air
Force Base ...............
60 Units ..........
$11,032,000
Kansas ..........................
McConnell Air Force
Base .........................
19 Units ..........
$2,951,000
McConnell Air Force
Base .........................
Ancillary Facil-
ity ................
$581,000
Mississippi ....................
Columbus Air Force
Base .........................
50 Units ..........
$6,200,000
Keesler Air Force Base
40 Units ..........
$5,000,000
Montana .......................
Malmstrom Air Force
Base .........................
28 Units ..........
$4,842,000
New Mexico ..................
Kirtland Air Force
Base .........................
180 Units ........
$20,900,000
North Dakota ...............
Grand Forks Air Force
Base .........................
42 Units ..........
$7,936,000
Texas ............................
Dyess Air Force Base ..
70 Units ..........
$10,503,000
Goodfellow Air Force
Base .........................
3 Units ............
$500,000
Lackland Air Force
Base .........................
50 Units ..........
$7,400,000
Sheppard Air Force
Base .........................
40 Units ..........
$7,400,000
Wyoming ......................
F. E. Warren Air
Force Base ...............
52 Units ..........
$6,853,000
Total ....
$172,443,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in
section 2304(a)(5)(A), the Secretary of the Air Force may
carry out architectural and engineering services and con-
struction design activities with respect to the construction
or improvement of military family housing units in an
amount not to exceed $11,971,000.
528
SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2835 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in section 2304(a)(5)(A),
the Secretary of the Air Force may improve existing mili-
tary family housing units in an amount not to exceed
$156,995,000.
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR
FORCE.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1997, for military construction, land acquisition, and
military family housing functions of the Department of the
Air Force in the total amount of $1,810,090,000 as fol-
lows:
(1) For military construction projects inside the
United States authorized by section 2301(a),
$505,435,000.
(2) For military construction projects outside
the United States authorized by section 2301(b),
$102,445,000.
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $8,545,000.
529
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $45,880,000.
(5) For military housing functions:
(A) For construction and acquisition, plan-
ning and design and improvement of military
family housing and facilities, $341,409,000.
(B) For support of military family housing
(including the functions described in section
2833 of title 10, United States Code),
$830,234,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 2301 of this Act
may not exceed—
(1) the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection
(a); and
(2) $11,000,000 (the balance of the amount au-
thorized under section 2301(a) for the construction
of a B–2 low observability restoration facility at
Whiteman Air Force Base, Missouri).
530
(c) ADJUSTMENT.—The total amount authorized to
be appropriated pursuant to paragraphs (1) through (5)
of subsection (a) is the sum of the amounts authorized
to be appropriated in such paragraphs, reduced by
$23,858,000, which represents the combination of project
savings resulting from favorable bids, reduced overhead
costs, and cancellations due to force structure changes.
SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION
PROJECT AT MCCONNELL AIR FORCE BASE,
KANSAS, FOR WHICH FUNDS HAVE BEEN AP-
PROPRIATED.
(a) AUTHORIZATION.—The table in section 2301(a)
of the Military Construction Authorization Act for Fiscal
Year 1997 (division B of Public Law 104–201; 110 Stat.
2771) is amended in the item relating to McConnell Air
Force Base, Kansas, by striking out ‘‘$19,130,000’’ in the
amount 
column 
and 
inserting 
in 
lieu 
thereof
‘‘$25,830,000’’.
(b) CONFORMING AMENDMENTS.—Section 2304 of
such Act (110 Stat. 2774) is amended—
(1) in the matter preceding the paragraph, by
striking out ‘‘$1,894,594,000’’ and inserting in lieu
thereof ‘‘$1,901,294,000’’ and
531
(2) 
in 
paragraph 
(1), 
by 
striking 
out
‘‘$603,834,000’’ and inserting in lieu thereof
‘‘$610,534,000’’.
TITLE XXIV—DEFENSE
AGENCIES
SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUC-
TION AND LAND ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2405(a)(1), the Secretary of Defense may
acquire real property and carry out military construction
projects for the installations and locations inside the Unit-
ed States, and in the amounts, set forth in the following
table:
Defense Agencies: Inside the United States
Agency
Installation or Location
Amount
Defense Commissary Agency
Fort Lee, Virginia ............................
$9,300,000
Defense Finance and Ac-
counting Service ................
Columbus Center, Ohio ....................
$9,722,000
Naval Air Station, Millington, Ten-
nessee ............................................
$6,906,000
Naval Station, Norfolk, Virginia ......
$12,800,000
Naval Station, Pearl Harbor, Hawaii
$10,000,000
Defense Intelligence Agency ..
Bolling Air Force Base, District of
Columbia .......................................
$7,000,000
Redstone Arsenal, Alabama .............
$32,700,000
Defense Logistics Agency ......
Defense 
Distribution 
Depot—
DDNV, Virginia ...........................
$16,656,000
532
Defense Agencies: Inside the United States—Continued
Agency
Installation or Location
Amount
Defense Distribution New Cum-
berland—DDSP, Pennsylvania ....
$15,500,000
Defense Fuel Support Point, Craney
Island, Virginia .............................
$22,100,000
Defense General Supply Center,
Richmond (DLA), Virginia ..........
$5,200,000
Elmendorf Air Force Base, Alaska ..
$21,700,000
Naval 
Air 
Station, 
Jacksonville,
Florida ..........................................
$9,800,000
Truax Field, Wisconsin ....................
$4,500,000
Westover Air Reserve Base, Massa-
chusetts .........................................
$4,700,000
CONUS Various, CONUS Various ..
$11,275,000
Defense Medical Facilities
Office .................................
Fort Campbell, Kentucky .................
$13,600,000
Fort Detrick, Maryland ....................
$5,300,000
Fort Lewis, Washington ...................
$5,000,000
Hill Air Force Base, Utah ...............
$3,100,000
Holloman Air Force Base, New
Mexico ...........................................
$3,000,000
Lackland Air Force Base, Texas .....
$3,000,000
Marine Corps Combat Dev Com,
Quantico, Virginia ........................
$19,000,000
McGuire Air Force Base, New Jer-
sey .................................................
$35,217,000
Naval Air Station, Pensacola, Flor-
ida .................................................
$2,750,000
Naval Station, Everett, Washington
$7,500,000
Naval Station, San Diego, California
$2,100,000
Naval Submarine Base, New Lon-
don, Connecticut ...........................
$2,300,000
Robins Air Force Base, Georgia ......
$19,000,000
Tinker Air Force Base, Oklahoma ...
$6,500,000
Wright-Patterson Air Force Base,
Ohio ..............................................
$2,750,000
National Security Agency ......
Fort Meade, Maryland .....................
$29,800,000
Special Operations Command
Eglin Auxiliary Field 3, Florida ......
$6,100,000
Fort Benning, Georgia .....................
$12,314,000
Fort Bragg, North Carolina .............
$1,500,000
Hurlburt Field, Florida ....................
$2,450,000
Naval Amphibious Base, Coronado,
California ......................................
$7,400,000
Total .....................................
$389,440,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 2405(a)(2), the Secretary of Defense may
acquire real property and carry out military construction
projects for the installations and locations outside the
533
United States, and in the amounts, set forth in the follow-
ing table:
Defense Agencies: Outside the United States
Agency
Installation or Location
Amount
Ballistic Missile Defense Or-
ganization.
Pacific Missile Range, Kwajalein
Atoll ..............................................
$4,565,000
Defense Logistics Agency ......
Defense Fuel Support Point, Guam
$16,000,000
Moron Air Base, Spain ....................
$14,400,000
Defense Medical Facilities
Office .................................
Andersen Air Force Base, Guam .....
$3,700,000
Total .........................................
$38,665,000
SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.
Using amounts appropriated pursuant to the author-
ization of appropriations in section 2405(a)(13)(A), the
Secretary of Defense may carry out architectural and en-
gineering services and construction design activities with
respect to the construction or improvement of military
family housing units in an amount not to exceed $50,000.
SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriation in section 2405(a)(12)(A),
the Secretary of Defense may improve existing military
family housing units in an amount not to exceed
$4,900,000.
SEC. 2404. ENERGY CONSERVATION PROJECTS.
Using amounts appropriated pursuant to the author-
ization of appropriations in section 2405(a)(10), the Sec-
534
retary of Defense may carry out energy conservation
projects under section 2865 of title 10, United States
Code.
SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DE-
FENSE AGENCIES.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1997, for military construction, land acquisition, and
military family housing functions of the Department of
Defense (other than the military departments), in the total
amount of $2,711,761,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2401(a),
$382,390,000
(2) For military construction projects outside
the United States authorized by section 2401(a),
$34,965,000.
(3) For military construction projects at Annis-
ton Army Depot, Alabama, ammunition demilitariza-
tion facility, authorized by section 2101(a) of the
Military Construction Authorization Act for Fiscal
Year 1993 (division B of the Public Law 102–484;
106 Stat. 2587), which was originally authorized as
an Army construction project, but which became a
Defense Agencies construction project by reason of
535
the amendments made by section 142 of the Na-
tional Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337; 108 Stat. 2689),
$9,900,000.
(4) For military construction projects at Walter
Reed Army Institute of Research, Maryland, hospital
replacement, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal
Year 1993 (division B of Public Law 102–484; 106
Stat. 2599), $20,000,000.
(5) For military construction projects at
Umatilla Army Depot, Oregon, authorized by section
2401(a) of the Military Construction Authorization
Act for Fiscal Year 1995 (division B of the Public
Law 103–337; 108 Stat. 3040), as amended by sec-
tion 2407 of the Military Construction Authorization
Act for Fiscal Year 1996 (110 Stat. 539) and sec-
tion 2407(2) of this Act, $57,427,000.
(6) For military construction projects at De-
fense Finance and Accounting Service, Columbus,
Ohio, authorized by section 2401(a) of the Military
Construction Authorization Act of Fiscal Year 1996
(division B of Public Law 104–106; 110 Stat. 535),
$14,200,000.
536
(7) For contingency construction projects of the
Secretary of Defense under section 2804 of title 10,
United States Code, $9,844,000.
(8) For unspecified minor construction projects
under section 2805 of title 10, United States Code,
$25,257,000.
(9) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $34,350,000.
(10) For Energy Conservation projects author-
ized by section 2403, $25,000,000.
(11) For base closure and realignment activities
as authorized by the Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of
Public Law 101–510; 10 U.S.C. 2687 note),
$2,060,854,000.
(12) For military family housing functions:
(A) For improvement and planning of mili-
tary family housing and facilities, $4,950,000.
(B) For support of military housing (in-
cluding functions described in section 2833 of
title 10, United States Code), $32,724,000 of
which not more than $27,673,000 may be obli-
gated or expended for the leasing of military
family housing units worldwide.
537
(b) LIMITATION OF TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variation author-
ized by section 2853 of title 10, United States Code, and
any other cost variations authorized by law, the total cost
of all projects carried out under section 2401 of this Act
may not exceed the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection (a).
SEC. 2406. CORRECTION IN AUTHORIZED USES OF FUNDS,
MCCLELLAN AIR FORCE BASE, CALIFORNIA.
In the case of amounts appropriated pursuant to the
authorization of appropriations in section 2405(a)(1) of
the Military Construction Authorization Act for Fiscal
Year 1995 (division B of Public Law 103–337; 108 Stat.
3041) for a military construction project involving the up-
grade of the hospital facility at McClellan Air Force Base,
California, the Secretary of Defense may use such
amounts for the following medical construction projects
authorized by section 2401 of this Act:
(1) The Aeromedical Clinic Addition at Ander-
sen Air Base, Guam, in the amount of $3,700,000.
(2) The Occupational Health Clinic Facility at
Tinker Air Force Base, Oklahoma, in the amount of
$6,500,000.
538
SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT
FISCAL YEAR 1995 PROJECTS.
The table in section 2401 of the Military Construc-
tion Authorization Act for Fiscal Year 1995 (division B
of Public Law 103–337; 108 Stat. 3040), as amended by
section 2407 of the Military Construction Authorization
Act for Fiscal Year 1996 (division B of Public Law 104–
106; 110 Stat. 539), under the agency heading relating
to Chemical Weapons and Munitions Destruction, is fur-
ther amended —
(1) in the item relating to Pine Bluff Arsenal,
Arkansas, by striking out ‘‘$115,000,000’’ in the
amount column and inserting in lieu thereof
‘‘$134,000,000’’; and
(2) in the item relating to Umatilla Army
Depot, Oregon, by striking out ‘‘$186,000,000’’ in
the amount column and inserting in lieu thereof
‘‘$187,000,000’’.
TITLE 
XXV—NORTH 
ATLANTIC
TREATY ORGANIZATION SE-
CURITY 
INVESTMENT 
PRO-
GRAM
SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND
ACQUISITION PROJECTS.
The Secretary of Defense may make contributions for
the North Atlantic Treaty Organization Security Invest-
552
(1) in paragraph (2), by striking out ‘‘para-
graph (3)’’ and inserting in lieu thereof ‘‘paragraphs
(3) and (4)’’;
(2) by redesignating paragraph (4) as para-
graph (5); and
(3) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4) The Secretary of the Army may lease not more
than eight housing units in the vicinity of Miami, Florida,
for key and essential personnel, as designated by the Sec-
retary, for the United States Southern Command for
which the expenditure for the rental of such units (includ-
ing the cost of utilities, maintenance, and operation, in-
cluding security enhancements) exceeds the expenditure
limitations in paragraphs (2) and (3). The total amount
for all leases under this paragraph may not exceed
$280,000 per year, and no lease on any individual housing
unit may exceed $60,000 per year.’’.
(b) CONFORMING AMENDMENT.—Paragraph (5) of
such section, as redesignated by subsection (a)(2), is
amended by striking out ‘‘paragraphs (2) and (3)’’ and
inserting in lieu thereof ‘‘paragraphs (2), (3), and (4)’’.
585
resources management plan prepared under subsection
(a)—
‘‘(1) shall, where appropriate and applicable,
provide for—
‘‘(A) fish and wildlife management, land
management, forest management, and fish and
wildlife-oriented recreation;
‘‘(B) fish and wildlife habitat enhancement
or modifications;
‘‘(C) wetland protection, enhancement, and
restoration, where necessary for support of fish
or wildlife;
‘‘(D) 
integration 
of, 
and 
consistency
among, the various activities conducted under
the plan;
‘‘(E) establishment of specific natural re-
source management objectives and time frames
for proposed action;
‘‘(F) sustained use by the public of natural
resources to the extent such use is not incon-
sistent with the needs of fish and wildlife re-
sources management;
‘‘(G) public access to the military installa-
tion that is necessary or appropriate for the use
described in subparagraph (F), subject to re-