Union Calendar No. 301
105TH CONGRESS
2D SESSION
H. R. 3616
[Report No. 105–532]
A BILL
To authorize appropriations for fiscal year 1999 for
military activities of the Department of Defense,
to prescribe military personnel strengths for fis-
cal year 1999, and for other purposes.
MAY 12, 1998
Reported with amendments, committed to the Committee
of the Whole House on the State of the Union, and or-
dered to be printed
IB
Union Calendar No. 301
105TH CONGRESS
2D SESSION
H. R. 3616
[Report No. 105–532]
To authorize appropriations for fiscal year 1999 for military activities of
the Department of Defense, to prescribe military personnel strengths
for fiscal year 1999, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 1, 1998
Mr. SPENCE (for himself and Mr. SKELTON) (both by request) introduced the
following bill; which was referred to the Committee on National Security
MAY 12, 1998
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on April 1, 1998]
A BILL
To authorize appropriations for fiscal year 1999 for military
activities of the Department of Defense, to prescribe
military personnel strengths for fiscal year 1999, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 1999’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows:
(1) Division A—Department of Defense Author-
izations.
(2) Division B—Military Construction Author-
izations.
(3) Division C—Department of Energy National
Security Authorizations and Other Authorizations.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
DIVISION A—DEPARTMENT OF DEFENSE
AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of Appropriations
Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.
Subtitle B—Army Programs
Sec. 111. Multiyear procurement authority for Longbow Hellfire missile program.
Sec. 112. M1A2 System Enhancement Program Step 1 Program.
Subtitle C—Navy Programs
Sec. 121. Multiyear procurement authority for the Department of the Navy.
Subtitle D—Other Matters
Sec. 141. Funding, transfer, and management of the Assembled Chemical Weap-
ons Assessment Program.
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION
Subtitle A—Authorization of Appropriations
Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Subtitle B—Program Requirements, Restrictions, and
Limitations
Sec. 211. Management responsibility for Navy mine countermeasures programs.
Sec. 212. Future aircraft carrier transition technologies.
Sec. 213. Manufacturing technology program.
Subtitle C—Ballistic Missile Defense
Sec. 231. National Missile Defense policy.
Sec. 232. Limitation on funding for the Medium Extended Air Defense System.
Sec. 233. Limitation on funding for cooperative ballistic missile defense pro-
grams.
Sec. 234. Limitation on funding for counterproliferation support.
Sec. 235. Ballistic Missile Defense program elements.
TITLE III—OPERATION AND MAINTENANCE
Subtitle A—Authorization of Appropriations
Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Refurbishment of M1–A1 tanks.
Sec. 306. Operation of prepositioned fleet, National Training Center, Fort Irwin,
California.
Sec. 307. Relocation of USS WISCONSIN.
Sec. 308. Fisher House Trust Funds.
Subtitle B—Information Technology Issues
Sec. 311. Additional information technology responsibilities of Chief Information
Officers.
Sec. 312. Defense-wide electronic mall system for supply purchases.
Sec. 313. Protection of funding provided for certain information technology and
national security programs.
Sec. 314. Priority funding to ensure year 2000 compliance of mission critical in-
formation technology and national security systems.
Sec. 315. Evaluation of year 2000 compliance as part of training exercises pro-
grams.
Subtitle C—Environmental Provisions
Sec. 321. Authorization to pay negotiated settlement for environmental cleanup at
former Department of Defense sites in Canada.
Sec. 322. Removal of underground storage tanks.
Subtitle D—Defense Infrastructure Support Improvement
Sec. 331. Reporting and study requirements before change of commercial and in-
dustrial type functions to contractor performance.
Sec. 332. Clarification of requirement to maintain Government-owned and Gov-
ernment-operated core logistics capability.
Sec. 333. Oversight of development and implementation of automated identifica-
tion technology.
Sec. 334. Conditions on expansion of functions performed under prime vendor
contracts.
Sec. 335. Clarification of definition of depot-level maintenance and repair.
Sec. 336. Clarification of commercial item exception to requirements regarding
core logistics capabilities.
Sec. 337. Development of plan for establishment of core logistics capabilities for
maintenance and repair of C–17 aircraft.
Sec. 338. Contractor-operated civil engineering supply stores program.
Sec. 339. Report on savings and effect of personnel reductions in Army Materiel
Command.
Subtitle E—Commissaries and Nonappropriated Fund
Instrumentalities
Sec. 341. Continuation of management and funding of Defense Commissary
Agency through the Office of the Secretary of Defense.
Sec. 342. Expansion of current eligibility of Reserves for commissary benefits.
Sec. 343. Repeal of requirement for Air Force to sell tobacco products to enlisted
personnel.
Sec. 344. Restrictions on patron access to, and purchases in, overseas com-
missaries and exchange stores.
Sec. 345. Extension of demonstration project for uniform funding of morale, wel-
fare, and recreation activities.
Sec. 346. Prohibition on consolidation or other organizational changes of Depart-
ment of Defense retail systems.
Sec. 347. Authorized use of appropriated funds for relocation of Navy Exchange
Service Command.
Sec. 348. Evaluation of merit of selling malt beverages and wine in commissary
stores as exchange system merchandise.
Subtitle F—Other Matters
Sec. 361. Eligibility requirements for attendance at Department of Defense do-
mestic dependent elementary and secondary schools.
Sec. 362. Specific emphasis of program to investigate fraud, waste, and abuse
within Department of Defense.
Sec. 363. Revision of inspection requirements relating to Armed Forces Retire-
ment Home.
Sec. 364. Assistance to local educational agencies that benefit dependents of mem-
bers of the Armed Forces and Department of Defense civilian
employees.
Sec. 365. Strategic plan for expansion of distance learning initiatives.
Sec. 366. Public availability of operating agreements between military installa-
tions and financial institutions.
Sec. 367. Department of Defense readiness reporting system.
Sec. 368. Travel by Reservists on carriers under contract with General Services
Administration.
Subtitle G—Demonstration of Commercial-Type Practices To
Improve Quality of Personal Property Shipments
Sec. 381. Demonstration program required.
Sec. 382. Goals of demonstration program.
Sec. 383. Program participants.
Sec. 384. Test plan.
Sec. 385. Other methods of personal property shipping.
Sec. 386. Duration of demonstration program.
Sec. 387. Evaluation of demonstration program.
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength levels.
Sec. 403. Date for submission of annual manpower requirements report.
Sec. 404. Extension of authority for Chairman of the Joint Chiefs of Staff to des-
ignate up to 12 general and flag officer positions to be excluded
from general and flag officer grade limitations.
Subtitle B—Reserve Forces
Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Increase in number of members in certain grades authorized to serve
on active duty in support of the Reserves.
Subtitle C—Authorization of Appropriations
Sec. 421. Authorization of appropriations for military personnel.
TITLE V—MILITARY PERSONNEL POLICY
Subtitle A—Officer Personnel Policy
Sec. 501. Codification of eligibility of retired officers and former officers for con-
sideration by special selection boards.
Sec. 502. Communication to promotion boards by officers under consideration.
Sec. 503. Procedures for separation of regular officers for substandard perform-
ance of duty or certain other reasons.
Sec. 504. Posthumous commissions and warrants.
Sec. 505. Tenure of Chief of the Air Force Nurse Corps.
Subtitle B—Reserve Component Matters
Sec. 511. Composition of selective early retirement boards of Reserve general and
flag officers of the Navy and Marine Corps.
Sec. 512. Active status service requirement for promotion consideration for Army
and Air Force Reserve component brigadier generals.
Sec. 513. Revision to educational requirement for promotion of Reserve officers.
Subtitle C—Military Education and Training
Sec. 521. Requirements relating to recruit basic training.
Sec. 522. After-hours privacy for recruits during basic training.
Sec. 523. Extension of reporting dates for Commission on Military Training and
Gender Related Issues.
Sec. 524. Improved oversight of innovative readiness training.
Subtitle D—Decorations, Awards, and Commendations
Sec. 531. Study of new decorations for injury or death in line of duty.
Sec. 532. Waiver of time limitations for award of certain decorations to specified
persons.
Sec. 533. Commendation of the Navy and Marine Corps personnel who served in
the United States Navy Asiatic Fleet from 1910–1942.
Sec. 534. Appreciation for service during World War I and World War II by
members of the Navy assigned on board merchant ships as the
Naval Armed Guard Service.
Sec. 535. Sense of Congress regarding the heroism, sacrifice, and service of the
military forces of South Vietnam and other nations in connec-
tion with the United States Armed Forces during the Vietnam
conflict.
Sec. 536. Sense of Congress regarding the heroism, sacrifice, and service of former
South Vietnamese commandos in connection with United States
Armed Forces during the Vietnam conflict.
Subtitle E—Administration of Agencies Responsible for Review
and Correction of Military Records
Sec. 541. Personnel freeze.
Sec. 542. Professional staff.
Sec. 543. Ex parte communications.
Sec. 544. Timeliness standards.
Subtitle F—Other Matters
Sec. 551. One-year extension of certain force drawdown transition authorities re-
lating to personnel management and benefits.
Sec. 552. Leave without pay for academy cadets and midshipmen.
Sec. 553. Provision for recovery, care, and disposition of the remains of all medi-
cally retired members.
Sec. 554. Continued eligibility under Voluntary Separation Incentive program
for members who involuntarily lose membership in a reserve
component.
Sec. 555. Definition of financial institution for direct deposit of pay.
Sec. 556. Increase in maximum amount for College Fund program.
Sec. 557. Central Identification Laboratory, Hawaii.
Sec. 558. Honor guard details at funerals of veterans.
Sec. 559. Applicability to all persons in chain of command of policy requiring
exemplary conduct by commanding officers and others in au-
thority in the Armed Forces.
Sec. 560. Report on prisoners transferred from United States Disciplinary Bar-
racks, Fort Leavenworth, Kansas, to Federal Bureau of Prisons.
Sec. 561. Report on process for selection of members for service on courts-martial.
Sec. 562. Study of revising the term of service of members of the United States
Court of Appeals for the Armed Forces.
Sec. 563. Status of cadets at the Merchant Marine Academy.
TITLE VI—COMPENSATION AND OTHER PERSONNEL
BENEFITS
Subtitle A—Pay and Allowances
Sec. 601. Increase in basic pay for fiscal year 1999.
Sec. 602. Basic allowance for housing outside the United States.
Sec. 603. Basic allowance for subsistence for Reserves.
Subtitle B—Bonuses and Special and Incentive Pays
Sec. 611. One-year extension of certain bonuses and special pay authorities for
reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay authorities for
nurse officer candidates, registered nurses, and nurse anes-
thetists.
Sec. 613. One-year extension of authorities relating to payment of other bonuses
and special pays.
Sec. 614. Aviation career incentive pay and aviation officer retention bonus.
Sec. 615. Special pay for diving duty.
Sec. 616. Selective reenlistment bonus eligibility for Reserve members performing
active Guard and Reserve duty.
Sec. 617. Removal of ten percent restriction on selective reenlistment bonuses.
Sec. 618. Increase in maximum amount of Army enlistment bonus.
Sec. 619. Equitable treatment of Reserves eligible for special pay for duty subject
to hostile fire or imminent danger.
Subtitle C—Travel and Transportation Allowances
Sec. 631. Exception to maximum weight allowance for baggage and household ef-
fects.
Sec. 632. Travel and transportation allowances for travel performed by members
in connection with rest and recuperative leave from overseas sta-
tions.
Sec. 633. Storage of baggage of certain dependents.
Subtitle D—Retired Pay, Survivor Benefits, and Related
Matters
Sec. 641. Effective date of former spouse survivor benefit coverage.
Subtitle E—Other Matters
Sec. 651. Deletion of Canal Zone from definition of United States possessions for
purposes of pay and allowances.
Sec. 652. Accounting of advance payments.
Sec. 653. Reimbursement of rental vehicle costs when motor vehicle transported at
Government expense is late.
Sec. 654. Education loan repayment program for certain health profession officers
serving in Selected Reserve.
TITLE VII—HEALTH CARE PROVISIONS
Subtitle A—Health Care Services
Sec. 701. Expansion of dependent eligibility under retiree dental program.
Sec. 702. Plan for provision of health care for military retirees and their depend-
ents comparable to health care provided under TRICARE Prime.
Sec. 703. Plan for redesign of military pharmacy system.
Sec. 704. Transitional authority to provide continued health care coverage for
certain persons unaware of loss of CHAMPUS eligibility.
Subtitle B—TRICARE Program
Sec. 711. Payment of claims for provision of health care under the TRICARE
program for which a third party may be liable.
Sec. 712. Procedures regarding enrollment in TRICARE Prime.
Subtitle C—Other Matters
Sec. 721. Inflation adjustment of premium amounts for dependents dental pro-
gram.
Sec. 722. System for tracking data and measuring performance in meeting
TRICARE access standards.
Sec. 723. Air Force research, development, training, and education on exposure
to chemical, biological, and radiological hazards.
Sec. 724. Authorization to establish a Level 1 Trauma Training Center.
Sec. 725. Report on implementation of enrollment-based capitation for funding
for military medical treatment facilities.
TITLE VIII—ACQUISITION POLICY, ACQUISITION
MANAGEMENT, AND RELATED MATTERS
Sec. 801. Limitation on procurement of ammunition and components.
Sec. 802. Acquisition Corps eligibility.
Sec. 803. Amendments relating to procurement from firms in industrial base for
production of small arms.
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND
MANAGEMENT
Sec. 901. Further reductions in defense acquisition workforce.
Sec. 902. Limitation on operation and support funds for the Office of the Sec-
retary of Defense.
Sec. 903. Revision to defense directive relating to management headquarters and
headquarters support activities.
Sec. 904. Under Secretary of Defense for Policy to have responsibility with re-
spect to export control activities of the Department of Defense.
Sec. 905. Independent task force on transformation and Department of Defense
organization.
Sec. 906. Improved accounting for defense contract services.
Sec. 907. Repeal of requirement relating to assignment of tactical airlift mission
to reserve components.
Sec. 908. Repeal of certain requirements relating to Inspector General investiga-
tions of reprisal complaints.
Sec. 909. Consultation with Commandant of the Marine Corps regarding Marine
Corps aviation.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Outlay limitations.
Subtitle B—Naval Vessels and Shipyards
Sec. 1011. Revision to requirement for continued listing of two Iowa-class battle-
ships on the Naval Vessel Register.
Sec. 1012. Transfer of USS NEW JERSEY.
Sec. 1013. Long-term charter of three vessels in support of submarine rescue, es-
cort, and towing.
Sec. 1014. Transfer of obsolete Army tugboat.
Sec. 1015. Long-term charter contracts for acquisition of auxiliary vessels for the
Department of Defense.
Subtitle C—Matters Relating to Counter Drug Activities
Sec. 1021. Department of Defense support for counter-drug activities.
Sec. 1022. Support for counter-drug operation Caper Focus.
Subtitle D—Miscellaneous Report Requirements and Repeals
Sec. 1031. Annual report on resources allocated to support and mission activities.
Subtitle E—Other Matters
Sec. 1041. Clarification of land conveyance authority, Armed Forces Retirement
Home, District of Columbia.
Sec. 1042. Content of notice required to be provided garnishees before garnishment
of pay or benefits.
Sec. 1043. Training of special operations forces with friendly foreign forces.
TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN
PERSONNEL
Sec. 1101. Authority for release to Coast Guard of drug test results of civil service
mariners of the Military Sealift Command.
Sec. 1102. Limitations on back pay awards.
Sec. 1103. Restoration of annual leave accumulated by civilian employees at in-
stallations in the Republic of Panama to be closed pursuant to
the Panama Canal Treaty of 1977.
Sec. 1104. Repeal of program providing preference for employment of military
spouses in military child care facilities.
Sec. 1105. Elimination of retained pay as basis for determining locality-based
adjustments.
Sec. 1106. Observance of certain holidays at duty posts outside the United States.
TITLE XII—MATTERS RELATING TO OTHER NATIONS
Sec. 1201. Limitation on funds for peacekeeping in the Republic of Bosnia and
Herzegovina.
Sec. 1202. Reports on the mission of United States forces in Republic of Bosnia
and Herzegovina.
Sec. 1203. Report on military capabilities of an expanded NATO alliance.
Sec. 1204. One-year extension of counterproliferation authorities for support of
United Nations Special Commission on Iraq.
Sec. 1205. Repeal of landmine moratorium.
TITLE XIII—COOPERATIVE THREAT REDUCTION WITH
STATES OF FORMER SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction facility.
Sec. 1305. Limitation on obligation of funds for a specified period.
Sec. 1306. Requirement to submit breakdown of amounts requested by project cat-
egory.
Sec. 1307. Limitation on use of funds until completion of fiscal year 1998 re-
quirements.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Limitation on use of funds for biological weapons proliferation preven-
tion activities in Russia.
Sec. 1310. Limitation on use of certain funds for strategic arms elimination in
Russia or Ukraine.
Sec. 1311. Availability of funds.
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS
Sec. 2001. Short title.
TITLE XXI—ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Increase in fiscal year 1998 authorization for military construction
projects at Fort Drum, New York, and Fort Sill, Oklahoma.
TITLE XXII—NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization to accept road construction project, Marine Corps Base,
Camp Lejeune, North Carolina.
TITLE XXIII—AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
TITLE XXIV—DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Increase in fiscal year 1995 authorization for military construction
projects at Pine Bluff Arsenal, Arkansas, and Umatilla Army
Depot, Oregon.
Sec. 2406. Increase in fiscal year 1990 authorization for military construction
project at Portsmouth Naval Hospital, Virginia.
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION
SECURITY INVESTMENT PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land acquisition
projects.
Sec. 2602. Army Reserve construction project, Salt Lake City, Utah.
TITLE XXVII—EXPIRATION AND EXTENSION OF
AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be specified by
law.
Sec. 2702. Extension of authorizations of certain fiscal year 1996 projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.
TITLE XXVIII—GENERAL PROVISIONS
Subtitle A—Military Construction Program and Military
Family Housing Changes
Sec. 2801. Definition of ancillary supporting facilities under the alternative au-
thority for acquisition and improvement of military housing.
Subtitle B—Real Property and Facilities Administration
Sec. 2811. Restoration of Department of Defense lands used by another Federal
agency.
Sec. 2812. Outdoor recreation development on military installations for disabled
veterans, military dependents with disabilities, and other per-
sons with disabilities.
Sec. 2813. Report on use of utility system conveyance authority.
Subtitle C—Defense Base Closure and Realignment
Sec. 2821. Payment of stipulated penalties assessed under the Comprehensive En-
vironmental Response, Compensation, and Liability Act of 1980
in connection with McClellan Air Force Base, California.
Sec. 2822. Elimination of waiver authority regarding prohibition against certain
conveyances of property at Naval Station, Long Beach, Califor-
nia.
Subtitle D—Land Conveyances
PART I—ARMY CONVEYANCES
Sec. 2831. Land conveyance, Army Reserve Center, Massena, New York.
Sec. 2832. Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec. 2833. Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec. 2834. Land conveyance, Stewart Army Sub-Post, New Windsor, New York.
Sec. 2835. Land conveyance, Indiana Army Ammunition Plant, Charlestown, In-
diana.
Sec. 2836. Land conveyance, Volunteer Army Ammunition Plant, Chattanooga,
Tennessee.
Sec. 2837. Release of reversionary interest of United States in former Redstone
Army Arsenal property conveyed to Alabama Space Science Ex-
hibit Commission.
PART II—NAVY CONVEYANCES
Sec. 2841. Easement, Marine Corps Base, Camp Pendleton, California.
Sec. 2842. Land conveyance, Naval Reserve Readiness Center, Portland, Maine.
PART III—AIR FORCE CONVEYANCES
Sec. 2851. Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec. 2852. Land conveyance, Air Force housing facility, La Junta, Colorado.
Subtitle E—Other Matters
Sec. 2861. Repeal of prohibition on joint use of Gray Army Airfield, Fort Hood,
Texas, with civil aviation.
Sec. 2862. Designation of building containing Navy and Marine Corps Reserve
Center, Augusta, Georgia.
Sec. 2863. Expansion of Arlington National Cemetery.
Sec. 2864. Reporting requirements under demonstration project for purchase of
fire, security, police, public works, and utility services from local
government agencies.
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECU-
RITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL
SECURITY PROGRAMS
Subtitle A—National Security Programs Authorizations
Sec. 3101. Weapons activities.
Sec. 3102. Defense environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Subtitle B—Recurring General Provisions
Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction activities.
Sec. 3127. Funds available for all national security programs of the Department
of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.
Subtitle C—Program Authorizations, Restrictions, and
Limitations
Sec. 3131. Prohibition on Federal loan guarantees for defense environmental
management privatization projects.
Sec. 3132. Extension of funding prohibition relating to international cooperative
stockpile stewardship.
Sec. 3133. Use of certain funds for missile defense technology development.
Sec. 3134. Selection of technology for tritium production.
Sec. 3135. Limitation on use of certain funds at Hanford Site.
Subtitle D—Other Matters
Sec. 3151. Termination of worker and community transition assistance.
Sec. 3152. Requirement for plan to modify employment system used by Depart-
ment of Energy in defense environmental management pro-
grams.
Sec. 3153. Report on stockpile stewardship criteria.
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY
BOARD
Sec. 3201. Authorization.
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE
Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
TITLE XXXIV—NAVAL PETROLEUM RESERVES
Sec. 3401. Definitions.
Sec. 3402. Authorization of appropriations.
Sec. 3403. Price requirement on sale of certain petroleum during fiscal year 1999.
Sec. 3404. Disposal of Naval Petroleum Reserve Numbered 2.
Sec. 3405. Disposal of Naval Petroleum Reserve Numbered 3.
Sec. 3406. Disposal of Oil Shale Reserve Numbered 2.
Sec. 3407. Administration.
TITLE XXXV—PANAMA CANAL COMMISSION
Sec. 3501. Short title; references to Panama Canal Act of 1979.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
Sec. 3505. Donations to the Commission.
Sec. 3506. Sunset of United States overseas benefits just before transfer.
Sec. 3507. Central Examining Office.
Sec. 3508. Liability for vessel accidents.
Sec. 3509. Panama Canal Board of Contract Appeals.
Sec. 3510. Technical amendments.
TITLE XXXVI—MARITIME ADMINISTRATION
Sec. 3601. Authorization of appropriations for fiscal year 1999.
Sec. 3602. Conveyance of NDRF vessel M/V BAYAMON.
Sec. 3603. Conveyance of NDRF vessels BENJAMIN ISHERWOOD and HENRY
ECKFORD.
Sec. 3604. Clearinghouse for maritime information.
Sec. 3605. Conveyance of NDRF vessel ex-USS LORAIN COUNTY.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on National Security and the
Committee on Appropriations of the House of Rep-
resentatives.
DIVISION A—DEPARTMENT OF
DEFENSE AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of
Appropriations
SEC. 101. ARMY.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for procurement for the Army as follows:
(1) For aircraft, $1,420,759,000.
(2) For missiles, $1,232,285,000.
(3) For weapons and tracked combat vehicles,
$1,507,638,000.
(4) For ammunition, $1,053,455,000.
(5) For other procurement, $3,136,918,000.
SEC. 102. NAVY AND MARINE CORPS.
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 1999 for procurement for the Navy
as follows:
(1) For aircraft, $7,420,847,000.
(2) For weapons, including missiles and tor-
pedoes, $1,192,195,000.
(3) 
For 
shipbuilding 
and 
conversion,
$5,992,361,000.
(4) For other procurement, $3,969,507,000.
(b) MARINE CORPS.—Funds are hereby authorized to
be appropriated for fiscal year 1999 for procurement for
the Marine Corps in the amount of $691,868,000.
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds
are hereby authorized to be appropriated for procurement
of ammunition for the Navy and the Marine Corps in the
amount of $451,968,000.
SEC. 103. AIR FORCE.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for procurement for the Air Force as follows:
(1) For aircraft, $8,219,077,000.
(2) For missiles, $2,234,668,000.
(3) For ammunition, $383,627,000.
(4) For other procurement, $7,046,372,000.
SEC. 104. DEFENSE-WIDE ACTIVITIES.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for Defense-wide procurement in the amount
of $1,962,866,000.
SEC. 105. RESERVE COMPONENTS.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for procurement of aircraft, vehicles, commu-
nications equipment, and other equipment for the reserve
components of the Armed Forces as follows:
(1) For the Army National Guard, $50,000,000.
(2) For the Air National Guard, $50,000,000.
(3) For the Army Reserve, $50,000,000.
(4) For the Naval Reserve, $50,000,000.
(5) For the Air Force Reserve, $50,000,000.
(6) For the Marine Corps Reserve, $50,000,000.
SEC. 106. DEFENSE INSPECTOR GENERAL.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for procurement for the Inspector General of
the Department of Defense in the amount of $1,300,000.
SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.
There is hereby authorized to be appropriated for fiscal
year 1999 the amount of $834,000,000 for—
(1) the destruction of lethal chemical agents and
munitions in accordance with section 1412 of the De-
partment of Defense Authorization Act, 1986 (50
U.S.C. 1521); and
(2) the destruction of chemical warfare materiel
of the United States that is not covered by section
1412 of such Act.
SEC. 108. DEFENSE HEALTH PROGRAMS.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for the Department of Defense for procure-
ment for carrying out health care programs, projects, and
activities of the Department of Defense in the total amount
of $402,387,000.
SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for the Department of Defense for carrying
out the Defense Export Loan Guarantee Program under sec-
tion 2540 of title 10, United States Code, in the total
amount of $1,250,000.
Subtitle B—Army Programs
SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR
LONGBOW HELLFIRE MISSILE PROGRAM.
Beginning with the fiscal year 1999 program year, the
Secretary of the Army may, in accordance with section
2306b of title 10, United States Code, enter into a
multiyear procurement contract for procurement of the
AGM–114 Longbow Hellfire missile.
SEC. 112. M1A2 SYSTEM ENHANCEMENT PROGRAM STEP 1
PROGRAM.
Of the funds authorized to be appropriated for the
Army in section 101 for weapons and tracked combat vehi-
cles, $20,300,000 shall be available only for the Step 1 pro-
gram for the M1A2 System Enhancement Program.
Subtitle C—Navy Programs
SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR THE
DEPARTMENT OF THE NAVY.
(a) AUTHORITY FOR SPECIFIED NAVY AIRCRAFT PRO-
GRAMS.—Beginning with the fiscal year 1999 program
year, the Secretary of the Navy may, in accordance with
section 2306b of title 10, United States Code, enter into a
multiyear procurement contract for procurement for the fol-
lowing programs:
(1) The AV–8B aircraft program.
(2) The T–45TS aircraft program.
(3) The E–2C aircraft program.
(b) AUTHORITY FOR MARINE CORPS MEDIUM TAC-
TICAL VEHICLE REPLACEMENT.—Beginning with the fiscal
year 1999 program year, the Secretary of the Navy may,
in accordance with section 2306b of title 10, United States
Code, enter into a multiyear procurement contract to pro-
cure the Marine Corps Medium Tactical Vehicle Replace-
ment.
program and shall submit to Congress a report on such plan
(including information on the cost of, and schedule for, im-
plementing the pilot program).
(d) MANAGEMENT OF PROGRAM.—The Program shall
be managed independently of the baseline incineration pro-
gram until the pilot program is completed.
(e) DEFINITION.—In this section, the term ‘‘Assembled
Chemical Weapons Assessment Program’’ means the pro-
gram established in section 152(e) of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104–
106; 110 Stat. 214; 50 U.S.C. 1521), and section 8065 of
the Department of Defense Appropriations Act, 1997 (as
contained in section 101 of Public Law 104–208; 110 Stat.
3009–101), for identifying and demonstrating alternatives
to the baseline incineration process for the demilitarization
of assembled chemical munitions.
TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION
Subtitle A—Authorization of
Appropriations
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for the use of the Department of Defense for
research, development, test, and evaluation as follows:
(1) For the Army, $4,791,997,000.
(2) For the Navy, $8,377,059,000.
(3) For the Air Force, $13,785,401,000.
(4) For Defense-wide activities, $9,283,515,000,
of which—
(A) $251,106,000 is authorized for the ac-
tivities of the Director, Test and Evaluation; and
(B) $29,245,000 is authorized for the Direc-
tor of Operational Test and Evaluation.
SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.
(a) FISCAL YEAR 1999.—Of the amounts authorized
to be appropriated by section 201, $3,078,251,000 shall be
available for basic research and applied research projects.
(b) BASIC RESEARCH AND APPLIED RESEARCH DE-
FINED.—For purposes of this section, the term ‘‘basic re-
search and applied research’’ means work funded in pro-
gram elements for defense research and development under
Department of Defense category 6.1 or 6.2.
Subtitle B—Program Requirements,
Restrictions, and Limitations
SEC. 211. MANAGEMENT RESPONSIBILITY FOR NAVY MINE
COUNTERMEASURES PROGRAMS.
Section 216(a) of the National Defense Authorization
Act for Fiscal Years 1992 and 1993 (Public Law 102–190;
105 Stat. 1317, as amended) is amended by striking out
‘‘through 1999’’ and inserting in lieu thereof ‘‘through
2003’’.
SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECH-
NOLOGIES.
Of the funds authorized to be appropriated under sec-
tion 201(2) for Carrier System Development (program ele-
ment 0603512N), $50,000,000 shall be available for re-
search, development, test, evaluation, and insertion into the
CVN–77 nuclear aircraft carrier program of technologies
designed to transition to, demonstrate enhanced capabilities
for, or mitigate cost and technical risks of, the CV(X) air-
craft carrier program.
SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.
(a) REQUIREMENTS RELATING TO COMPETITION.—
Section 2525(d)(1) of title 10, United States Code, is
amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) For each grant awarded and each contract, coop-
erative agreement, or other transaction entered into on a
cost-share basis under the program, the ratio of contract
recipient cost to Government cost shall be determined by
competitive procedures. For a project for which the Govern-
ment receives an offer from only one offeror, the contracting
officer shall negotiate the ratio of contract recipient cost to
Government cost that represents the best value to the Gov-
ernment.’’.
(b) REQUIREMENTS RELATING TO COST SHARE WAIV-
ERS.—Section 2525(d)(2) of such title is amended—
(1) by redesignating subparagraphs (A), (B),
and (C) as clauses (i), (ii), and (iii), respectively;
(2) by inserting ‘‘(A)’’ after ‘‘(2)’’; and
(3) by adding at the end the following new sub-
paragraphs:
‘‘(B) For any grant awarded or contract, cooperative
agreement, or other transaction entered into on a basis
other than a cost-sharing basis because of a determination
made under subparagraph (A), the transaction file for the
project concerned must document the rationale for the deter-
mination.
‘‘(C) The Secretary of Defense may delegate the author-
ity to make determinations under subparagraph (A) only
to the Under Secretary of Defense for Acquisition and Tech-
nology or a service acquisition executive, as appropriate.’’.
(c) COST SHARE GOAL.—Section 2525(d) of such title
is amended—
(1) by striking out paragraph (4); and
(2) in paragraph (3)—
(A) by striking out ‘‘At least’’ and inserting
in lieu thereof ‘‘As a goal, at least’’;
(B) by striking out ‘‘shall’’ and inserting in
lieu thereof ‘‘should’’; and
(C) by adding at the end the following:
‘‘The Secretary of Defense, in coordination with
the Secretaries of the military departments and
upon recommendation of the Under Secretary of
Defense for Acquisition and Technology, shall es-
tablish annual objectives to meet such goal.’’.
(d) ADDITIONAL INFORMATION TO BE INCLUDED IN
FIVE-YEAR PLAN.—Section 2525(e)(1) of such title is
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking the period at the end of subpara-
graph (B) and inserting ‘‘; and’’; and
(3) by inserting at the end the following new
subparagraph:
‘‘(C) the extent of cost sharing in the manufac-
turing technology program by companies in the pri-
vate sector, weapons system program offices and other
defense program offices, Federal agencies other than
the Department of Defense, nonprofit institutions and
universities, and other sources.’’.
Subtitle C—Ballistic Missile
Defense
SEC. 231. NATIONAL MISSILE DEFENSE POLICY.
(a) FINDINGS.—Congress makes the following findings:
(1) Threats posed by ballistic missiles and weap-
ons of mass destruction to the national territory of
the United States continue to grow as the trend in
ballistic missile proliferation and development is to-
ward longer range and increasingly sophisticated
missiles.
(2) Russian and Chinese sources continue to pro-
liferate missile and other advanced technologies.
(3) North Korea is developing the Taepo-Dong 2
missile, which would have a range sufficient to strike
Alaska and Hawaii, and other countries hostile to the
United States, including Iran, Libya, and Iraq, have
demonstrated an interest in acquiring or developing
ballistic missiles capable of reaching the United
States.
(4) Russia’s increased reliance on nuclear forces
to compensate for the decline of its conventional forces
and uncertainty regarding command and control of
those nuclear forces increase the possibility of an acci-
dental or unauthorized launch of Russian ballistic
missiles.
(5) The United States could be deterred from ef-
fectively promoting or protecting its national interests
around the world if any State or territory of the
United States is vulnerable to long-range ballistic
missiles deployed by nations hostile to the United
States.
(b) SENSE OF CONGRESS CONCERNING NATIONAL MIS-
SILE DEFENSE POLICY.—It is the sense of Congress that—
(1) any national missile defense system deployed
by the United States must provide effective defense
against limited, accidental, or unauthorized ballistic
missile attack for all 50 States; and
(2) the territories of the United States should be
afforded effective protection against ballistic missile
attack.
SEC. 232. LIMITATION ON FUNDING FOR THE MEDIUM EX-
TENDED AIR DEFENSE SYSTEM.
None of the funds appropriated for fiscal year 1999
for the Ballistic Missile Defense Organization may be obli-
gated for the Medium Extended Air Defense System
(MEADS) until the Secretary of Defense certifies to Con-
gress that the future-years defense plan includes sufficient
programmed funding for that system to complete the design
and development phase. If the Secretary does not submit
such a certification by January 1, 1999, then (effective as
of that date) the funds appropriated for fiscal year 1999
for the Ballistic Missile Defense Organization that are allo-
cated for the MEADS program shall be available to support
modification of the Patriot Advanced Capability–3, Con-
figuration 3, so as to support the requirement for mobile
theater missile defense to be met by the MEADS system.
SEC. 233. LIMITATION ON FUNDING FOR COOPERATIVE
BALLISTIC MISSILE DEFENSE PROGRAMS.
Of the funds appropriated for fiscal year 1999 for the
Russian-American Observational Satellite (RAMOS) pro-
gram, $5,000,000 may not be obligated until the Secretary
of Defense certifies to Congress that the Department of De-
fense has received detailed information concerning the na-
ture, extent, and military implications of the transfer of
ballistic missile technology from Russian sources to Iran.
SEC. 
234. 
LIMITATION 
ON 
FUNDING 
FOR
COUNTERPROLIFERATION SUPPORT.
None of the funds appropriated for fiscal year 1999
for counterproliferation support in Program Element
63160BR may be obligated until the Secretary of Defense
submits to Congress the report required by section 234 of
the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 1664; 50 U.S.C. 2367)
to be submitted not later than January 30, 1998.
SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELE-
MENTS.
(a) BMD PROGRAM ELEMENTS.—(1) Chapter 9 of title
10, United States Code, is amended by inserting after sec-
tion 222 the following new section:
‘‘§ 223. Ballistic missile defense programs
‘‘(a) PROGRAM ELEMENTS SPECIFIED.—In the budget
justification materials submitted to Congress in support of
the Department of Defense budget for any fiscal year (as
submitted with the budget of the President under section
1105(a) of title 31), the amount requested for activities of
the Ballistic Missile Defense Organization shall be set forth
in accordance with the following program elements:
‘‘(1) The Patriot system.
‘‘(2) The Navy Area system.
‘‘(3) The Theater High-Altitude Area Defense
system.
‘‘(4) The Navy Theater Wide system.
‘‘(5) The Medium Extended Air Defense System.
‘‘(6) Joint Theater Missile Defense.
‘‘(7) National Missile Defense.
‘‘(8) Support Technologies.
‘‘(9) Family of Systems Engineering and Inte-
gration.
‘‘(10) Ballistic Missile Defense Technical Oper-
ations.
‘‘(11) Threat and Countermeasures.
‘‘(12) International Cooperative Programs.
‘‘(b) TREATMENT OF MAJOR DEFENSE ACQUISITION
PROGRAMS.—Amounts requested for Theater Missile De-
fense and National Missile Defense major defense acquisi-
tion programs shall be specified in individual, dedicated
program elements, and amounts appropriated for those pro-
grams shall be available only for Ballistic Missile Defense
activities.
‘‘(c) MANAGEMENT AND SUPPORT.—The amount re-
quested for each program element specified in subsection (a)
shall include requests for the amounts necessary for the
management and support of the programs, projects, and ac-
tivities contained in that program element.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
222 the following new item:
‘‘223. Ballistic missile defense programs.’’.
(b) REPEAL
OF SUPERSEDED PROVISION.—Section
251 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104–106; 10 U.S.C. 221 note) is
repealed.
TITLE III—OPERATION AND
MAINTENANCE
Subtitle A—Authorization of
Appropriations
SEC. 301. OPERATION AND MAINTENANCE FUNDING.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for ex-
penses, not otherwise provided for, for operation and main-
tenance, in amounts as follows:
(1) For the Army, $16,339,700,000.
(2) For the Navy, $21,839,328,000.
(3) For the Marine Corps, $2,539,703,000.
(4) For the Air Force, $18,816,108,000.
(5) For Defense-wide activities, $10,354,216,000.
(6) For the Army Reserve, $1,197,622,000.
(7) For the Naval Reserve, $948,639,000.
(8) For the Marine Corps Reserve, $116,993,000.
(9) For the Air Force Reserve, $1,747,696,000.
(10) 
For 
the 
Army 
National 
Guard,
$2,464,815,000.
(11) 
For 
the 
Air 
National 
Guard,
$3,096,933,000.
(12) 
For 
the 
Defense 
Inspector 
General,
$130,764,000.
(13) For the United States Court of Appeals for
the Armed Forces, $7,324,000.
(14) For Environmental Restoration, Army,
$377,640,000.
(15) For Environmental Restoration, Navy,
$281,600,000.
(16) For Environmental Restoration, Air Force,
$379,100,000.
(17) For Environmental Restoration, Defense-
wide, $26,091,000.
(18) For Environmental Restoration, Formerly
Used Defense Sites, $195,000,000.
(19) For Overseas Humanitarian, Disaster, and
Civic Aid programs, $47,311,000.
(20) For Drug Interdiction and Counter-drug
Activities, Defense-wide, $727,582,000.
(21) For the Kaho’olawe Island Conveyance, Re-
mediation, and Environmental Restoration Trust
Fund, $15,000,000.
(22) 
For 
Defense 
Health 
Program,
$9,663,035,000.
(23) Former Soviet Union Threat Reduction
programs, $417,400,000.
(24) For Overseas Contingency Operations
Transfer Fund, $746,900,000.
SEC. 302. WORKING CAPITAL FUNDS.
Funds are hereby authorized to be appropriated for fis-
cal year 1999 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds
in amounts as follows:
(1) For the Defense Working Capital Funds,
$1,076,571,000.
(2) For the National Defense Sealift Fund,
$669,566,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fiscal
year 1999 from the Armed Forces Retirement Home Trust
Fund the sum of $70,745,000 for the operation of the Armed
Forces Retirement Home, including the United States Sol-
diers’ and Airmen’s Home and the Naval Home.
SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE
TRANSACTION FUND.
(a) TRANSFER AUTHORITY.—To the extent provided in
appropriations Acts, not more than $150,000,000 is author-
ized to be transferred from the National Defense Stockpile
Transaction Fund to operation and maintenance accounts
for fiscal year 1999 in amounts as follows:
(1) For the Army, $50,000,000.
(2) For the Navy, $50,000,000.
(3) For the Air Force, $50,000,000.
(b) TREATMENT
OF TRANSFERS.—Amounts trans-
ferred under this section—
(1) shall be merged with, and be available for the
same purposes and the same period as, the amounts
in the accounts to which transferred; and
(2) may not be expended for an item that has
been denied authorization of appropriations by Con-
gress.
(c) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The transfer authority provided in this section is in
addition to the transfer authority provided in section 1001.
SEC. 305. REFURBISHMENT OF M1–A1 TANKS.
Of the amount authorized to be appropriated pursuant
to section 301(1) for operation and maintenance for the
Army, $31,000,000 shall be available only for the refurbish-
ment of up to 70 M1–A1 tanks under the AIM-XXI pro-
gram.
SEC. 306. OPERATION OF PREPOSITIONED FLEET, NA-
TIONAL TRAINING CENTER, FORT IRWIN,
CALIFORNIA.
Of the amount authorized to be appropriated pursuant
to section 301(1) for operation and maintenance for the
Army, $60,200,000 shall be available only to pay costs asso-
ciated with the operation of the prepositioned fleet of equip-
ment during training rotations at the National Training
Center, Fort Irwin, California.
SEC. 307. RELOCATION OF USS WISCONSIN.
Of the amount authorized to be appropriated pursuant
to section 301(2) for operation and maintenance for the
Navy, $6,000,000 may be available for the purpose of relo-
cating the USS WISCONSIN, which is currently in a re-
serve status at the Norfolk Naval Shipyard, Virginia, to a
suitable location in order to increase available berthing
space at the shipyard.
SEC. 308. FISHER HOUSE TRUST FUNDS.
Funds are hereby authorized to be appropriated for fis-
cal year 1999, out of funds in Fisher House Trust Funds
not otherwise appropriated, for the operation of Fisher
houses described in section 2221(d) of title 10, United States
Code, as follows:
(1) From the Fisher House Trust Fund, Depart-
ment of the Army, $250,000 for Fisher houses that are
located in proximity to medical treatment facilities of
the Army.
(2) From the Fisher House Trust Fund, Depart-
ment of the Navy, $150,000 for Fisher houses that are
located in proximity to medical treatment facilities of
the Navy.
(3) From the Fisher House Trust Fund, Depart-
ment of the Air Force, $150,000 for Fisher houses that
are located in proximity to medical treatment facili-
ties of the Air Force.
Subtitle B—Information Technology
Issues
SEC. 311. ADDITIONAL INFORMATION TECHNOLOGY RE-
SPONSIBILITIES OF CHIEF INFORMATION OF-
FICERS.
(a) IN GENERAL.—(1) Chapter 131 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 2223. Information technology: additional respon-
sibilities of Chief Information Officers
‘‘(a) ADDITIONAL RESPONSIBILITIES.—In addition to
the responsibilities provided for in chapter 35 of title 44
and in section 5125 of the Clinger-Cohen Act of 1996 (40
U.S.C. 1425)—
‘‘(1) the Chief Information Officer of the Depart-
ment of Defense, with respect to the elements of the
Department of Defense other than the military de-
partments, shall—
‘‘(A) review and provide recommendations
to the Secretary of Defense on Department of De-
fense budget requests for information technology
and national security systems;
‘‘(B) ensure the interoperability of informa-
tion technology and national security systems
throughout the Department of Defense; and
‘‘(C) ensure that information technology
and national security systems standards that
will apply throughout the Department of Defense
are prescribed; and
‘‘(2) the Chief Information Officer of each mili-
tary department, with respect to the military depart-
ment concerned, shall—
‘‘(A) review budget requests for all informa-
tion technology and national security systems;
‘‘(B) ensure that information technology
and national security systems are in compliance
with standards of the Government and the De-
partment of Defense;
‘‘(C) ensure that information technology
and national security systems are interoperable
with other relevant information technology and
national security systems of the Government and
the Department of Defense;
‘‘(D) provide for the elimination of dupli-
cate information technology and national secu-
rity systems within and between the military de-
partments and Defense Agencies; and
‘‘(E) coordinate with the Joint Staff with
respect to information technology and national
security systems.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) The term ‘Chief Information Officer’ means
the senior official designated by the Secretary of De-
fense or a Secretary of a military department pursu-
ant to section 3506 of title 44.
‘‘(2) The term ‘information technology’ has the
meaning given that term by section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
‘‘(3) The term ‘national security system’ has the
meaning given that term by section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘2223. Information technology: additional responsibilities of Chief Information
Officers.’’.
(b) EFFECTIVE DATE.—Section 2223 of title 10,
United States Code, as added by subsection (a), shall take
effect on October 1, 1998.
SEC. 312. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR
SUPPLY PURCHASES.
(a) ELECTRONIC MALL SYSTEM.—In this section, the
term ‘‘electronic mall system’’ means an electronic system
for displaying, ordering, and purchasing supplies and ma-
teriel available from sources within the Department of De-
fense and from the private sector.
(b) DEVELOPMENT AND MANAGEMENT.—Using exist-
ing systems and technology available in the Department of
Defense, the Defense Logistics Agency shall develop a single,
defense-wide electronic mall system. The Defense Logistics
Agency shall be responsible for the management of the re-
sulting electronic mall system. The Secretary of each mili-
tary department and the head of each Defense Agency shall
provide to the Defense Logistics Agency the necessary and
requested data to support the development and operation
of the electronic mall system.
(c) IMPLEMENTATION DATE.—The electronic mall sys-
tem shall be operational and available throughout the De-
partment of Defense not later than June 1, 1999. After that
date, a military department or Defense Agency (other than
the Defense Logistics Agency) may not develop or operate
an electronic mall system.
SEC. 
313. 
PROTECTION 
OF 
FUNDING 
PROVIDED 
FOR
CERTAIN INFORMATION TECHNOLOGY AND
NATIONAL SECURITY PROGRAMS.
(a) USE FOR SPECIFIED PURPOSES.—Of the amounts
authorized to be appropriated to the Department of Defense
for fiscal years 1999, 2000, and 2001 for information tech-
nology and national security programs of the Department
of Defense, not less than the amount specified in subsection
(b) shall be available for each such fiscal year for the pur-
poses of the information technology and national security
programs described in such subsection, unless an alternative
use of the funds is specifically approved by a law enacted
after the date of the enactment of the law originally author-
izing the funds.
(b) COVERED PROGRAMS AND AMOUNTS.—The infor-
mation technology and national security programs referred
to in subsection (a), and the amounts to be available for
each program, are the following:
(1) The Force XXI program of the Army,
$360,000,000.
(2) The Information Technology for the 21st
Century programs of the Navy, $472,000,000.
(3) The Communications Infrastructure pro-
grams of the Air Force, $228,500,000.
(4) The Telecom and Computing Infrastructure
programs of the Marine Corps, $93,000,000.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
(2) The term ‘‘national security system’’ has the
meaning given that term in section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).
SEC. 314. PRIORITY FUNDING TO ENSURE YEAR 2000 COM-
PLIANCE OF MISSION CRITICAL INFORMA-
TION TECHNOLOGY AND NATIONAL SECURITY
SYSTEMS.
(a) FUNDS FOR COMPLETION OF YEAR 2000 CONVER-
SION.—(1) Of the amounts authorized to be appropriated
pursuant to this Act for information technology and na-
tional security systems of the Department of Defense des-
ignated as mission critical, not more than 25 percent may
be used to fund activities unrelated to ensuring that the
awareness, assessment, and renovation phases of year 2000
conversion for such information technology and national se-
curity systems are completed.
(2) Of the amounts authorized to be appropriated pur-
suant to this Act for information technology and national
security systems of the Department of Defense (other than
information technology and national security systems cov-
ered by paragraph (1)), not less than $1,000,000,000 shall
be available only for transfer to support activities to ensure
that the awareness, assessment, renovation, and validation
phases of year 2000 conversion for information technology
and national security systems covered by paragraph (1) are
completed.
(b) EXCEPTIONS.—(1) This section does not apply to
or affect funding for information technology and national
security programs identified in section 313(b).
(2) The Secretary of Defense may authorize expendi-
tures in excess of the 25 percent limitation specified in sub-
section (a)(1) if the Secretary determines that additional
expenditures are required to prevent the failure of the infor-
mation technology or national security system and provides
prior notice to Congress of the reasons for the additional
expenditures.
(c) TERMINATION.—(1) On the date on which the Sec-
retary of Defense determines that the year 2000 renovation
phase has been completed for a particular information tech-
nology or national security system covered by paragraph
(1) of subsection (a), such paragraph shall cease to apply
to that information technology or national security system.
(2) Paragraph (2) of such subsection shall cease to
apply on the date on which the Secretary of Defense deter-
mines that all of the information technology and national
security systems covered by paragraph (1) of such sub-
section are fully funded through the validation phase of
year 2000 conversion, have an established contingency plan,
and have completed a point of origin to point of execution
evaluation.
(d) COMPTROLLER GENERAL REVIEW.—Not later than
January 30, 1999, the Comptroller General shall submit to
Congress a briefing containing the following:
(1) Separate lists of each information technology
and national security system of the Department of
Defense covered by subsection (a)(1) for which the
renovation phase of year 2000 conversion is not com-
pleted by December 30, 1998.
(2) A evaluation of the effect of subsection (a) on
the year 2000 conversion success rate.
(3) A list of each information technology and na-
tional security system covered by subsection (a)(1)
that will not achieve year 2000 compliance by Sep-
tember 30, 1999.
(4) An explanation of how the military depart-
ments, the Joint Chiefs of Staff, and Defense Agencies
are applying the definition of mission critical.
(5) Recommendations regarding the manner in
which funding could best be allocated to achieve year
2000 compliance for the greatest number of informa-
tion technology and national security systems covered
by subsection (a)(1).
(e) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
(2) The term ‘‘national security system’’ has the
meaning given that term in section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).
(3) The term ‘‘mission critical’’ means an infor-
mation technology or national security system of the
Department of Defense identified as mission critical
in the table prepared by the Joint Chiefs of Staff enti-
tled ‘‘Mission Critical Systems (All Services/Agen-
cies)’’, dated March 20, 1998, or in the table printed
by the Defense Integrated Support Tool entitled ‘‘Year
2000 Information on Mission Critical Systems’’,
dated March 19, 1998.
(4) The terms ‘‘awareness’’, ‘‘assessment’’, ‘‘ren-
ovation’’, and ‘‘validation’’ have the meanings given
the terms in the Department of Defense ‘‘Year 2000
Management Plan’’, version 1.0, released in April
1997.
SEC. 315. EVALUATION OF YEAR 2000 COMPLIANCE AS PART
OF TRAINING EXERCISES PROGRAMS.
(a) REPORT ON EVALUATION PLAN.—Not later than
December 15, 1998, the Secretary of Defense shall submit
to Congress a report containing a plan to include a simu-
lated year 2000 as part of the military exercises described
in subsection (b) in order to evaluate, in an operational
environment, the extent to which information technology
and national security systems involved in the exercises will
successfully operate, including the ability of the systems to
access and transmit information from point of origin to
point of termination, during the actual year 2000.
(b) COVERED MILITARY EXERCISES.—A military exer-
cise referred to in subsection (a) is a military exercise con-
ducted by the Department of Defense, during the period be-
ginning on January 1, 1999, and ending on September 30,
1999—
(1) under the training exercises program known
as the ‘‘CJCS Exercise Program’’;
(2) at the Naval Strike and Air Warfare Center,
the Army National Training Center, or the Air Force
Air Warfare Center; or
(3) as part of Naval Carrier Group fleet training
or Marine Corps Expeditionary Unit training.
(c) ELEMENTS OF REPORT.—The report under sub-
section (a) shall include the following:
(1) A list of all military exercises described in
subsection (b) to be conducted during the period speci-
fied in such subsection.
(2) A description of the manner in which the
year 2000 will be simulated for information tech-
nology and national security systems involved in each
military exercise.
(3) The duration of the year 2000 simulation in
each military exercise.
(4) The methodology to be used in turning over
the information technology and national security sys-
tems to the year 2000 in order to best identify those
systems that fail to operate reliably during the mili-
tary exercise.
(5) A list of the information technology and na-
tional security systems excluded from the plan under
subsection (d)(1), including how the military exercise
will utilize an excluded system’s year 2000 contin-
gency plan.
(6) A list of the exercises and information tech-
nology and national security systems excluded from
the plan under subsection (d)(2), and a description of
the effect that continued year 2000 noncompliance of
the systems would have on military readiness.
(d) EXCLUSIONS.—(1) Subsection (a) shall not apply
to an information technology or national security system
if the Secretary of Defense determines that the system will
be incapable of performing reliably during the year 2000
simulation portion of the military exercise. In the case of
each excluded system, the system may not be used during
the period of the year 2000 simulation. Instead, the ex-
cluded system shall be replaced by the year 2000 contin-
gency plan for the system.
(2) If the mission of a military exercise will be seri-
ously hampered by the number of information technology
and national security systems covered by paragraph (1),
the Secretary of Defense may exclude the entire exercise
from the requirements of subsection (a).
(3) Subsection (a) shall not apply to an information
technology or national security system with cryptological
applications.
(4) If the decision to exclude a military exercise or in-
formation technology or national security system is made
under paragraph (1) or (2) after the date of the submission
of the report required by subsection (a), the Secretary of
Defense shall notify Congress of the exclusion not later than
two weeks before commencing the military exercise. The no-
tification shall include the information required under
paragraph (5) or (6) of subsection (c), depending on wheth-
er the exclusion covers the entire exercise or particular in-
formation technology and national security systems.
(e) COMPTROLLER GENERAL REVIEW.—Not later than
January 30, 1999, the Comptroller General shall review the
report and plan submitted under subsection (a) and submit
to Congress a briefing evaluating the methodology to be used
under the plan to simulate the year 2000, describing the
potential information that will be collected as a result of
implementation of the plan, and describing the impact that
the plan will have on military readiness.
(f) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
(2) The term ‘‘national security system’’ has the
meaning given that term in section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).
Subtitle C—Environmental
Provisions
SEC. 321. AUTHORIZATION TO PAY NEGOTIATED SETTLE-
MENT FOR ENVIRONMENTAL CLEANUP AT
FORMER DEPARTMENT OF DEFENSE SITES IN
CANADA.
(a) AUTHORIZATION.—To the extent provided in ap-
propriations Acts, the Secretary of Defense may pay an
amount to the Government of Canada of not more than
$100,000,000 (in fiscal year 1996 constant dollars), for pur-
poses of implementing the October 1996 negotiated settle-
ment between the United States and Canada relating to en-
vironmental cleanup at various sites in Canada that were
formerly used by the Department of Defense.
(b) METHOD OF PAYMENT.—The amount authorized
by subsection (a) shall be paid in 10 annual payments, with
the first payment made from amounts appropriated for fis-
cal year 1998.
(c) FISCAL YEAR 1998 PAYMENT.—The payment
under this section for fiscal year 1998 shall be made from
amounts appropriated pursuant to section 301(5) of the Na-
tional Defense Authorization Act for Fiscal Year 1998 (Pub-
lic Law 105–85; 111 Stat. 1669).
(d) FISCAL YEAR 1999 PAYMENT.—The payment
under this section for fiscal year 1999 shall be made from
amounts appropriated pursuant to section 301(5).
(e) LIMITATION.—The authorization provided in this
section shall not be construed as setting a precedent for pay-
ment under a treaty of an environmental claim made by
another nation, unless the Senate has given its consent to
the ratification of the treaty.
SEC. 322. REMOVAL OF UNDERGROUND STORAGE TANKS.
Of the amount authorized to be appropriated pursuant
to section 301(18) (relating to environmental restoration of
formerly used defense sites), the Secretary of the Army may
use not more than $150,000 for the removal of underground
storage tanks at the Authorities Allied Industrial Park,
Macon, Georgia.
Subtitle D—Defense Infrastructure
Support Improvement
SEC. 331. REPORTING AND STUDY REQUIREMENTS BEFORE
CHANGE OF COMMERCIAL AND INDUSTRIAL
TYPE 
FUNCTIONS 
TO 
CONTRACTOR 
PER-
FORMANCE.
(a) IN GENERAL.—Section 2461 of title 10, United
States Code, is amended—
(1) by redesignating subsection (c) as subsection
(h) and transferring such subsection to appear after
subsection (g); and
(2) by striking out subsections (a) and (b) and
inserting in lieu thereof the following new subsections:
‘‘(a) REPORTING AND STUDY REQUIREMENTS AS PRE-
CONDITION TO CHANGE IN PERFORMANCE.—A commercial
or industrial type function of the Department of Defense
that, as of October 1, 1980, was being performed by Depart-
ment of Defense civilian employees may not be changed to
performance by a private contractor or changed to procure-
ment through a private contractor until the Secretary of
Defense fully complies with the reporting and study require-
ments specified in subsections (b) and (c).
‘‘(b) NOTIFICATION AND ELEMENTS OF STUDY.—(1)
Before commencing to study a commercial or industrial
type function described in subsection (a) for possible change
to performance by a private contractor or possible change
to procurement through a private contractor, the Secretary
of Defense shall submit to Congress a report containing the
following:
‘‘(A) The function to be studied for possible
change.
‘‘(B) The location at which the function is per-
formed by Department of Defense civilian employees.
‘‘(C) The number of civilian employee positions
potentially affected.
‘‘(D) The anticipated length and cost of the
study.
‘‘(E) A certification that the performance of the
commercial or industrial type function by civilian
employees of the Department of Defense is not pre-
cluded due to any constraint or limitation in terms
of man years, end strengths, full-time equivalent posi-
tions, or maximum number of employees.
‘‘(2) The responsibility of the Secretary of Defense to
submit the report required under paragraph (1) may be del-
egated only to senior acquisition executives or higher offi-
cials for the military departments and the Defense Agencies.
‘‘(3) The study of a commercial or industrial type
function for possible change in performance shall include
the following:
‘‘(A) A comparison of the cost of performance of
the function by Department of Defense civilian em-
ployees and by private contractor to demonstrate
whether change to performance by a private contrac-
tor or change to procurement through a private con-
tractor will result in savings to the Government over
the life of the contract, including in the comparison—
‘‘(i) the amount estimated by the Secretary
of Defense (based on bids received) to be the
amount of a contract for performance of the
function by a private contractor;
‘‘(ii) the cost to the Government of Depart-
ment of Defense civilian employees performing
the function; and
‘‘(iii) the costs and expenditures which the
Government would incur (in addition to the
amount of the contract) because of the award of
such a contract.
‘‘(B) An examination of the potential economic
effect of performance of the function by a private con-
tractor—
‘‘(i) on employees who would be affected by
such a change in performance; and
‘‘(ii) on the local community and the Gov-
ernment, if more than 75 employees perform the
function.
‘‘(C) An examination of the effect of performance
of the function by a private contractor on the mili-
tary mission of the function.
‘‘(4) If the commercial or industrial type function at
issue involves a working-capital fund in the Department
of Defense and the study concerns the possible procurement
by a requisitioning agency of services or supplies from a
private contractor instead of the working-capital fund, in
lieu of the comparison required by paragraph (3), the study
shall include a comparison of the sources of the services or
supplies to determine which source is more cost-effective for
the requisitioning agency.
‘‘(5) An individual or entity at a facility where a com-
mercial or industrial type function is studied for possible
change in performance may raise an objection to the study
on the grounds that the report required under paragraph
(1) as a precondition for the study does not contain the
certification required by subparagraph (E) of such para-
graph. The objection may be raised at any time during the
course of the study, shall be in writing, and shall be submit-
ted to the Secretary of Defense. If the Secretary determines
that the certification was omitted, the commercial or indus-
trial type function covered by the study may not be the sub-
ject of request for proposal or award of a contract until
a certification is made that fully complies with paragraph
(1)(E) and the other requirements of this section are satis-
fied.
‘‘(c) NOTIFICATION OF DECISION.—(1) If, as a result
of the completion of a study under subsection (b)(3), a deci-
sion is made to change the commercial or industrial type
function that was the subject of the study to performance
by a private contractor or to procurement through a private
contractor, the Secretary of Defense shall submit to Congress
a report describing that decision. The report shall—
‘‘(A) indicate that the study under subsection
(b)(3) has been completed;
‘‘(B) certify that the Government calculation for
the cost of performance of the function by Department
of Defense civilian employees is based on an estimate
of the most efficient and cost effective organization for
performance of the function by Department of Defense
civilian employees;
‘‘(C) certify that the comparison required by sub-
section (b)(3)(A) (or alternatively by subsection
(b)(4)) as part of the study demonstrates that the per-
formance of the function by a private contractor or
procurement of the function through a private con-
tractor will result in savings to the Government over
the life of the contract;
‘‘(D) certify that the entire comparison is avail-
able for examination; and
‘‘(E) contain a timetable for completing change
of the function to contractor performance.
‘‘(2) The actual change of the function to contractor
performance may not begin until after the submission of
the report required by this subsection.’’.
(b) CONFORMING
AMENDMENTS.—(1) Subsections
(e)(2) and (f)(1) of such section are amended by striking
out ‘‘converted’’ and inserting in lieu thereof ‘‘changed’’.
(2) Subsection (f)(2) of such section is amended by
striking out ‘‘conversion’’ and inserting in lieu thereof
‘‘change’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act but shall not apply with respect to conversion of a func-
tion of the Department of Defense to performance by a pri-
vate contractor concerning which the Secretary of Defense
provided to Congress, before the date of the enactment of
this Act, a notification under paragraph (1) of section
2461(a) of title 10, United States Code, as in effect on the
day before the date of the enactment of this Act.
SEC. 332. CLARIFICATION OF REQUIREMENT TO MAINTAIN
GOVERNMENT-OWNED AND GOVERNMENT-OP-
ERATED CORE LOGISTICS CAPABILITY.
Section 2464 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection:
‘‘(c) RULE
OF
CONSTRUCTION.—The requirement
under subsection (a) that the Department of Defense main-
tain a core logistics capability that is Government-owned
and Government-operated is not satisfied when a core logis-
tics workload is converted to contractor performance even
though the actual performance of the workload will be car-
ried out in a Government-owned, Government-operated fa-
cility of the Department of Defense as a subcontractor of
the private contractor. Nothing in section 2474 of this title
or section 337 of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2717)
authorizes the use of subcontracts as a means to provide
workloads to Government-owned, Government-operated fa-
cilities of the Department of Defense in order to satisfy
paragraph (4) of subsection (a).’’.
SEC. 333. OVERSIGHT OF DEVELOPMENT AND IMPLEMENTA-
TION OF AUTOMATED IDENTIFICATION TECH-
NOLOGY.
(a) SMARTCARD PROGRAM DEFINED.—In this section,
the term ‘‘smartcard program’’ means an automated identi-
fication technology program, including any pilot program,
employing one or more of the following technologies:
(1) Magnetic stripe.
(2) Bar codes, both linear and two-dimensional
(including matrix symbologies).
(3) Smartcard.
(4) Optical memory.
(5) Personal computer memory card inter-
national association carriers.
(6) Other established or emerging automated
identification technologies, including biometrics and
radio frequency identification.
(b) OVERSIGHT RESPONSIBILITY.—(1) The Smartcard
Technology Office established in the Defense Human Re-
sources Field Activity of the Department of Defense shall
be responsible for—
(A) overseeing the development and implementa-
tion of all smartcard programs in the Department;
and
(B) coordinating smartcard programs with the
Joint Staff, the Secretaries of the military depart-
ments, and the directors of the Defense Agencies.
(2) After the date of the enactment of this Act, funds
appropriated for the Department of Defense may not be ob-
ligated for a smartcard program unless the program is re-
viewed and approved by the Smartcard Technology Office.
The review and approval before that date of a smartcard
program by the Office is sufficient to satisfy the require-
ments of this paragraph.
(c) TYPES OF OVERSIGHT.—As part of its oversight
responsibilities, the Smartcard Technology Office shall es-
tablish standards designed—
(1) to ensure the compatibility and interoper-
ability of smartcard programs in the Department of
Defense; and
(2) to identify and terminate redundant,
unfeasible, or uneconomical smartcard programs.
SEC. 334. CONDITIONS ON EXPANSION OF FUNCTIONS PER-
FORMED UNDER PRIME VENDOR CONTRACTS.
(a) PRIME VENDOR CONTRACT DEFINED.—For pur-
poses of this section, the term ‘‘prime vendor contract’’
means an innovative contract that gives a defense contrac-
tor the responsibility to manage, store, and distribute in-
ventory, manage and provide services, or manage and per-
form research, on behalf of the Department of Defense on
a frequent, regular basis, for users within the Department
on request. The term includes contracts commonly referred
to as prime vendor support contracts, flexible sustainment
contracts, and direct vendor delivery contracts.
(b) CONDITIONS ON EXPANDED USE.—If the Secretary
of Defense or the Secretary of a military department pro-
poses to enter into a prime vendor contract for a hardware
system, including the performance or management of depot-
level maintenance and repair (as defined in section 2460
of title 10, United States Code) or logistics management
responsibilities, the Secretary may not enter into the prime
vendor contract until the end of the 60-day period begin-
ning on the date on which the Secretary submits to Congress
a report, specific to that proposal, that—
(1) describes the competitive procedures to be
used to award the prime vendor contract;
(2) evaluates the effect of the prime vendor con-
tract on working-capital funds in the Department of
Defense; and
(3) contains a cost/benefit analysis that dem-
onstrates that use of the prime vendor contract will
result in savings to the Government over the life of the
contract.
(c) COMPTROLLER GENERAL REVIEW.—During the
waiting period provided in subsection (b) for a proposed
prime vendor contract, the Comptroller General shall review
the report submitted under subsection (b) with respect to
that contract and submit to Congress a report regarding—
(1) whether the cost savings to the Government
identified in the report submitted under subsection (b)
are achievable; and
(2) whether use of a prime vendor contract will
comply with the requirements of chapter 146 of title
10, United States Code, applicable to depot-level
maintenance and repair.
(d) RELATIONSHIP TO OTHER LAWS.—Nothing in this
section shall be construed to exempt a prime vendor contract
from the requirements of section 2461 of title 10, United
States Code, or any other provision of chapter 146 of such
title.
SEC. 335. CLARIFICATION OF DEFINITION OF DEPOT-LEVEL
MAINTENANCE AND REPAIR.
Section 2460(a) of title 10, United States Code, is
amended by inserting before the period at the end of the
first sentence the following: ‘‘or the location at which the
maintenance or repair is performed’’.
SEC. 336. CLARIFICATION OF COMMERCIAL ITEM EXCEP-
TION TO REQUIREMENTS REGARDING CORE
LOGISTICS CAPABILITIES.
Section 2464(a)(5) of title 10, United States Code, is
amended—
(1) by inserting ‘‘(A)’’ after ‘‘(5)’’;
(2) by adding at the end of subparagraph (A),
as so designated, the following: ‘‘The determination of
whether a modification is minor shall be based on a
comparison of only the critical systems of the version
sold in the commercial marketplace and the version
purchased by the Government, and a modification
may not be considered to be minor unless at least 90
percent of the total content by component value re-
mains identical.’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) In this paragraph, the term ‘substantial quan-
tities’ means, with respect to determining whether an item
is a commercial item, that purchases and leases of the item
to the general public constitute the majority of all trans-
actions involving the item at the time the exception under
paragraph (3) is proposed to be exercised.’’.
SEC. 337. DEVELOPMENT OF PLAN FOR ESTABLISHMENT OF
CORE LOGISTICS CAPABILITIES FOR MAINTE-
NANCE AND REPAIR OF C–17 AIRCRAFT.
(a) FINDINGS.—Congress finds the following:
(1) The C–17 aircraft, which is replacing the C–
141 aircraft, will serve as the cornerstone of heavy
airlift capability of the Armed Forces.
(2) The C–17 aircraft achieved initial oper-
ational capability in January 1995 and will complete
the significant fourth year of its operational capabil-
ity in January 1999.
(3) As provided in section 2464(a)(3) of title 10,
United States Code, the C–17 aircraft is a weapon
system that is ‘‘necessary to enable the armed forces
to fulfill the strategic and contingency plans prepared
by the Chairman of the Joint Chiefs of Staff’’.
(4) The depot-level maintenance and repair of
such a weapon system must be performed at Govern-
ment-owned, Government-operated facilities of the De-
partment of Defense in order to maintain the core lo-
gistics capabilities of the Department of Defense, as
required under such section 2464.
(5) The sole-source contract entered into in Jan-
uary 1998 regarding the depot-level maintenance and
repair of C–17 aircraft and related tasks, known as
the 
Interim 
Contract 
for 
the 
C–17 
Flexible
Sustainment Program, does not meet the requirements
of law.
(b) PLAN REQUIRED.—Not later than March 1, 1999,
the Secretary of the Air Force shall submit to Congress a
plan for the establishment of the core logistics capabilities
for the C–17 aircraft consistent with the requirements of
section 2464 of title 10, United States Code.
(c) EFFECT ON EXISTING CONTRACT.—After March 1,
1999, the Secretary of the Air Force may not extend the
Interim Contract for the C–17 Flexible Sustainment Pro-
gram until after the end of the 60-day period beginning
on the date the plan required by subsection (b) is received
by Congress.
(d) COMPTROLLER GENERAL REVIEW.—During the
period specified in subsection (c), the Comptroller General
shall review the plan required under subsection (b) and sub-
mit to Congress a report evaluating the merits of the plan.
SEC. 338. CONTRACTOR-OPERATED CIVIL ENGINEERING
SUPPLY STORES PROGRAM.
(a) DEFINITIONS.—In this section:
(1) The term ‘‘contractor-operated civil engineer-
ing supply store’’ means a Government-owned facility
that, as of the date of the enactment of this Act, is
operated by a contractor under the contractor-oper-
ated civil engineering supply store (COCESS) pro-
gram of the Department of the Air Force for the pur-
pose of—
(A) maintaining inventories of civil engi-
neering supplies on behalf of a military depart-
ment; and
(B) furnishing such supplies to the depart-
ment as needed.
(2) The term ‘‘civil engineering supplies’’ means
parts and supplies needed for the repair and mainte-
nance of military installations.
(b) FINDINGS.—Congress finds the following:
(1) In 1970, the Strategic Air Command of the
Air Force began to use contractor-operated civil engi-
neering supply stores to improve the efficiency and ef-
fectiveness of materials management and relieve the
Air Force from having to maintain large inventories
of civil engineering supplies.
(2) Contractor-operated civil engineering supply
stores are designed to support the civil engineering
and public works efforts of the Armed Forces through
the provision of quality civil engineering supplies at
competitive prices and within a reasonable period of
time.
(3) Through the use of a contractor-operated civil
engineering supply store, a guaranteed inventory level
of civil engineering supplies is maintained at a mili-
tary installation, which ensures that urgently needed
civil engineering supplies are available on site.
(4) The contractor operating the contractor-oper-
ated civil engineering supply store is an independent
business organization whose customer is a military
department and the Armed Forces and who is subject
to all the rules of private business and the regulations
of the Government.
(5) The use of contractor-operated civil engineer-
ing supply stores ensures the best price and best buy
for the Government.
(6) Ninety-five percent of the cost savings real-
ized through the use of contractor-operated civil engi-
neering supply stores is due to savings in the cost of
actually procuring supplies.
(7) In the past 30 years, private contractors have
never lost a cost comparison conducted pursuant to
the criteria set forth in Office of Management and
Budget Circular A–76 for the provision of civil engi-
neering supplies to the Government.
(c) CONDITIONS ON MULTI-FUNCTION CONTRACTS.—
A civil engineering supplies function that is performed, as
of the date of the enactment of this Act, by a contractor-
operated civil engineering supply store may not be com-
SEC. 339. REPORT ON SAVINGS AND EFFECT OF PERSON-
NEL REDUCTIONS IN ARMY MATERIEL COM-
MAND.
(a) REPORT REQUIRED.—Not later than March 31,
1999, the Comptroller General shall submit to the congres-
sional defense committees a report concerning—
(1) the effect that the proposed personnel reduc-
tions in the Army Materiel Command will have on
workload and readiness if implemented; and
(2) the likelihood that the cost savings projected
to occur from such reductions will actually be
achieved.
(b) DELAY
IN IMPLEMENTATION
OF REDUCTIONS
PENDING REPORT.—During the period specified in sub-
section (c), the Secretary of Defense and the Secretary of
the Army may not commence personnel reductions based
on the guidelines contained in the May 1997 report of the
Quadrennial Defense Review (including the National De-
fense Panel) prepared pursuant to subtitle B of title IX of
the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104-201; 10 U.S.C. 111 note) at any
Army Material Command facility that provides depot-level
maintenance and repair or at any Army Arsenal.
(c) DURATION OF DELAY.—Subsection (b) applies only
during the period beginning on the date of the enactment
of this Act and ending on the earlier of the following:
(1) March 31, 1999.
(2) The date on which the report required by
subsection (a) is submitted.
Subtitle E—Commissaries and Non-
appropriated Fund Instrumen-
talities
SEC. 341. CONTINUATION OF MANAGEMENT AND FUNDING
OF 
DEFENSE 
COMMISSARY 
AGENCY
THROUGH THE OFFICE OF THE SECRETARY
OF DEFENSE.
Section 192 of title 10, United States Code, is amended
by adding at the end the following new subsection:
‘‘(d) SPECIAL RULE
FOR DEFENSE COMMISSARY
AGENCY.—Notwithstanding the results of the periodic re-
view required under subsection (c) with regard to the De-
fense Commissary Agency, the Secretary of Defense may not
transfer to the Secretary of a military department the re-
sponsibility to manage and fund the provision of services
and supplies provided by the Defense Commissary Agency
unless the transfer of the management and funding respon-
sibility is specifically authorized by a law enacted after the
date of the enactment of the National Defense Authorization
Act for Fiscal Year 1999.’’.
SEC. 342. EXPANSION OF CURRENT ELIGIBILITY OF RE-
SERVES FOR COMMISSARY BENEFITS.
(a) DAYS OF ELIGIBILITY FOR READY RESERVE MEM-
BERS WITH 50 CREDITABLE POINTS.—Section 1063 of title
10, United States Code, is amended—
(1) by striking out subsection (b); and
(2) in subsection (a)—
(A) by striking out ‘‘(1)’’;
(B) by striking out ‘‘12 days of eligibility’’
and inserting in lieu thereof ‘‘24 days of eligi-
bility’’; and
(C) by striking out ‘‘(2) Paragraph (1)’’
and inserting in lieu thereof ‘‘(b) EFFECT OF
COMPENSATION OR TYPE OF DUTY.—Subsection
(a)’’.
(b) DAYS OF ELIGIBILITY FOR RESERVE RETIREES
UNDER AGE 60.—Section 1064 of such title is amended by
striking out ‘‘for 12 days each calendar year’’ and inserting
in lieu thereof ‘‘for 24 days each calendar year’’.
(c) ELIGIBILITY OF MEMBERS OF NATIONAL GUARD
SERVING IN FEDERALLY DECLARED DISASTER.—Chapter
54 of such title is amended by inserting after section 1063
the following new section:
‘‘§ 1063a. Use of commissary stores and MWR retail fa-
cilities: members of National Guard serv-
ing in federally declared disaster
‘‘(a) ELIGIBILITY OF MEMBERS.—A member of the Na-
tional Guard who, although not in Federal service, is called
or ordered to duty in response to a federally declared disas-
ter shall be permitted to use commissary stores and MWR
retail facilities during the period of such duty on the same
basis as members of the armed forces on active duty.
‘‘(b) ELIGIBILITY OF DEPENDENTS.—A dependent of
a member of the National Guard who is permitted under
subsection (a) to use commissary stores and MWR retail
facilities shall be permitted to use such stores and facilities,
during the same period as the member, on the same basis
as dependents of members of the armed forces on active
duty.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) FEDERALLY
DECLARED
DISASTER.—The
term ‘federally declared disaster’ means a disaster or
other situation for which a Presidential declaration of
major disaster is issued under section 401 of the Rob-
ert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5170).
‘‘(2) MWR 
RETAIL
FACILITIES.—The term
‘MWR retail facilities’ means exchange stores and
other revenue-generating facilities operated by non-
appropriated fund activities of the Department of De-
fense for the morale, welfare, and recreation of mem-
bers of the armed forces.’’.
(d) SECTION HEADINGS.—(1) The heading of section
1063 of such title is amended to read as follows:
‘‘§ 1063. Use of commissary stores: members of Ready
Reserve 
with 
at 
least 
creditable
points’’.
(2) The heading of section 1064 of such title is amend-
ed to read as follows:
‘‘§ 1064. Use of commissary stores: persons qualified
for retired pay under chapter 1223 but
under age 60’’.
(e) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 54 of such title is amended by
striking out the items relating to sections 1063 and 1064
and inserting in lieu thereof the following items:
‘‘1063. Use of commissary stores: members of Ready Reserve with at least 50 cred-
itable points.
‘‘1063a. Use of commissary stores and MWR retail facilities: members of National
Guard serving in federally declared disaster.
‘‘1064. Use of commissary stores: persons qualified for retired pay under chapter
1223 but under age 60.’’.
SEC. 343. REPEAL OF REQUIREMENT FOR AIR FORCE TO
SELL TOBACCO PRODUCTS TO ENLISTED PER-
SONNEL.
(a) REPEAL.—Section 9623 of title 10, United States
Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 939 of such title is amended by
striking out the item relating to section 9623.
SEC. 344. RESTRICTIONS ON PATRON ACCESS TO, AND PUR-
CHASES IN, OVERSEAS COMMISSARIES AND
EXCHANGE STORES.
(a) AUTHORITY TO IMPOSE RESTRICTIONS; LIMITA-
TIONS ON AUTHORITY.—Chapter 147 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 2491. Overseas commissary and exchange stores: ac-
cess and purchase restrictions
‘‘(a) GENERAL AUTHORITY.—The Secretary of Defense
may establish restrictions on the ability of eligible patrons
of commissary and exchange stores located outside of the
United States to purchase certain merchandise items (or
the quantity of certain merchandise items) otherwise in-
cluded within an authorized merchandise category if the
Secretary determines that such restrictions are necessary to
prevent the resale of such merchandise in violation of host
nation laws or treaty obligations of the United States. In
establishing a quantity or other restriction, the Secretary
shall ensure that the restriction is consistent with the pur-
pose of the overseas commissary and exchange system to
provide reasonable access for eligible patrons to purchase
merchandise items made in the United States.
‘‘(b) CONTROLLED ITEM LISTS.—For each location
outside the United States that is served by the commissary
system or the exchange system, the Secretary of Defense may
maintain a list of controlled merchandise items, except that,
after the date of the enactment of the National Defense Au-
thorization Act for Fiscal Year 1999, the Secretary may not
change the list to add a merchandise item unless, before
making the change, the Secretary submits to Congress a no-
tice of the proposed addition and the reasons for the addi-
tion of the item.
‘‘(c) SPECIAL RULES FOR KOREA.—(1) The Secretary
of Defense may not prohibit a dependent who resides in
Korea, is at least 21 years of age, and is otherwise eligible
to use the commissary and exchange system, from purchas-
ing alcoholic beverages through the commissary and ex-
change system. Quantity restrictions on the purchase of al-
coholic beverages may be imposed, and any such restriction
may be enforced through the use of an issued ration control
device, but a dependent may not be required to sign for
any purchase. A quantity restriction on malt beverages may
not restrict purchases to fewer than eight cases, of 24-units
per case, per month. Daily or weekly restrictions on malt
beverage purchases may not be imposed. The purchase of
malt beverages may be recorded on a ration control device,
but eligible patrons may not be required to sign for any
purchase.
‘‘(2) A dependent residing in Korea who is at least
18 years of age and otherwise eligible to use the commissary
and exchange system may purchase tobacco products on the
same basis as other eligible patrons of the commissary and
exchange system.
‘‘(3) Eligible patrons of the commissary and exchange
system who are traveling through a military air terminal
in Korea shall be authorized to the purchase sundry items,
including tobacco products, on a temporary basis during
the normal operating hours of commissary and exchange
stores operated in connection with the terminal.
‘‘(4) In applying restrictions to dependents of members
of the armed forces, the Secretary of Defense may not dif-
ferentiate between a dependent whose movement to Korea
was authorized at the expense of the United States under
section 406 of title 37 and other dependents residing in
Korea.
‘‘(d) REPORTING REQUIREMENTS.—The Secretary of
Defense shall submit to Congress an annual report describ-
ing the host nation laws and the treaty obligations of the
United States, and the conditions within host nations, that
necessitate the use of quantity or other restrictions on pur-
chases in commissary and exchange stores located outside
the United States.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘2491. Overseas commissary and exchange stores: access and purchase restric-
tions.’’.
SEC. 345. EXTENSION OF DEMONSTRATION PROJECT FOR
UNIFORM FUNDING OF MORALE, WELFARE,
AND RECREATION ACTIVITIES.
Section 335 of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104–106; 10 U.S.C. 2241
note) is amended—
(1) in subsection (c), by striking out ‘‘not later
than September 30, 1998’’ and inserting in lieu there-
of ‘‘on September 30, 1999’’; and
(2) in subsection (e)(2), by striking out ‘‘a final
report on the results’’ and inserting in lieu thereof
‘‘an additional report on the progress’’.
SEC. 346. PROHIBITION ON CONSOLIDATION OR OTHER OR-
GANIZATIONAL CHANGES OF DEPARTMENT
OF DEFENSE RETAIL SYSTEMS.
(a) DEFENSE RETAIL SYSTEMS DEFINED.—For pur-
poses of this section, the term ‘‘defense retail systems’’
means the defense commissary system and exchange stores
and other revenue-generating facilities operated by non-
appropriated fund activities of the Department of Defense
for the morale, welfare, and recreation of members of the
Armed Forces.
(b) PROHIBITION.—The operation and administration
of the defense retail systems may not be consolidated or oth-
erwise changed, and a study or review may not be com-
menced regarding the need for or merits of such a consolida-
tion or change, unless the consolidation, change, study, or
review is specifically authorized by a law enacted after the
date of the enactment of this Act.
(c) EFFECT ON EXISTING STUDY.—Nothing in this
section shall be construed to prohibit the study of defense
retail systems, known as the ‘‘Joint Exchange Due Dili-
gence Study’’, which is underway on the date of the enact-
ment of this Act pursuant to a contract awarded by the
Department of the Navy on April 21, 1998, except that any
recommendation contained in the completed study regard-
ing the operation or administration of the defense retail sys-
tems may not be implemented unless implementation of the
recommendation is specifically authorized by a law enacted
after the date of the enactment of this Act.
SEC. 347. AUTHORIZED USE OF APPROPRIATED FUNDS FOR
RELOCATION OF NAVY EXCHANGE SERVICE
COMMAND.
The Navy Exchange Service Command is not required
to reimburse the United States for appropriated funds allot-
ted to the Navy Exchange Service Command during fiscal
years 1994, 1995, and 1996 to cover costs incurred by the
Navy Exchange Service Command to relocate to Virginia
Beach, Virginia, and to lease headquarters space in Vir-
ginia Beach.
SEC. 348. EVALUATION OF MERIT OF SELLING MALT BEV-
ERAGES AND WINE IN COMMISSARY STORES
AS EXCHANGE SYSTEM MERCHANDISE.
(a) PATRON SURVEY.—(1) The Secretary of Defense
shall enter into a contract with a commercial survey firm
to conduct a survey of eligible patrons of the commissary
store system to determine patron interest in having com-
missary stores sell malt beverages and wine as exchange
store merchandise.
(2) The survey shall be conducted at not less than three
military installations in the United States of each of the
Armed Forces (other than the Coast Guard).
(3) The survey shall be completed, and the results sub-
mitted to the Secretary of Defense, not later than November
30, 1998.
(b) DEMONSTRATION PROJECT.—(1) After consider-
ation of the survey results, the Secretary of Defense may
conduct a demonstration project at seven military installa-
tions in the United States (two Army installations, two Air
Force installations, two Navy installations, and one Marine
Corps installation) to evaluate the merit of selling malt bev-
erages and wine in commissary stores as exchange store
merchandise. Under the demonstration project, the Sec-
retary may sell malt beverages and wine in commissary
stores as exchange store merchandise notwithstanding the
general requirement that merchandise sold in, at, or by
commissary stores be commissary store inventory.
(2) The demonstration project may only be conducted
in States where it is legal to sell malt beverages and wine
in grocery stores.
(3) Not later than February 1, 1999, the Secretary of
Defense shall determine whether to conduct the demonstra-
tion project. Any such demonstration project shall be com-
pleted not later than September 30, 2000.
(c) REPORT.—(1) If the Secretary of Defense conducts
a demonstration project under subsection (b), the Secretary
shall submit to Congress a report describing the results of
the demonstration project. The report shall include a de-
scription of patron views, the impact on commissary sales,
the impact on exchange sales, and the impact, if any, on
dividends for morale, welfare, and recreation activities.
(2) The report shall be submitted not later than March
1, 2000.
(d) LIMITATION.—Nothing in this section shall be con-
strued to authorize the sale of malt beverages and wine in
commissary stores as commissary store inventory.
Subtitle F—Other Matters
SEC. 361. ELIGIBILITY REQUIREMENTS FOR ATTENDANCE
AT DEPARTMENT OF DEFENSE DOMESTIC DE-
PENDENT 
ELEMENTARY 
AND 
SECONDARY
SCHOOLS.
(a) DEPENDENTS OF MEMBERS RESIDING IN CERTAIN
AREAS.—Subsection (a) of section 2164 of title 10, United
States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘If’’;
(2) by designating the second sentence as para-
graph (2); and
(3) by adding at the end of paragraph (2) (as
so designated) the following new sentence: ‘‘If a mem-
ber of the armed forces is assigned to a remote loca-
tion or is assigned to an unaccompanied tour of duty,
a dependent of the member who resides, on or off a
military installation, in a territory, commonwealth,
or possession of the United States, as authorized by
the member’s orders, may be enrolled in an edu-
cational program provided by the Secretary under
this subsection.’’.
(b) WAIVER
OF FIVE-YEAR ATTENDANCE LIMITA-
TION.—Subsection (c)(2) of such section is amended by
striking out subparagraph (B) and inserting in lieu thereof
the following new subparagraph:
‘‘(B) At the discretion of the Secretary, a dependent
referred to in subparagraph (A) may be enrolled in the pro-
gram for more than five consecutive school years if the de-
pendent is otherwise qualified for enrollment, space is avail-
able in the program, and the Secretary will be reimbursed
for the services provided. Any such extension shall cover
only one school year at a time.’’.
SEC. 362. SPECIFIC EMPHASIS OF PROGRAM TO INVES-
TIGATE FRAUD, WASTE, AND ABUSE WITHIN
DEPARTMENT OF DEFENSE.
Section 392 of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C. 113
note) is amended by inserting before the period the follow-
ing: ‘‘and any fraud, waste, and abuse occurring in connec-
tion with overpayments made to vendors by the Department
of Defense, including overpayments identified under section
354 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104–106; 10 U.S.C. 2461 note)’’.
SEC. 363. REVISION OF INSPECTION REQUIREMENTS RE-
LATING TO ARMED FORCES RETIREMENT
HOME.
Section 1518 of the Armed Forces Retirement Home
Act of 1991 (24 U.S.C. 418) is amended to read as follows:
‘‘SEC. 1518. INSPECTION OF RETIREMENT HOME.
‘‘(a) PERIODIC INSPECTION.—The Inspector Generals
of the military departments shall conduct, at three-year in-
tervals, an inspection of the Retirement Home and the
records of the Retirement Home. Each inspection under this
subsection shall be performed by a single Inspector General
on an alternating basis.
‘‘(b) REPORT.—The Inspector General of a military
department who performs an inspection of the Retirement
Home under subsection (a) shall submit to the Retirement
Home Board, the Secretary of Defense, and Congress a re-
port describing the results of the inspection and containing
such recommendations as the Inspector General considers
appropriate.’’.
SEC. 364. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES
THAT BENEFIT DEPENDENTS OF MEMBERS
OF THE ARMED FORCES AND DEPARTMENT
OF DEFENSE CIVILIAN EMPLOYEES.
(a) CONTINUATION
OF DEPARTMENT
OF DEFENSE
PROGRAM FOR FISCAL YEAR 1999.—Of the amount author-
ized to be appropriated pursuant to section 301(5) for oper-
ation and maintenance for Defense-wide activities—
(1) $30,000,000 shall be available only for the
purpose of providing educational agencies assistance
(as defined in subsection (d)(1)) to local educational
agencies; and
(2) $5,000,000 shall be available only for the
purpose of making educational agencies payments (as
defined in subsection (d)(2)) to local educational
agencies.
(b) NOTIFICATION.—Not later than June 30, 1999, the
Secretary of Defense shall—
(1) notify each local educational agency that is
eligible for educational agencies assistance for fiscal
year 1999 of that agency’s eligibility for such assist-
ance and the amount of such assistance for which that
agency is eligible; and
(2) notify each local educational agency that is
eligible for an educational agencies payment for fiscal
year 1999 of that agency’s eligibility for such pay-
ment and the amount of the payment for which that
agency is eligible.
(c) DISBURSEMENT OF FUNDS.—The Secretary of De-
fense shall disburse funds made available under paragraphs
(1) and (2) of subsection (a) not later than 30 days after
the date on which notification to the eligible local edu-
cational agencies is provided pursuant to subsection (b).
(d) DEFINITIONS.—In this section:
(1) The term ‘‘educational agencies assistance’’
means assistance authorized under section 386(b) of
the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 20 U.S.C. 7703
note).
(2) The term ‘‘educational agencies payments’’
means payments authorized under section 386(d) of
the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 20 U.S.C. 7703
note).
(3) The term ‘‘local educational agency’’ has the
meaning given that term in section 8013(9) of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 7713(9)).
SEC. 365. STRATEGIC PLAN FOR EXPANSION OF DISTANCE
LEARNING INITIATIVES.
(a) DEVELOPMENT OF PLAN.—The Secretary of De-
fense shall develop a strategic plan for guiding and expand-
ing distance learning initiatives in the Department of De-
fense. The strategic plan shall cover the five-year period be-
ginning on October 1, 1999.
(b) ELEMENTS OF PLAN.—The strategic plan required
by this section shall contain at a minimum the following
elements:
(1) Measurable goals and objectives, including
outcome-related performance indicators, for develop-
ing distance learning initiatives in the Department
that would be consistent with the principles of the
Government Performance and Results Act of 1993
(section 306 of title 5 and sections 1115 through 1119,
9703, and 9704 of title 31).
(2) A description of the manner in which dis-
tance learning initiatives will be developed and man-
aged in the Department.
(3) An estimate of the costs and benefits associ-
ated with developing and maintaining an infrastruc-
ture in the Department to support distance learning
initiatives and a statement of planned expenditures
for investments necessary to build and maintain the
infrastructure.
(4) A description of mechanisms that will be
used to oversee the development and coordination of
distance learning initiatives in the Department.
(c) CONSIDERATION OF CURRENT EFFORT.—In devel-
oping the strategic plan required by this section, the Sec-
retary of Defense may recognize the collaborative distance
learning effort of the Department of Defense and other Fed-
eral agencies and private industry (known as the Advanced
Distribution Learning initiative), but the strategic plan
shall be specific to the goals and objectives of the Depart-
ment.
(d) SUBMISSION OF PLAN.—Not later than March 1,
1999, the Secretary of Defense shall submit to Congress the
completed strategic plan required by this section.
SEC. 366. PUBLIC AVAILABILITY OF OPERATING AGREE-
MENTS BETWEEN MILITARY INSTALLATIONS
AND FINANCIAL INSTITUTIONS.
With respect to an agreement between the commander
of a military installation in the United States (or the des-
ignee of an installation commander) and a financial insti-
tution that permits, allows, or otherwise authorizes the pro-
vision of financial services by the financial institution on
the military installation, nothing in the terms or nature
of such an agreement shall be construed to exempt the agree-
ment from the provisions of sections 552 and 552a of title
5, United States Code.
SEC. 367. DEPARTMENT OF DEFENSE READINESS REPORT-
ING SYSTEM.
(a) ESTABLISHMENT OF SYSTEM.—(1) Chapter 2 of
title 10, United States Code, is amended by inserting after
section 116 the following new section:
‘‘§ 117. Readiness reporting system: establishment; re-
porting to congressional committees
‘‘(a) REQUIRED READINESS REPORTING SYSTEM.—
The Secretary of Defense shall establish a comprehensive
readiness reporting system for the Department of Defense.
The readiness reporting system shall measure in an objec-
tive, accurate, and timely manner the capability of the
armed forces to carry out—
‘‘(1) the National Security Strategy prescribed
by the President in the most recent annual national
security strategy report under section 108 of the Na-
tional Security Act of 1947 (50 U.S.C. 404a);
‘‘(2) the defense planning guidance provided by
the Secretary of Defense pursuant to section 113(g) of
this title; and
‘‘(3) the National Military Strategy prescribed
by the Chairman of the Joint Chiefs of Staff.
‘‘(b) READINESS REPORTING SYSTEM CHARACTERIS-
TICS.—In establishing the readiness reporting system, the
Secretary shall ensure—
‘‘(1) that the readiness reporting system is ap-
plied uniformly throughout the Department of De-
fense;
‘‘(2) that information in the readiness reporting
system is continually updated, with any change in
the overall readiness status of a unit, of an element
of the training establishment, or an element of defense
infrastructure that is required to be reported as part
of the readiness reporting system shall be reported
within 24 hours of the event necessitating the change
in readiness status; and
‘‘(3) that sufficient resources are provided to es-
tablish and maintain the system so as to allow re-
porting of changes in readiness status as required by
this section.
‘‘(c) CAPABILITIES.—The readiness reporting system
shall have the capability to do the following:
‘‘(1) Measure the capability of units (both as ele-
ments of their respective armed force and as elements
of joint forces) to conduct their assigned wartime mis-
sions.
‘‘(2) Measure the capability of training establish-
ments to provide trained and ready forces for war-
time missions.
‘‘(3) Measure the capability of defense installa-
tions and facilities and other elements of Department
of Defense infrastructure, both in the United States
and abroad, to provide appropriate support to forces
in the conduct of their wartime missions.
‘‘(4) Measure critical warfighting deficiencies in
unit capability, training establishments, and defense
infrastructure.
‘‘(5) Measure the level of current risk based upon
the readiness reporting system relative to the capabil-
ity of forces to carry out their wartime missions.
‘‘(6) Measure such other factors relating to readi-
ness as the Secretary prescribes.
‘‘(d) PERIODIC
JOINT
READINESS
REVIEW.—The
Chairman of the Joint Chiefs of Staff shall periodically,
and not less frequently than monthly, conduct a joint readi-
ness review. The Chairman shall incorporate into each such
review the current information derived from the readiness
reporting system and shall assess the capability of the
armed forces to execute their wartime missions based upon
their posture at the time of the review. The Chairman shall
submit to the Secretary of Defense the results of each review,
including the deficiencies in readiness identified during
that review.
‘‘(e) SUBMISSION TO CONGRESSIONAL COMMITTEES.—
The Secretary shall each month submit to the Committee
on Armed Services and the Committee on Appropriations
of the Senate and the Committee on National Security and
the Committee on Appropriations of the House of Rep-
resentatives a report in writing containing the complete re-
sults of each review under subsection (d) during the preced-
ing month, including the current information derived from
the readiness reporting system. Each such report shall be
submitted in unclassified form and may, as the Secretary
determines necessary, also be submitted in classified form.
‘‘(f) REGULATIONS.—The Secretary shall prescribe reg-
ulations to carry out this section. In those regulations, the
Secretary shall prescribe the units that are subject to report-
ing in the readiness reporting system, what type of equip-
ment is subject to such reporting, and the elements of the
training establishment and of defense infrastructure that
are subject to such reporting.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
116 the following new item:
‘‘117. Readiness reporting system: establishment; reporting to congressional com-
mittees.’’.
(b) IMPLEMENTATION.—The Secretary of Defense shall
establish and implement the readiness reporting system re-
quired by section 117 of title 10, United States Code, as
added by subsection (a), so as to ensure that the capabilities
required by subsection (c) of that section are attained not
later than July 1, 1999.
(c) IMPLEMENTATION PLAN.—Not later than March 1,
1999, the Secretary of Defense shall submit to Congress a
report setting forth the Secretary’s plan for implementation
of section 117 of title 10, United States Code, as added by
subsection (a).
(d) REPEAL OF QUARTERLY READINESS REPORT RE-
QUIREMENT.—Effective July 1, 1999, or the date on which
the first report of the Secretary of Defense is submitted
under section 117(d) of title 10, United States Code, as
added by subsection (a), whichever is later—
(1) section 482 of title 10, United States Code,
is repealed; and
(2) the table of sections at the beginning of chap-
ter 23 of such title is amended by striking out the
item relating to that section.
SEC. 368. TRAVEL BY RESERVISTS ON CARRIERS UNDER
CONTRACT WITH GENERAL SERVICES ADMIN-
ISTRATION.
(a) RESERVE USE OF FEDERAL SUPPLY TRANSPOR-
TATION.—Chapter 1217 of title 10, United States Code, is
amended by adding at the end the following new section:
‘‘§ 12603. Travel: use of carriers under contract with
General Services Administration
‘‘A member of a reserve component who requires trans-
portation in order to perform inactive duty training may
use a carrier under contract with the General Services Ad-
ministration to provide the transportation. The transpor-
tation shall be provided by the carrier in the same manner
as transportation is provided to members of the armed
forces and civilian employees who are traveling at Govern-
ment expense, except that the Reserve is responsible for the
cost of the travel at the contract rate. The Secretary con-
cerned may require the Reserve to use a Government ap-
proved travel card to ensure that the transportation is pro-
cured for the purpose of performing inactive duty train-
ing.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
such chapter is amended by adding at the end the following
new item:
‘‘12603. Travel: use of carriers under contract with General Services Administra-
tion.’’.
Subtitle G—Demonstration of Com-
mercial-Type 
Practices 
To
Improve 
Quality 
of 
Personal
Property Shipments
SEC. 381. DEMONSTRATION PROGRAM REQUIRED.
(a) IN GENERAL.—The Secretary of Defense shall con-
duct a demonstration program, to be known as the ‘‘Com-
mercial-Like Activities for Superior Quality Demonstration
Program’’, pursuant to this subtitle to test commercial-style
practices to improve the quality of personal property ship-
ments within the Department of Defense.
(b) DEFINITIONS.—In this subtitle:
(1) The term ‘‘CLASS Demonstration Program’’
means the Commercial-Like Activities for Superior
Quality Demonstration Program required by sub-
section (a).
(2) The term ‘‘affiliated’’ means an entity that
is owned and controlled by another entity or an inde-
pendently owned entity whose day-to-day business op-
erations are controlled by another entity.
(3) The term ‘‘best value CLASS score’’ means a
weighted score that reflects an eligible provider’s past
performance rating score and the schedules of charges
for services provided.
(4) The term ‘‘broker’’ means an entity, de-
scribed in section 13102(2) of title 49, United States
Code, that conducts operations on behalf of the Mili-
tary Traffic Management Command and possesses ap-
propriate authority from the Department of Trans-
portation or an appropriate State regulatory agency
to arrange for the transportation of personal property
in interstate, intrastate, or foreign commerce.
(5) The term ‘‘freight forwarder’’ means an en-
tity that provides the services described in section
13102(8) of title 49, United States Code, in interstate,
intrastate, or foreign commerce and possesses the au-
thority to provide such services from the Department
of Transportation or an appropriate State regulatory
agency.
(6) The term ‘‘motor carrier’’ means an entity
that uses motor vehicles to transport personal prop-
erty in interstate, intrastate, or foreign commerce and
possesses the authority to provide such services from
the Department of Transportation or an appropriate
State regulatory agency.
(7) The term ‘‘motor vehicles’’ has the meaning
given such term in section 13102(14) of title 49,
United States Code.
(8) The term ‘‘move management services pro-
vider’’ means an entity that provides certain services
in connection with the shipment of the household
goods of a member of the Armed Forces, such as ar-
ranging, coordinating, and monitoring the shipment.
(9) The term ‘‘test plan’’ means the plan pre-
pared under section 384 for the conduct of the CLASS
Demonstration Program.
SEC. 382. GOALS OF DEMONSTRATION PROGRAM.
The goals of the CLASS Demonstration Program are
to—
(1) adopt commercial-style practices to improve
the quality of Department of Defense personal prop-
erty shipments within the United States and to for-
eign locations;
(2) adopt simplified acquisition procedures for
the selection of contractors qualified to provide var-
ious types of personal property shipping services and
for the award of individual orders to such contractors;
(3) assure ready access of the Department of De-
fense to a sufficient number of qualified providers of
personal property shipping to permit timely ship-
ments during periods of high demand for such serv-
ices;
(4) assure maximum practicable opportunities
for small business concerns to participate as prime
contractors rather than subcontractors;
(5) empower Installation Transportation Officers
to assure that the personal property shipping needs of
individual members of the Armed Forces are met in
a timely manner by quality contractors who mini-
mize opportunities for damage; and
(6) provide for the expedited resolution of claims
for damaged or lost property through direct settlement
negotiations between the service provider and the
member of the Armed Forces who sustains the loss,
with commercial-like arbitration available to the
member with the assistance of the military depart-
ment concerned.
SEC. 383. PROGRAM PARTICIPANTS.
(a) ELIGIBLE SERVICE PROVIDERS.—(1) Any motor
carrier, freight forwarder, or broker regularly providing
personal property shipping services that is approved by the
Military Traffic Management Command to provide such
services to the Department of Defense is eligible to partici-
pate in the CLASS Demonstration Program. A motor car-
rier providing domestic personal property shipping services
shall not be precluded from providing such services to inter-
national destinations through an affiliated freight for-
warder.
(2) If a motor carrier is affiliated with another motor
carrier or freight forwarder that also seeks qualification to
participate in the CLASS Demonstration Program, the af-
filiate must demonstrate that it also conducts independent
regular motor carrier operations using motor vehicles or
independent freight forwarding services described in sub-
paragraph (A), (B), or (C) of section 13102(8) of title 49,
United States Code. If a freight forwarder is affiliated with
another freight forwarder or motor carrier that also seeks
qualification to participate in the program, the affiliate
must demonstrate that it also conducts regular independent
operations.
(b) MOVE MANAGEMENT SERVICES PROVIDERS.—The
test plan may provide for the participation of a broker pro-
viding move management services. A move management
service provider shall be compensated for providing such
services solely by the Department of Defense. The test plan
shall prohibit a move management services provider from
obtaining a commission (or similar type of payment how-
ever denominated) from a motor carrier or freight for-
warder providing the personal property shipping services.
(c) DEMONSTRATION PROGRAM PARTICIPANTS.—Eli-
gible service providers shall be offered participation in the
CLASS Demonstration Program on the basis of their best
value CLASS score. Each eligible service provider’s best
value CLASS score shall be computed in a manner that
assigns 70 percent of the weighted average to the provider’s
past performance rating and 30 percent to the provider’s
offered prices.
SEC. 384. TEST PLAN.
(a) IN GENERAL.—The CLASS Demonstration Pro-
gram shall be conducted pursuant to a test plan.
(b) COMPONENTS OF THE TEST PLAN.—In addition
to such other matters as the Secretary of Defense considers
appropriate, the test plan shall include the following compo-
nents:
(1) RATING PAST PERFORMANCE.—A past per-
formance rating score shall be developed for each eli-
gible service provider based on—
(A) evaluations from service members who
have received personal property shipping services
during a specified six-month rating period prior
to the commencement of the CLASS Demonstra-
tion Program; or
(B) a rating of comparable personal prop-
erty shipping services provided to non-Depart-
ment of Defense customers during the same rat-
ing period, if an eligible provider did not make
a sufficient number of military personal prop-
erty shipments during the rating period to be as-
signed a rating pursuant to subparagraph (A).
(2) PARTICIPATION BY QUALITY SERVICE PRO-
VIDERS.—A minimum best value CLASS score shall
be established for participation in the CLASS Dem-
onstration Program. In establishing the minimum
score for participation, consideration shall be given to
assuring access to sufficient numbers of service pro-
viders to meet the needs of members of the Armed
Forces during periods of high demand for such per-
sonal property shipping services.