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NATIONAL GUARD AND RESERVE EQUIPMENT
For procurement of aircraft, missiles, tracked
combat vehicles, ammunition, other weapons, and other
procurement for the reserve components of the Armed
Forces; $780,000,000, to remain available for obligation
until September 30, 1999: Provided, That the Chiefs of
the Reserve and National Guard components shall, not
later than 30 days after the enactment of this Act, indi-
vidually submit to the congressional defense committees
the modernization priority assessment for their respective
Reserve or National Guard component.
TITLE IV—RESEARCH, DEVELOPMENT, TEST
AND EVALUATION
RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
ARMY
For expenses necessary for basic and applied sci-
entific research, development, test and evaluation, includ-
ing maintenance, rehabilitation, lease, and operation of
facilities and equipment; $5,062,763,000 to remain avail-
able for obligation until September 30, 1998.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
NAVY
For expenses necessary for basic and applied sci-
entific research, development, test and evaluation, includ-
ing maintenance, rehabilitation, lease, and operation of
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facilities and equipment; $8,208,946,000, to remain
available for obligation until September 30, 1998: Pro-
vided, That funds appropriated in this paragraph which
are available for the V–22 may be used to meet unique
requirements of the Special Operations Forces.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
AIR FORCE
For expenses necessary for basic and applied sci-
entific research, development, test and evaluation, includ-
ing maintenance, rehabilitation, lease, and operation of
facilities and equipment; $14,499,606,000, to remain
available for obligation until September 30, 1998: Pro-
vided, That not less than $1,000,000 of the funds appro-
priated in this paragraph shall be made available only to
assess the budgetary, cost, technical, operational, train-
ing, and safety issues associated with a decision to elimi-
nate development of the F–22B two-seat training variant
of the F–22 advanced tactical fighter: Provided further,
That the assessment required by the preceding proviso
shall be submitted, in classified and unclassified versions,
by the Secretary of the Air Force to the congressional de-
fense committees not later than February 15, 1997: Pro-
vided further, That of the funds made available in this
paragraph, $10,000,000 shall be only for development of
reusable launch vehicle technologies.
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RESEARCH, DEVELOPMENT, TEST AND EVALUATION,
DEFENSE-WIDE
For expenses of activities and agencies of the De-
partment of Defense (other than the military depart-
ments), necessary for basic and applied scientific re-
search, development, test and evaluation; advanced re-
search projects as may be designated and determined by
the Secretary of Defense, pursuant to law; maintenance,
rehabilitation, lease, and operation of facilities and equip-
ment; $9,362,800,000, to remain available for obligation
until September 30, 1998: Provided, That not less than
$304,171,000 of the funds appropriated in this para-
graph shall be made available only for the Sea-Based
Wide Area Defense (Navy Upper-Tier) program.
DEVELOPMENTAL TEST AND EVALUATION, DEFENSE
For expenses, not otherwise provided for, of inde-
pendent activities of the Director, Test and Evaluation in
the direction and supervision of developmental test and
evaluation, including performance and joint developmen-
tal testing and evaluation; and administrative expenses in
connection therewith; $282,038,000, to remain available
for obligation until September 30, 1998.
OPERATIONAL TEST AND EVALUATION, DEFENSE
For expenses, not otherwise provided for, nec-
essary for the independent activities of the Director,
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Operational Test and Evaluation in the direction and su-
pervision of operational test and evaluation, including ini-
tial operational test and evaluation which is conducted
prior to, and in support of, production decisions; joint
operational testing and evaluation; and administrative ex-
penses in connection therewith; $24,968,000, to remain
available for obligation until September 30, 1998.
TITLE V—REVOLVING AND MANAGEMENT
FUNDS
DEFENSE BUSINESS OPERATIONS FUND
For the Defense Business Operations Fund;
$947,900,000.
NATIONAL DEFENSE SEALIFT FUND
For National Defense Sealift Fund programs,
projects, and activities, and for expenses of the National
Defense Reserve Fleet, as established by section 11 of the
Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744);
$1,428,002,000, to remain available until expended: Pro-
vided, That none of the funds provided in this paragraph
shall be used to award a new contract that provides for
the acquisition of any of the following major components
unless such components are manufactured in the United
States: auxiliary equipment, including pumps, for all
ship-board services; propulsion system components (that
is; engines, reduction gears, and propellers); shipboard
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cranes; and spreaders for shipboard cranes: Provided fur-
ther, That the exercise of an option in a contract awarded
through the obligation of previously appropriated funds
shall not be considered to be the award of a new con-
tract: Provided further, That the Secretary of the military
department responsible for such procurement may waive
these restrictions on a case-by-case basis by certifying in
writing to the Committees on Appropriations of the
House of Representatives and the Senate, that adequate
domestic supplies are not available to meet Department
of Defense requirements on a timely basis and that such
an acquisition must be made in order to acquire capabil-
ity for national security purposes.
TITLE VI—OTHER DEPARTMENT OF DEFENSE
PROGRAMS
DEFENSE HEALTH PROGRAM
For expenses, not otherwise provided for, for med-
ical and health care programs of the Department of De-
fense, as authorized by law; $10,207,308,000, of which
$9,937,838,000 shall be for Operation and maintenance,
of which not to exceed three percent shall remain avail-
able 
until 
September 
30, 
1998; 
and 
of 
which
$269,470,000, to remain available for obligation until
September 30, 1999, shall be for Procurement: Provided,
That of the funds appropriated under this heading,
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$14,500,000 shall be made available for obtaining emer-
gency communications services for members of the Armed
Forces and their families from the American National
Red Cross: Provided further, That notwithstanding any
other provision of law, of the funds provided under this
heading, the Secretary of Defense is directed to use and
obligate, within thirty days of enactment of this Act, not
less than $3,400,000 only to permit private sector or
non-Federal physicians who have used and will use the
antibacterial treatment method based upon the excretion
of dead and decaying spherical bacteria to work in con-
junction with the Walter Reed Army Medical Center on
a treatment protocol and related studies for Desert
Storm Syndrome affected veterans.
CHEMICAL AGENTS AND MUNITIONS DESTRUCTION,
DEFENSE
For expenses, not otherwise provided for, nec-
essary for the destruction of the United States stockpile
of lethal chemical agents and munitions in accordance
with the provisions of section 1412 of the Department of
Defense Authorization Act, 1986 (50 U.S.C. 1521), and
for the destruction of other chemical warfare materials
that are not in the chemical weapon stockpile,
$758,447,000, of which $478,947,000 shall be for Oper-
ation and maintenance, $191,200,000 shall be for Pro-
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curement to remain available until September 30, 1999,
and $88,300,000 shall be for Research, development, test
and evaluation to remain available until September 30,
1998: Provided, That of the funds made available under
this heading, $1,000,000 shall be available until expended
only for a Johnston Atoll off-island leave program: Pro-
vided further, That notwithstanding any other provision
of law, the Secretaries concerned may, pursuant to uni-
form regulations prescribe travel and transportation al-
lowances for travel by participants in the off-island leave
program.
DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES,
DEFENSE
(INCLUDING TRANSFER OF FUNDS)
For drug interdiction and counter-drug activities
of the Department of Defense, for transfer to appropria-
tions available to the Department of Defense for military
personnel of the reserve components serving under the
provisions of title 10 and title 32, United States Code;
for Operation and maintenance; for Procurement; and for
Research, 
development, 
test 
and 
evaluation;
$807,800,000: Provided, That the funds appropriated by
this paragraph shall be available for obligation for the
same time period and for the same purpose as the appro-
priation to which transferred: Provided further, That the
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transfer authority provided in this paragraph is in addi-
tion to any transfer authority contained elsewhere in this
Act.
OFFICE OF THE INSPECTOR GENERAL
For expenses and activities of the Office of the In-
spector General in carrying out the provisions of the In-
spector General Act of 1978, as amended; $139,157,000,
of which $137,157,000 shall be for Operation and main-
tenance, of which not to exceed $500,000 is available for
emergencies and extraordinary expenses to be expended
on the approval or authority of the Inspector General,
and payments may be made on his certificate of necessity
for confidential military purposes; and of which
$2,000,000, to remain available until September 30,
1999, shall be for Procurement.
TITLE VII—RELATED AGENCIES
CENTRAL INTELLIGENCE AGENCY RETIREMENT AND
DISABILITY SYSTEM FUND
For payment to the Central Intelligence Agency
Retirement and Disability System Fund, to maintain
proper funding level for continuing the operation of the
Central Intelligence Agency Retirement and Disability
System; $196,400,000.
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INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT
For necessary expenses of the Intelligence Com-
munity Management Account; $129,164,000: Provided,
That of the funds appropriated under this heading,
$27,000,000 shall be transferred to the Department of
Justice for the National Drug Intelligence Center to sup-
port the Department of Defense’s counterdrug monitor-
ing and detection responsibilities.
PAYMENT TO KAHO’OLAWE ISLAND CONVEYANCE, RE-
MEDIATION, AND ENVIRONMENTAL RESTORATION
FUND
For payment to Kaho’olawe Island Conveyance,
Remediation, and Environmental Restoration Fund, as
authorized by law; $10,000,000, to remain available until
expended.
NATIONAL SECURITY EDUCATION TRUST FUND
For the purposes of title VIII of Public Law 102–
183, $5,100,000, to be derived from the National Secu-
rity Education Trust Fund, to remain available until ex-
pended.
TITLE VIII—GENERAL PROVISIONS
SEC. 8001. No part of any appropriation con-
tained in this Act shall be used for publicity or propa-
ganda purposes not authorized by the Congress.
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SEC. 8002. During the current fiscal year, provi-
sions of law prohibiting the payment of compensation to,
or employment of, any person not a citizen of the United
States shall not apply to personnel of the Department of
Defense: Provided, That salary increases granted to di-
rect and indirect hire foreign national employees of the
Department of Defense funded by this Act shall not be
at a rate in excess of the percentage increase authorized
by law for civilian employees of the Department of De-
fense whose pay is computed under the provisions of sec-
tion 5332 of title 5, United States Code, or at a rate in
excess of the percentage increase provided by the appro-
priate host nation to its own employees, whichever is
higher: Provided further, That this section shall not apply
to Department of Defense foreign service national em-
ployees serving at United States diplomatic missions
whose pay is set by the Department of State under the
Foreign Service Act of 1980: Provided further, That the
limitations of this provision shall not apply to foreign na-
tional employees of the Department of Defense in the Re-
public of Turkey.
SEC. 8003. No part of any appropriation con-
tained in this Act shall remain available for obligation be-
yond the current fiscal year, unless expressly so provided
herein.
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SEC. 8004. No more than 20 per centum of the
appropriations in this Act which are limited for obligation
during the current fiscal year shall be obligated during
the last two months of the fiscal year: Provided, That
this section shall not apply to obligations for support of
active duty training of reserve components or summer
camp training of the Reserve Officers’ Training Corps.
(TRANSFER OF FUNDS)
SEC. 8005. Upon determination by the Secretary
of Defense that such action is necessary in the national
interest, he may, with the approval of the Office of Man-
agement 
and 
Budget, 
transfer 
not 
to 
exceed
$2,000,000,000 of working capital funds of the Depart-
ment of Defense or funds made available in this Act to
the Department of Defense for military functions (except
military construction) between such appropriations or
funds or any subdivision thereof, to be merged with and
to be available for the same purposes, and for the same
time period, as the appropriation or fund to which trans-
ferred: Provided, That such authority to transfer may not
be used unless for higher priority items, based on unfore-
seen military requirements, than those for which origi-
nally appropriated and in no case where the item for
which funds are requested has been denied by Congress:
Provided further, That the Secretary of Defense shall no-
tify the Congress promptly of all transfers made pursu-
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ant to this authority or any other authority in this Act:
Provided further, That no part of the funds in this Act
shall be available to prepare or present a request to the
Committees on Appropriations for reprogramming of
funds, unless for higher priority items, based on unfore-
seen military requirements, than those for which origi-
nally appropriated and in no case where the item for
which reprogramming is requested has been denied by
the Congress.
(TRANSFER OF FUNDS)
SEC. 8006. During the current fiscal year, cash
balances in working capital funds of the Department of
Defense established pursuant to section 2208 of title 10,
United States Code, may be maintained in only such
amounts as are necessary at any time for cash disburse-
ments to be made from such funds: Provided, That trans-
fers may be made between such funds and the ‘‘Foreign
Currency Fluctuations, Defense’’ and ‘‘Operation and
Maintenance’’ appropriation accounts in such amounts as
may be determined by the Secretary of Defense, with the
approval of the Office of Management and Budget, ex-
cept that such transfers may not be made unless the Sec-
retary of Defense has notified the Congress of the pro-
posed transfer. Except in amounts equal to the amounts
appropriated to working capital funds in this Act, no ob-
ligations may be made against a working capital fund to
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procure or increase the value of war reserve material in-
ventory, unless the Secretary of Defense has notified the
Congress prior to any such obligation.
SEC. 8007. Funds appropriated by this Act may
not be used to initiate a special access program without
prior notification 30 calendar days in session in advance
to the congressional defense committees.
SEC. 8008. None of the funds contained in this
Act available for the Civilian Health and Medical Pro-
gram of the Uniformed Services shall be available for
payments to physicians and other non-institutional health
care providers in excess of the amounts allowed in fiscal
year 1996 for similar services, except that: (a) for serv-
ices for which the Secretary of Defense determines an in-
crease is justified by economic circumstances, the allow-
able amounts may be increased in accordance with appro-
priate economic index data similar to that used pursuant
to title XVIII of the Social Security Act; and (b) for serv-
ices the Secretary determines are overpriced based on al-
lowable payments under title XVIII of the Social Security
Act, the allowable amounts shall be reduced by not more
than 15 percent (except that the reduction may be waived
if the Secretary determines that it would impair adequate
access to health care services for beneficiaries). The Sec-
retary shall solicit public comment prior to promulgating
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regulations to implement this section. Such regulations
shall include a limitation, similar to that used under title
XVIII of the Social Security Act, on the extent to which
a provider may bill a beneficiary an actual charge in ex-
cess of the allowable amount.
SEC. 8009. None of the funds provided in this Act
shall be available to initiate (1) a multiyear contract that
employs economic order quantity procurement in excess
of $20,000,000 in any one year of the contract or that
includes an unfunded contingent liability in excess of
$20,000,000, or (2) a contract for advance procurement
leading to a multiyear contract that employs economic
order quantity procurement in excess of $20,000,000 in
any one year, unless the congressional defense commit-
tees have been notified at least thirty days in advance of
the proposed contract award: Provided, That no part of
any appropriation contained in this Act shall be available
to initiate a multiyear contract for which the economic
order quantity advance procurement is not funded at
least to the limits of the Government’s liability: Provided
further, That no part of any appropriation contained in
this Act shall be available to initiate multiyear procure-
ment contracts for any systems or component thereof if
the value of the multiyear contract would exceed
$500,000,000 unless specifically provided in this Act:
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Provided further, That no multiyear procurement contract
can be terminated without 10-day prior notification to
the congressional defense committees: Provided further,
That the execution of multiyear authority shall require
the use of a present value analysis to determine lowest
cost compared to an annual procurement: Provided fur-
ther, That notwithstanding Section 8010 of Public Law
104–61, funds appropriated for the DDG–51 destroyer
program in Public Law 104–61 may be used to initiate
a multiyear contract for the Arleigh Burke class de-
stroyer program.
Funds appropriated in title III of this Act may be
used for multiyear procurement contracts as follows:
Javelin missiles;
Army Tactical Missile System (ATACMS);
MK19–3 grenade machine guns;
M16A2 rifles;
M249 Squad Automatic Weapons;
M4 carbine rifles;
M240B machine guns; and
Arleigh Burke (DDG–51) class destroyers.
SEC. 8010. Within the funds appropriated for the
operation and maintenance of the Armed Forces, funds
are hereby appropriated pursuant to section 401 of title
10, United States Code, for humanitarian and civic as-
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sistance costs under chapter 20 of title 10, United States
Code. Such funds may also be obligated for humanitarian
and civic assistance costs incidental to authorized oper-
ations and pursuant to authority granted in section 401
of chapter 20 of title 10, United States Code, and these
obligations shall be reported to Congress on September
30 of each year: Provided, That funds available for oper-
ation and maintenance shall be available for providing
humanitarian and similar assistance by using Civic Ac-
tion Teams in the Trust Territories of the Pacific Islands
and freely associated states of Micronesia, pursuant to
the Compact of Free Association as authorized by Public
Law 99–239: Provided further, That upon a determina-
tion by the Secretary of the Army that such action is
beneficial for graduate medical education programs con-
ducted at Army medical facilities located in Hawaii, the
Secretary of the Army may authorize the provision of
medical services at such facilities and transportation to
such facilities, on a nonreimbursable basis, for civilian
patients from American Samoa, the Commonwealth of
the Northern Mariana Islands, the Marshall Islands, the
Federated States of Micronesia, Palau, and Guam.
SEC. 8011. (a) During fiscal year 1997, the civil-
ian personnel of the Department of Defense may not be
managed on the basis of any end-strength, and the man-
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agement of such personnel during that fiscal year shall
not be subject to any constraint or limitation (known as
an end-strength) on the number of such personnel who
may be employed on the last day of such fiscal year.
(b) The fiscal year 1998 budget request for the
department of Defense as well as all justification material
and other documentation supporting the fiscal year 1998
Department of Defense budget request shall be prepared
and submitted to the Congress as if subsections (a) and
(b) of this provision were effective with regard to fiscal
year 1998.
(c) Nothing in this section shall be construed to
apply to military (civilian) technicians.
SEC. 8012. Notwithstanding any other provision
of law, none of the funds made available by this Act shall
be used by the Department of Defense to exceed, outside
the fifty United States, its territories, and the District of
Columbia, 125,000 civilian workyears: Provided, That
workyears shall be applied as defined in the Federal Per-
sonnel Manual: Provided further, That workyears ex-
pended in dependent student hiring programs for dis-
advantaged youths shall not be included in this workyear
limitation.
SEC. 8013. None of the funds made available by
this Act shall be used in any way, directly or indirectly,
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to influence congressional action on any legislation or ap-
propriation matters pending before the Congress.
SEC. 8014. (a) None of the funds appropriated by
this Act shall be used to make contributions to the De-
partment of Defense Education Benefits Fund pursuant
to section 2006(g) of title 10, United States Code, rep-
resenting the normal cost for future benefits under sec-
tion 3015(c) of title 38, United States Code, for any
member of the armed services who, on or after the date
of enactment of this Act—
(1) enlists in the armed services for a period of
active duty of less than three years; or
(2) receives an enlistment bonus under section
308a or 308f of title 37, United States Code,
nor shall any amounts representing the normal cost of
such future benefits be transferred from the Fund by the
Secretary of the Treasury to the Secretary of Veterans
Affairs pursuant to section 2006(d) of title 10, United
States Code; nor shall the Secretary of Veterans Affairs
pay such benefits to any such member: Provided, That in
the case of a member covered by clause (1), these limita-
tions shall not apply to members in combat arms skills
or to members who enlist in the armed services on or after
July 1, 1989, under a program continued or established
by the Secretary of Defense in fiscal year 1991 to test
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the cost-effective use of special recruiting incentives in-
volving not more than nineteen noncombat arms skills ap-
proved in advance by the Secretary of Defense: Provided
further, That this subsection applies only to active compo-
nents of the Army.
(b) None of the funds appropriated by this Act
shall be available for the basic pay and allowances of any
member of the Army participating as a full-time student
and receiving benefits paid by the Secretary of Veterans
Affairs from the Department of Defense Education Bene-
fits Fund when time spent as a full-time student is cred-
ited toward completion of a service commitment: Pro-
vided, That this subsection shall not apply to those mem-
bers who have reenlisted with this option prior to October
1, 1987: Provided further, That this subsection applies
only to active components of the Army.
SEC. 8015. None of the funds appropriated by
this Act shall be available to convert to contractor per-
formance an activity or function of the Department of
Defense that, on or after the date of enactment of this
Act, is performed by more than ten Department of De-
fense civilian employees until a most efficient and cost-
effective organization analysis is completed on such activ-
ity or function and certification of the analysis is made
to the Committees on Appropriations of the House of
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Representatives and the Senate: Provided, That this sec-
tion shall not apply to a commercial or industrial type
function of the Department of Defense that: (1) is in-
cluded on the procurement list established pursuant to
section 2 of the Act of June 25, 1938 (41 U.S.C. 47),
popularly referred to as the Javits-Wagner-O’Day Act;
(2) is planned to be converted to performance by a quali-
fied nonprofit agency for the blind or by a qualified non-
profit agency for other severely handicapped individuals
in accordance with that Act; or (3) is planned to be con-
verted to performance by a qualified firm under 51 per-
cent Native American ownership.
(TRANSFER OF FUNDS)
SEC. 8016. Funds appropriated in title III of this
Act for the Department of Defense Pilot Mentor-Protege
Program may be transferred to any other appropriation
contained in this Act solely for the purpose of implement-
ing a Mentor-Protege Program developmental assistance
agreement pursuant to section 831 of the National De-
fense Authorization Act for Fiscal Year 1991 (Public
Law 101–510; 10 U.S.C. 2301 note), as amended, under
the authority of this provision or any other transfer au-
thority contained in this Act.
SEC. 8017. None of the funds in this Act may be
available for the purchase by the Department of Defense
(and its departments and agencies) of welded shipboard
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anchor and mooring chain 4 inches in diameter and
under unless the anchor and mooring chain are manufac-
tured in the United States from components which are
substantially manufactured in the United States: Pro-
vided, That for the purpose of this section manufactured
will include cutting, heat treating, quality control, testing
of chain and welding (including the forging and shot
blasting process): Provided further, That for the purpose
of this section substantially all of the components of an-
chor and mooring chain shall be considered to be pro-
duced or manufactured in the United States if the aggre-
gate cost of the components produced or manufactured in
the United States exceeds the aggregate cost of the com-
ponents produced or manufactured outside the United
States: Provided further, That when adequate domestic
supplies are not available to meet Department of Defense
requirements on a timely basis, the Secretary of the serv-
ice responsible for the procurement may waive this re-
striction on a case-by-case basis by certifying in writing
to the Committees on Appropriations that such an acqui-
sition must be made in order to acquire capability for na-
tional security purposes.
SEC. 8018. None of the funds appropriated by
this Act available for the Civilian Health and Medical
Program of the Uniformed Services (CHAMPUS) shall
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be available for the reimbursement of any health care
provider for inpatient mental health service for care re-
ceived when a patient is referred to a provider of inpa-
tient mental health care or residential treatment care by
a medical or health care professional having an economic
interest in the facility to which the patient is referred:
Provided, That this limitation does not apply in the case
of inpatient mental health services provided under the
program for the handicapped under subsection (d) of sec-
tion 1079 of title 10, United States Code, provided as
partial hospital care, or provided pursuant to a waiver
authorized by the Secretary of Defense because of medi-
cal or psychological circumstances of the patient that are
confirmed by a health professional who is not a Federal
employee after a review, pursuant to rules prescribed by
the Secretary, which takes into account the appropriate
level of care for the patient, the intensity of services re-
quired by the patient, and the availability of that care.
SEC. 8019. Funds available in this Act may be
used to provide transportation for the next-of-kin of indi-
viduals who have been prisoners of war or missing in ac-
tion from the Vietnam era to an annual meeting in the
United States, under such regulations as the Secretary of
Defense may prescribe.
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SEC. 8020. Notwithstanding any other provision
of law, during the current fiscal year, the Secretary of
Defense may, by Executive Agreement, establish with
host nation governments in NATO member states a sepa-
rate account into which such residual value amounts ne-
gotiated in the return of United States military installa-
tions in NATO member states may be deposited, in the
currency of the host nation, in lieu of direct monetary
transfers to the United States Treasury: Provided, That
such credits may be utilized only for the construction of
facilities to support United States military forces in that
host nation, or such real property maintenance and base
operating costs that are currently executed through mon-
etary transfers to such host nations: Provided further,
That the Department of Defense’s budget submission for
fiscal year 1998 shall identify such sums anticipated in
residual value settlements, and identify such construction,
real property maintenance or base operating costs that
shall be funded by the host nation through such credits:
Provided further, That all military construction projects
to be executed from such accounts must be previously ap-
proved in a prior Act of Congress: Provided further, That
each such Executive Agreement with a NATO member
host nation shall be reported to the congressional defense
committees, the Committee on International Relations of
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the House of Representatives and the Committee on For-
eign Relations of the Senate thirty days prior to the con-
clusion and endorsement of any such agreement estab-
lished under this provision.
SEC. 8021. None of the funds available to the De-
partment of Defense may be used to demilitarize or dis-
pose of M–1 Carbines, M–1 Garand rifles, M–14 rifles,
.22 caliber rifles, .30 caliber rifles, or M–1911 pistols.
SEC. 8022. Notwithstanding any other provision
of law, none of the funds appropriated by this Act shall
be available to pay more than 50 percent of an amount
paid to any person under section 308 of title 37, United
States Code, in a lump sum.
SEC. 8023. None of the funds appropriated by
this Act shall be available for payments under the De-
partment of Defense contract with the Louisiana State
University Medical Center involving the use of cats for
Brain Missile Wound Research, and the Department of
Defense shall not make payments under such contract
from funds obligated prior to the date of the enactment
of this Act, except as necessary for costs incurred by the
contractor prior to the enactment of this Act: Provided,
That funds necessary for the care of animals covered by
this contract are allowed.
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SEC. 8024. Of the funds made available by this
Act in title III, Procurement, $8,000,000, drawn pro rata
from each appropriations account in title III, shall be
available for incentive payments authorized by section
504 of the Indian Financing Act of 1974, 25 U.S.C.
1544. These payments shall be available only to contrac-
tors which have submitted subcontracting plans pursuant
to 15 U.S.C. 637(d), and according to regulations which
shall be promulgated by the Secretary of Defense within
90 days of the passage of this Act.
SEC. 8025. None of the funds provided in this Act
or any other Act shall be available to conduct bone trau-
ma research at any Army Research Laboratory until the
Secretary of the Army certifies that the synthetic
compound to be used in the experiments is of such a type
that its use will result in a significant medical finding,
the research has military application, the research will be
conducted in accordance with the standards set by an
animal care and use committee, and the research does
not duplicate research already conducted by a manufac-
turer or any other research organization.
SEC. 8026. During the current fiscal year, none of
the funds available to the Department of Defense may be
used to procure or acquire (1) defensive handguns unless
such handguns are the M9 or M11 9mm Department of
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Defense standard handguns, or (2) offensive handguns
except for the Special Operations Forces: Provided, That
the foregoing shall not apply to handguns and ammuni-
tion for marksmanship competitions.
SEC. 8027. No more than $500,000 of the funds
appropriated or made available in this Act shall be used
for any single relocation of an organization, unit, activity
or function of the Department of Defense into or within
the National Capital Region: Provided, That the Sec-
retary of Defense may waive this restriction on a case-
by-case basis by certifying in writing to the Congressional
defense committees that such a relocation is required in
the best interest of the Government.
SEC. 8028. During the current fiscal year, funds
appropriated or otherwise available for any Federal agen-
cy, the Congress, the judicial branch, or the District of
Columbia may be used for the pay, allowances, and bene-
fits of an employee as defined by section 2105 of title 5
or an individual employed by the government of the Dis-
trict of Columbia, permanent or temporary indefinite,
who—
(1) is a member of a Reserve component of the
Armed Forces, as described in section 261 of title
10, or the National Guard, as described in section
101 of title 32;
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(2) performs, for the purpose of providing mili-
tary aid to enforce the law or providing assistance
to civil authorities in the protection or saving of life
or property or prevention of injury—
(A) Federal service under sections 331,
332, 333, or 12406 of title 10, or other provi-
sion of law, as applicable, or
(B) full-time military service for his or her
State, the District of Columbia, the Common-
wealth of Puerto Rico, or a territory of the
United States; and
(3) requests and is granted—
(A) leave under the authority of this sec-
tion; or
(B) annual leave, which may be granted
without regard to the provisions of sections
5519 and 6323(b) of title 5, if such employee
is otherwise entitled to such annual leave:
Provided, That any employee who requests leave under
subsection (3)(A) for service described in subsection (2)
of this section is entitled to such leave, subject to the pro-
visions of this section and of the last sentence of section
6323(b) of title 5, and such leave shall be considered leave
under section 6323(b) of title 5.
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SEC. 8029. None of the funds appropriated by
this Act shall be available to perform any cost study pur-
suant to the provisions of OMB Circular A–76 if the
study being performed exceeds a period of twenty-four
months after initiation of such study with respect to a
single function activity or forty-eight months after initi-
ation of such study for a multi-function activity.
SEC. 8030. Funds appropriated by this Act for
the American Forces Information Service shall not be
used for any national or international political or psycho-
logical activities.
SEC. 8031. Notwithstanding any other provision
of law or regulation, the Secretary of Defense may adjust
wage rates for civilian employees hired for certain health
care occupations as authorized for the Secretary of Veter-
ans Affairs by section 7455 of title 38, United States
Code.
SEC. 8032. None of the funds appropriated or
made available in this Act shall be used to reduce or dis-
establish the operation of the 53rd Weather Reconnais-
sance Squadron of the Air Force Reserve, if such action
would reduce the WC–130 Weather Reconnaissance mis-
sion below the levels funded in this Act.
SEC. 8033. (a) Of the funds for the procurement
of supplies or services appropriated by this Act, qualified
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nonprofit agencies for the blind or other severely handi-
capped shall be afforded the maximum practicable oppor-
tunity to participate as subcontractors and supplies in
the performance of contracts let by the Department of
Defense.
(b) During the current fiscal year, a business con-
cern which has negotiated with a military service or de-
fense agency a subcontracting plan for the participation
by small business concerns pursuant to section 8(d) of
the Small Business Act (15 U.S.C. 637(d)) shall be given
credit toward meeting that subcontracting goal for any
purchases made from qualified nonprofit agencies for the
blind or other severely handicapped.
(c) For the purpose of this section, the phrase
‘‘qualified nonprofit agency for the blind or other severely
handicapped’’ means a nonprofit agency for the blind or
other severely handicapped that has been approved by the
Committee for the Purchase from the Blind and Other
Severely Handicapped under the Javits-Wagner-O’Day
Act (41 U.S.C. 46–48).
SEC. 8034. During the current fiscal year, net re-
ceipts pursuant to collections from third party payers
pursuant to section 1095 of title 10, United States Code,
shall be made available to the local facility of the uni-
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formed services responsible for the collections and shall
be over and above the facility’s direct budget amount.
SEC. 8035. During the current fiscal year, the
Department of Defense is authorized to incur obligations
of not to exceed $350,000,000 for purposes of specified
in section 2350j(c) of title 10, United States Code, in an-
ticipation of receipt of contributions, only from the Gov-
ernment of Kuwait, under that section: Provided, That,
upon receipt, such contributions from the Government of
Kuwait shall be credited to the appropriations or fund
which incurred such obligations.
SEC. 8036. Of the funds made available in this
Act, not less than $23,626,000 shall be available for the
Civil Air Patrol, of which $19,926,000 shall be available
for Operation and maintenance.
SEC. 8037. (a) None of the funds appropriated in
this Act are available to establish a new Department of
Defense (department) federally funded research and de-
velopment center (FFRDC), either as a new entity, or as
a separate entity administrated by an organization man-
aging another FFRDC, or as a nonprofit membership
corporation consisting of a consortium of other FFRDCs
and other non-profit entities.
(b) LIMITATION ON COMPENSATION.—No member
of a Board of Directors, Trustees, Overseers, Advisory
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Group, Special Issues Panel, Visiting Committee, or any
similar entity of a defense FFRDC, and no paid consult-
ant to any defense FFRDC, may be compensated for his
or her services as a member of such entity, or as a paid
consultant, except under the same conditions, and to the
same extent, as members of the Defense Science Board:
Provided, That a member of any such entity referred to
previously in this subsection shall be allowed travel ex-
penses and per diem as authorized under the Federal
Joint Travel Regulations, when engaged in the perform-
ance of membership duties.
(c) Notwithstanding any other provision of law,
none of the funds available to the department from any
source during fiscal year 1997 may be used by a defense
FFRDC, through a fee or other payment mechanism, for
charitable contributions, for construction of new build-
ings, for payment of cost sharing for projects funded by
government grants, or for absorption of contract over-
runs.
(d) Notwithstanding any other provision of law, of
the funds available to the department during fiscal year
1997, not more than 5,975 staff years of technical effort
(staff years) may be funded for defense FFRDCs: Pro-
vided, That of the specific amount referred to previously
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in this subsection, not more than 1,088 staff years may
be funded for the defense studies and analysis FFRDCs.
(e) Notwithstanding any other provision of law,
the Secretary of Defense shall control the total number
of staff years to be performed by defense FFRDCs dur-
ing fiscal year 1997 so as to reduce the total amounts
appropriated in titles II, III, and IV of this Act by
$52,286,000: Provided, That the total amounts appro-
priated in titles II, III, and IV of this Act are hereby re-
duced by $52,286,000 to reflect savings from the use of
defense FFRDCs by the department.
(f) Within 60 days after enactment of this Act,
the Secretary of Defense shall submit to the Congres-
sional defense committees a report presenting the specific
amounts of staff years of technical effort to be allocated
by the department for each defense FFRDC during fiscal
year 1997: Provided, That, after the submission of the
report required by this subsection, the department may
not reallocate more than five percent of an FFRDC’s
staff years among other defense FFRDCs until 30 days
after a detailed justification for any such reallocation is
submitted to the Congressional defense committees.
(g) The Secretary of Defense shall, with the sub-
mission of the department’s fiscal year 1998 budget re-
quest, submit a report presenting the specific amounts of
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staff years of technical effort to be allocated for each de-
fense FFRDC during that fiscal year.
(h) The total amounts appropriated to or for the
use of the department in titles II, III, and IV of this Act
are hereby further reduced by $102,286,000 to reflect
savings from the decreased use of non-FFRDC consult-
ing services by the department.
(i) No part of the reductions contained in sub-
sections (e) and (h) of this section may be applied
against any budget activity, activity group, subactivity
group, line item, program element, program, project, sub-
project or activity which does not fund defense FFRDC
activities or non-FFRDC consulting services within each
appropriation account.
(j) Not later than 90 days after enactment of this
Act, the Secretary of Defense shall submit to the con-
gressional defense committees a report listing the specific
funding reductions allocated to each category listed in
subsection (i) above pursuant to this section.
SEC. 8038. None of the funds in this or any other
Act shall be available for the preparation of studies on—
(a) the feasibility of removal and transportation
of unitary chemical weapons or agents from the
eight chemical storage sites within the continental
United States to Johnston Atoll: Provided, That this
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prohibition shall not apply to General Accounting
Office studies requested by a Member of Congress or
a Congressional Committee; and
(b) the potential future uses of the nine chemi-
cal disposal facilities other than for the destruction
of stockpile chemical munitions and as limited by
section 1412(c)(2), Public Law 99–145: Provided,
That this prohibition does not apply to future use
studies for the CAMDS facility at Tooele, Utah.
SEC. 8039. None of the funds appropriated or
made available in this Act shall be used to procure car-
bon, alloy or armor steel plate for use in any Govern-
ment-owned facility or property under the control of the
Department of Defense which were not melted and rolled
in the United States or Canada: Provided, That these
procurement restrictions shall apply to any and all Fed-
eral Supply Class 9515, American Society of Testing and
Materials (ASTM) or American Iron and Steel Institute
(AISI) specifications of carbon, alloy or armor steel plate:
Provided further, That the Secretary of the military de-
partment responsible for the procurement may waive this
restriction on a case-by-case basis by certifying in writing
to the Committees on Appropriations of the House of
Representatives and the Senate that adequate domestic
supplies are not available to meet Department of Defense
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requirements on a timely basis and that such an acquisi-
tion must be made in order to acquire capability for na-
tional security purposes: Provided further, That these re-
strictions shall not apply to contracts which are in being
as of the date of enactment of this Act.
SEC. 8040. For the purposes of this Act, the term
‘‘congressional defense committees’’ means the National
Security Committee of the House of Representatives, the
Armed Services Committee of the Senate, the subcommit-
tee on Defense of the Committee on Appropriations of
the Senate, and the subcommittee on National Security
of the Committee on Appropriations of the House of Rep-
resentatives.
SEC. 8041. During the current fiscal year, the
Department of Defense may acquire the modification,
depot maintenance and repair of aircraft, vehicles and
vessels as well as the production of components and other
Defense-related articles, through competition between De-
partment of Defense depot maintenance activities and
private firms: Provided, That the Senior Acquisition Ex-
ecutive of the military department or defense agency con-
cerned, with power of delegation, shall certify that suc-
cessful bids include comparable estimates of all direct
and indirect costs for both public and private bids: Pro-
vided further, That Office of Management and Budget
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Circular A–76 shall not apply to competitions conducted
under this section.
SEC. 8042. (a)(1) If the Secretary of Defense,
after consultation with the United States Trade Rep-
resentative, determines that a foreign country which is
party to an agreement described in paragraph (2) has
violated the terms of the agreement by discriminating
against certain types of products produced in the United
States that are covered by the agreement, the Secretary
of Defense shall rescind the Secretary’s blanket waiver of
the Buy American Act with respect to such types of prod-
ucts produced in that foreign country.
(2) An agreement referred to in paragraph (1) is
any reciprocal defense procurement memorandum of un-
derstanding, between the United States and a foreign
country pursuant to which the Secretary of Defense has
prospectively waived the Buy American Act for certain
products in that country.
(b) The Secretary of Defense shall submit to Con-
gress a report on the amount of Department of Defense
purchases from foreign entities in fiscal year 1997. Such
report shall separately indicate the dollar value of items
for which the Buy American Act was waived pursuant to
any agreement described in subsection (a)(2), the Trade
Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any
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international agreement to which the United States is a
party.
(c) For purposes of this section, the term ‘‘Buy
American Act’’ means title III of the Act entitled ‘‘An
Act making appropriations for the Treasury and Post Of-
fice Departments for the fiscal year ending June 30,
1934, and for other purposes’’, approved March 3, 1933
(41 U.S.C. 10a et seq.).
SEC. 8043. Appropriations contained in this Act
that remain available at the end of the current fiscal year
as a result of energy cost savings realized by the Depart-
ment of Defense shall remain available for obligation for
the next fiscal year to the extent, and for the purposes,
provided in section 2865 of title 10, United States Code.
SEC. 8044. During the current fiscal year and
hereafter, voluntary separation incentives payable under
10 U.S.C. 1175 may be paid in such amounts as are nec-
essary from the assets of the Voluntary Separation In-
centive Fund established by section 1175(h)(1).
(INCLUDING TRANSFER OF FUNDS)
SEC. 8045. Amounts deposited during the current
fiscal year to the special account established under 40
U.S.C. 485(h)(2) and to the special account established
under 10 U.S.C. 2667(d)(1) are appropriated and shall
be available until transferred by the Secretary of Defense
to current applicable appropriations or funds of the De-
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partment of Defense under the terms and conditions
specified by 40 U.S.C. 485(h)(2) (A) and (B) and 10
U.S.C. 2667(d)(1)(B), to be merged with and to be avail-
able for the same time period and the same purposes as
the appropriation to which transferred.
SEC. 8046. During the current fiscal year, appro-
priations available to the Department of Defense may be
used to reimburse a member of a reserve component of
the Armed Forces who is not otherwise entitled to travel
and transportation allowances and who occupies transient
government housing while performing active duty for
training or inactive duty training: Provided, That such
members may be provided lodging in kind if transient
government quarters are unavailable as if the member
was entitled to such allowances under subsection (a) of
section 404 of title 37, United States Code: Provided fur-
ther, That if lodging in kind is provided, any authorized
service charge or cost of such lodging may be paid di-
rectly from funds appropriated for operation and mainte-
nance of the reserve component of the member concerned.
SEC. 8047. The President shall include with each
budget for a fiscal year submitted to the Congress under
section 1105 of title 31, United States Code, materials
that shall identify clearly and separately the amounts re-
quested in the budget for appropriation for that fiscal
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year for salaries and expenses related to administrative
activities of the Department of Defense, the military de-
partments, and the Defense Agencies.
SEC. 8048. Notwithstanding any other provision
of law, funds available for ‘‘Drug Interdiction and
Counter-Drug Activities, Defense’’ may be obligated for
the Young Marines program.
SEC. 8049. During the current fiscal year,
amounts contained in the Department of Defense Over-
seas Military Facility Investment Recovery Account es-
tablished by section 2921(c)(1) of the National Defense
Authorization Act of 1991 (Public Law 101–510; 10
U.S.C. 2687 note) shall be available until expended for
the payments specified by section 2921(c)(2) of that Act.
SEC. 8050. During the current fiscal year and
hereafter, annual payments granted under the provisions
of section 4416 of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 106
Stat. 2714) shall be made from appropriations in this
Act which are available for the pay of reserve component
personnel.
SEC. 8051. Of the funds appropriated or other-
wise made available by this Act, not more than
$119,200,000 shall be available for payment of the oper-
ating costs of NATO Headquarters: Provided, That the
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Secretary of Defense may waive this section for Depart-
ment of Defense support provided to NATO forces in and
around the former Yugoslavia.
SEC. 8052. During the current fiscal year, appro-
priations which are available to the Department of De-
fense for operation and maintenance may be used to pur-
chase items having an investment item unit cost of not
more than $100,000.
SEC. 8053. During the current fiscal year and
hereafter, appropriations available for the pay and allow-
ances of active duty members of the Armed Forces shall
be available to pay the retired pay which is payable pur-
suant to section 4403 of Public Law 102–484 (10 U.S.C.
1293 note) under the terms and conditions provided in
section 4403.
SEC. 8054. (a) During the current fiscal year,
none of the appropriations or funds available to the De-
fense Business Operations Fund shall be used for the
purchase of an investment item for the purpose of acquir-
ing a new inventory item for sale or anticipated sale dur-
ing the current fiscal year or a subsequent fiscal year to
customers of the Defense Business Operations Fund if
such an item would not have been chargeable to the De-
fense Business Operations Fund during fiscal year 1994
and if the purchase of such an investment item would be
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chargeable during the current fiscal year to appropria-
tions made to the Department of Defense for procure-
ment.
(b) The fiscal year 1998 budget request for the
Department of Defense as well as all justification mate-
rial and other documentation supporting the fiscal year
1998 Department of Defense budget shall be prepared
and submitted to the Congress on the basis that any
equipment which was classified as an end item and fund-
ed in a procurement appropriation contained in this Act
shall be budgeted for in a proposed fiscal year 1998 pro-
curement appropriation and not in the supply manage-
ment business area or any other area or category of the
Defense Business Operations Fund.
SEC. 8055. None of the funds provided in this Act
shall be available for use by a Military Department to
modify an aircraft, weapon, ship or other item of equip-
ment, that the Military Department concerned plans to
retire or otherwise dispose of within five years after com-
pletion of the modification: Provided, That this prohibi-
tion shall not apply to safety modifications: Provided fur-
ther, That this prohibition may be waived by the Sec-
retary of a Military Department if the Secretary deter-
mines it is in the best national security interest of the
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United States to provide such waiver and so notifies the
congressional defense committees in writing.
SEC. 8056. None of the funds appropriated by
this Act for programs of the Central Intelligence Agency
shall remain available for obligation beyond the current
fiscal year, except for funds appropriated for the Reserve
for Contingencies, which shall remain available until Sep-
tember 30, 1998.
SEC. 8057. Notwithstanding any other provision
of law, funds made available in this Act for the Defense
Intelligence Agency may be used for the design, develop-
ment, and deployment of General Defense Intelligence
Program intelligence communications and intelligence in-
formation systems for the Services, the Unified and Spec-
ified Commands, and the component commands.
SEC. 8058. (a) Notwithstanding any other provi-
sion of law, funds appropriated in this Act for the High
Performance Computing Modernization Program shall be
made available only for the acquisition, modernization
and sustainment of supercomputing capability and capac-
ity at Department of Defense (DoD) science and tech-
nology sites under the cognizance of the Director of De-
fense Research and Engineering and DoD test and eval-
uation facilities under the Director of Test and Evalua-
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tion, OUSD (A&T): Provided, That these funds shall be
awarded based on user-defined requirements.
(b) Of the funds appropriated in this Act under
the 
heading 
‘‘Procurement, 
Defense-Wide’’,
$124,735,000 shall be made available for the High Per-
formance Computing Modernization Program. Of the
total funds made available for the program pursuant to
this subsection, $20,000,000 shall be for the Army High
Performance Computing Research Center.
SEC. 8059. Of the funds appropriated by the De-
partment of Defense under the heading ‘‘Operation and
Maintenance, Defense-Wide’’, not less than $8,000,000
shall be made available only for the mitigation of environ-
mental impacts, including training and technical assist-
ance to tribes, related administrative support, the gather-
ing of information, documenting of environmental dam-
age, and developing a system for prioritization of mitiga-
tion, on Indian lands resulting from Department of De-
fense activities.
SEC. 8060. Amounts collected for the use of the
facilities of the National Science Center for Communica-
tions and Electronics during the current fiscal year pur-
suant to section 1459(g) of the Department of Defense
Authorization Act, 1986, and deposited to the special ac-
count established under subsection 1459(g)(2) of that
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Act are appropriated and shall be available until ex-
pended for the operation and maintenance of the Center
as provided for in subsection 1459(g)(2).
SEC. 8061. None of the funds appropriated in this
Act may be used to fill the commander’s position at any
military medical facility with a health care professional
unless the prospective candidate can demonstrate profes-
sional administrative skills.
SEC. 8062. (a) None of the funds appropriated in
this Act may be expended by an entity of the Department
of Defense unless the entity, in expending the funds,
complies with Buy American Act. For purposes of this
subsection, the term ‘‘Buy American Act’’ means title III
of the Act entitled ‘‘An Act making appropriations for
the Treasury and Post Office Departments for the fiscal
year ending June 30, 1934, and for other purposes’’, ap-
proved March 3, 1933 (41 U.S.C. 10a et seq.).
(b) If the Secretary of Defense determines that a
person has been convicted of intentionally affixing a label
bearing a ‘‘Made in America’’ inscription to any product
sold in or shipped to the United States that is not made
in America, the Secretary shall determine, in accordance
with section 2410f of title 10, United States Code,
whether the person should be debarred from contracting
with the Department of Defense.
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(c) In the case of any equipment or products pur-
chased with appropriations provided under this Act, it is
the sense of the Congress that any entity of the Depart-
ment of Defense, in expending the appropriation, pur-
chase only American-made equipment and products, pro-
vided that American-made equipment and products are
cost-competitive, quality-competitive, and available in a
timely fashion.
SEC. 8063. None of the funds appropriated by
this Act shall be available for a contract for studies, anal-
ysis, or consulting services entered into without competi-
tion on the basis of an unsolicited proposal unless the
head of the activity responsible for the procurement de-
termines—
(1) as a result of thorough technical evaluation,
only one source is found fully qualified to perform
the proposed work, or
(2) the purpose of the contract is to explore an
unsolicited proposal which offers significant sci-
entific or technological promise, represents the prod-
uct of original thinking, and was submitted in con-
fidence by one source, or
(3) the purpose of the contract is to take ad-
vantage of unique and significant industrial accom-
plishment by a specific concern, or to insure that a
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new product or idea of a specific concern is given fi-
nancial support:
Provided, That this limitation shall not apply to contracts
in an amount of less than $25,000, contracts related to
improvements of equipment that is in development or pro-
duction, or contracts as to which a civilian official of the
Department of Defense, who has been confirmed by the
Senate, determines that the award of such contract is in
the interest of the national defense.
SEC. 8064. Funds appropriated by this Act for in-
telligence activities are deemed to be specifically author-
ized by the Congress for purposes of section 504 of the
National Security Act of 1947 (50 U.S.C. 414).
SEC. 8065. Notwithstanding section 142 of H.R.
3230, the National Defense Authorization Act for Fiscal
Year 1997, as passed by the Senate on September 10,
1996, of the funds provided in title VI of this Act, under
the heading ‘‘Chemical Agents and Munitions Destruc-
tion, Defense’’, $40,000,000 shall only be available for
the conduct of a pilot program to identify and dem-
onstrate not less than two alternatives to the baseline in-
cineration process for the demilitarization of assembled
chemical munitions: Provided, That the Under Secretary
of Defense for Acquisition and Technology shall, not later
than December 1, 1996, designate a program manager
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who is not, nor has been, in direct or immediate control
of the baseline reverse assembly incineration demilitariza-
tion program to carry out the pilot program: Provided
further, That the Under Secretary of Defense for Acquisi-
tion and Technology shall evaluate the effectiveness of
each alternative chemical munitions demilitarization tech-
nology identified and demonstrated under the pilot pro-
gram to demilitarize munitions and assembled chemical
munitions while meeting all applicable Federal and State
environmental and safety requirements: Provided further,
That the Under Secretary of Defense for Acquisition and
Technology shall transmit, by December 15 of each year,
a report to the congressional defense committees on the
activities carried out under the pilot program during the
preceding fiscal year in which the report is to be made:
Provided further, That section 142(f)(3) of H.R. 3230,
the National Defense Authorization Act for Fiscal Year
1997, as passed by the Senate on September 10, 1996,
is repealed: Provided further, That no funds may be obli-
gated for the construction of a baseline incineration facil-
ity at the Lexington Blue Grass Army Depot or the
Pueblo Depot activity until 180 days after the Secretary
of Defense has submitted to the congressional defense
committees a report detailing the effectiveness of each al-
ternative chemical munitions demilitarization technology
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identified and demonstrated under the pilot program and
its ability to meet the applicable safety and environ-
mental requirements: Provided further, That none of the
funds in this or any other Act may be obligated for the
preparation of studies, assessments, or planning of the
removal and transportation of stockpile assembled uni-
tary chemical weapons or neutralized chemical agent to
any of the eight chemical weapons storage sites within
the continental United States.
SEC. 8066. (a) None of the funds made available
by this Act may be obligated for design, development, ac-
quisition, or operation of more than 47 Titan IV expend-
able launch vehicles, or for satellite mission-model plan-
ning for a Titan IV requirement beyond 47 vehicles.
(b) $59,600,000 made available in this Act for
Research, Development, Test and Evaluation, Air Force,
may only be obligated for development of a new family
of medium-lift and heavy-lift expendable launch vehicles
evolved from existing technologies.
SEC. 8067. None of the funds available to the De-
partment of Defense in this Act may be used to establish
additional field operating agencies of any element of the
Department during fiscal year 1997, except for field op-
erating agencies funded within the National Foreign In-
telligence Program: Provided, That the Secretary of De-
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fense may waive this section by certifying to the House
and Senate Committees on Appropriations that the cre-
ation of such field operating agencies will reduce either
the personnel and/or financial requirements of the De-
partment of Defense.
SEC. 8068. Notwithstanding section 303 of Public
Law 96–487 or any other provision of law, the Secretary
of the Navy is authorized to lease real and personal prop-
erty at Naval Air Facility, Adak, Alaska, pursuant to 10
U.S.C. 2667(f), for commercial, industrial or other pur-
poses.
SEC. 8069. Notwithstanding any other provision
of law, for resident classes entering the war colleges after
September 30, 1997, the Department of Defense shall re-
quire that not less than 20 percent of the total of United
States military students at each war college shall be from
military departments other than the hosting military de-
partment: Provided, That each military department will
recognize the attendance at a sister military department
war college as the equivalent of attendance at its own
war college for promotion and advancement of personnel.
(RESCISSIONS)
SEC. 8070. Of the funds provided in Department
of Defense Appropriations Acts, the following funds are
hereby rescinded from the following accounts in the speci-
fied amounts:
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‘‘Procurement of Ammunition, Army, 1995/
1997’’, $4,500,000;
‘‘Aircraft Procurement, Navy, 1995/1997’’,
$8,000,000;
‘‘Procurement of Ammunition, Navy and Ma-
rine Corps, 1995/1997’’, $2,000,000;
‘‘Other 
Procurement, 
Navy, 
1995/1997’’,
$10,000,000;
‘‘Aircraft Procurement, Air Force, 1995/1997’’,
$3,100,000;
‘‘Missile Procurement, Air Force, 1995/1997’’,
$31,900,000;
‘‘Aircraft Procurement, Navy, 1996/1998’’,
$5,400,000;
‘‘Procurement of Ammunition, Navy and Ma-
rine Corps, 1996/1998’’, $12,708,000;
‘‘Aircraft Procurement, Air Force, 1996/1998’’,
$9,000,000;
‘‘Missile Procurement, Air Force, 1996/1998’’,
$20,000,000;
‘‘Other Procurement, Air Force, 1996/1998’’,
$26,000,000;
‘‘Research, Development, Test and Evaluation,
Navy 1996/1997’’, $4,500,000.
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SEC. 8071. None of the funds provided in this Act
may be obligated for payment on new contracts on which
allowable costs charged to the government include pay-
ments for individual compensation at a rate in excess of
$250,000 per year.
SEC. 8072. Of the funds appropriated in the De-
partment of Defense Appropriations Act, 1996 (Public
Law 104–61), under the heading ‘‘Other Procurement,
Army’’, the Department of the Army shall grant
$477,000 to the Kansas Unified School District 207 for
the purpose of integrating schools at Fort Leavenworth
into the existing fiber optic network on post.
SEC. 8073. None of the funds available in this Act
may be used to reduce the authorized positions for mili-
tary (civilian) technicians of the Army National Guard,
the Air National Guard, Army Reserve and Air Force Re-
serve for the purpose of applying any administratively
imposed civilian personnel ceiling, freeze, or reduction on
military (civilian) technicians, unless such reductions are
a direct result of a reduction in military force structure.
SEC. 8074. None of the funds appropriated or
otherwise made available in this Act may be obligated or
expended for assistance to the Democratic People’s Re-
public of North Korea unless specifically appropriated for
that purpose.
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SEC. 8075. During the current fiscal year, funds
appropriated in this Act are available to compensate
members of the National Guard for duty performed pur-
suant to a plan submitted by a Governor of a State and
approved by the Secretary of Defense under section 112
of title 32, United States Code: Provided, That during
the performance of such duty, the members of the Na-
tional Guard shall be under State command and control:
Provided further, That such duty shall be treated as full-
time National Guard duty for purposes of sections 12602
(a)(2) and (b)(2) of title 10, United States Code.
SEC. 8076. Funds appropriated in this Act for op-
eration and maintenance of the Military Departments,
Unified and Specified Commands and Defense Agencies
shall be available for reimbursement of pay, allowances
and other expenses which would otherwise be incurred
against appropriations for the National Guard and Re-
serve when members of the National Guard and Reserve
provide intelligence support to Unified Commands, De-
fense Agencies and Joint Intelligence Activities, including
the activities and programs included within the General
Defense Intelligence Program and the Consolidated
Cryptologic Program: Provided, That nothing in this sec-
tion authorizes deviation from established Reserve and
National Guard personnel and training procedures.
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SEC. 8077. During the current fiscal year, none of
the funds appropriated in this Act may be used to reduce
the civilian medical and medical support personnel as-
signed to military treatment facilities below the Septem-
ber 30, 1996 level: Provided, That the Service Surgeons
General may waive this section by certifying to the con-
gressional defense committees that the beneficiary popu-
lation is declining in some catchment areas and civilian
strength reductions may be consistent with responsible
resource stewardship and capitation-based budgeting.
SEC. 8078. All refunds or other amounts collected
in the administration of the Civilian Health and Medical
Program of the Uniformed Services (CHAMPUS) shall
be credited to current year appropriations.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8079. None of the funds appropriated in this
Act may be transferred to or obligated from the Penta-
gon Reservation Maintenance Revolving Fund, unless the
Secretary of Defense certifies that the total cost for the
planning, design, construction and installation of equip-
ment for the renovation of the Pentagon Reservation will
not exceed $1,118,000,000.
SEC. 8080. (a) None of the funds available to the
Department of Defense for any fiscal year for drug inter-
diction or counter-drug activities may be transferred to
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any other department or agency of the United States ex-
cept as specifically provided in an appropriations law.
(b) None of the funds available to the Central In-
telligence Agency for any fiscal year for drug interdiction
and counter-drug activities may be transferred to any
other department or agency of the United States except
as specifically provided in an appropriations law.
(TRANSFER OF FUNDS)
SEC. 8081. Appropriations available in this Act
under the heading ‘‘Operation and Maintenance, Defense-
Wide’’ for increasing energy and water efficiency in Fed-
eral buildings may, during their period of availability, be
transferred to other appropriations or funds of the De-
partment of Defense for projects related to increasing en-
ergy and water efficiency, to be merged with and to be
available for the same general purposes, and for the same
time period, as the appropriation or fund to which trans-
ferred.
SEC. 8082. None of the funds appropriated by
this Act may be used for the procurement of ball and
roller bearings other than those produced by a domestic
source and of domestic origin: Provided, That the Sec-
retary of the military department responsible for such
procurement may waive this restriction on a case-by-case
basis by certifying in writing to the Committees on Ap-
propriations of the House of Representatives and the
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Senate, that adequate domestic supplies are not available
to meet Department of Defense requirements on a timely
basis and that such an acquisition must be made in order
to acquire capability for national security purposes.
SEC. 8083. Notwithstanding any other provision
of law, funds available to the Department of Defense
shall be made available to provide transportation of medi-
cal supplies and equipment, on a nonreimbursable basis,
to American Samoa: Provided, That notwithstanding any
other provision of law, funds available to the Department
of Defense shall be made available to provide transpor-
tation of medical supplies and equipment, on a non-
reimbursable basis, to the Indian Health Service when it
is in conjunction with a civil-military project.
SEC. 8084. None of the funds in this Act may be
used to purchase any supercomputer which is not manu-
factured in the United States, unless the Secretary of
Defense certifies to the congressional defense committees
that such an acquisition must be made in order to ac-
quire capability for national security purposes that is not
available from United States manufacturers.
SEC. 8085. Notwithstanding any other provision
of law, the Naval shipyards of the United States shall be
eligible to participate in any manufacturing extension
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program financed by funds appropriated in this or any
other Act.
SEC. 8086. None of the funds appropriated by
this Act shall be available to lease or charter a vessel in
excess of seventeen months (inclusive of any option peri-
ods) to transport fuel or oil for the Department of De-
fense if the vessel was constructed after October 1, 1995
unless the Secretary of Defense requires that the vessel
be constructed in the United States with a double hull
under the long-term lease or charter authority provided
in section 2401 note of title 10, United States Code: Pro-
vided, That this limitation shall not apply to contracts in
force on the date of enactment of this Act: Provided fur-
ther, That by 1997 at least 20 percent of annual leases
and charters must be for ships of double hull design con-
structed after October 1, 1995 if available in numbers
sufficient to satisfy this requirement: Provided further,
That the Military Sealift Command shall plan to achieve
the goal of eliminating single hull ship leases by the year
2015.
(TRANSFER OF FUNDS)
SEC. 8087. In addition to amounts appropriated
or otherwise made available by this Act, $300,000,000 is
hereby appropriated to the Department of Defense and
shall be available only for transfer to the United States
Coast Guard.
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SEC. 8088. Notwithstanding any other provision
in this Act, the total amount appropriated in this Act is
hereby reduced by $150,000,000 to reflect savings from
reduced carryover of activities funded through the De-
fense Business Operations Fund, to be distributed as fol-
lows: ‘‘Operation and Maintenance, Army’’, $60,000,000;
and ‘‘Operation and Maintenance, Navy’’, $90,000,000.
SEC. 8089. Notwithstanding any other provision
of law, each contract awarded by the Department of De-
fense during the current fiscal year for construction or
service performed in whole or in part in a State which
is not contiguous with another State and has an unem-
ployment rate in excess of the national average rate of
unemployment as determined by the Secretary of Labor,
shall include a provision requiring the contractor to em-
ploy, for the purpose of performing that portion of the
contract in such State that is not contiguous with an-
other State, individuals who are residents of such State
and who, in the case of any craft or trade, possess or
would be able to acquire promptly the necessary skills:
Provided, That the Secretary of Defense may waive the
requirements of this section, on a case-by-case basis, in
the interest of national security.
SEC. 8090. During the current fiscal year, the
Army shall use the former George Air Force Base as the
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airhead for the National Training Center at Fort Irwin:
Provided, That none of the funds in this Act shall be obli-
gated or expended to transport Army personnel into Ed-
wards Air Force Base for training rotations at the Na-
tional Training Center.
SEC. 8091. (a) The Secretary of Defense shall
submit, on a quarterly basis, a report to the congres-
sional defense committees, the Committee on Inter-
national Relations of the House of Representatives and
the Committee on Foreign Relations of the Senate setting
forth all costs (including incremental costs) incurred by
the Department of Defense during the preceding quarter
in implementing or supporting resolutions of the United
Nations Security Council, including any such resolution
calling for international sanctions, international peace-
keeping operations, and humanitarian missions under-
taken by the Department of Defense. The quarterly re-
port shall include an aggregate of all such Department
of Defense costs by operation or mission.
(b) The Secretary of Defense shall detail in the
quarterly reports all efforts made to seek credit against
past United Nations expenditures and all efforts made to
seek compensation from the United Nations for costs in-
curred by the Department of Defense in implementing
and supporting United Nations activities.
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SEC. 8092 (a) LIMITATION ON TRANSFER OF DE-
FENSE ARTICLES AND SERVICES.—Notwithstanding any
other provision of law, none of the funds available to the
Department of Defense for the current fiscal year may be
obligated or expended to transfer to another nation or an
international organization any defense articles or services
(other than intelligence services) for use in the activities
described in subsection (b) unless the congressional de-
fense committees, the Committee on International Rela-
tions of the House of Representatives, and the Committee
on Foreign Relations of the Senate are notified 15 days
in advance of such transfer.
(b) COVERED ACTIVITIES.—(1) This section ap-
plies to—
(A) any international peacekeeping or peace-en-
forcement operation under the authority of chapter
VI or chapter VII of the United Nations Charter
under the authority of a United Nations Security
Council resolution; and
(B) any other international peacekeeping,
peace-enforcement, or humanitarian assistance oper-
ation.
(c) REQUIRED NOTICE.—A notice under sub-
section (a) shall include the following:
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(1) A description of the equipment, supplies, or
services to be transferred.
(2) A statement of the value of the equipment,
supplies, or services to be transferred.
(3) In the case of a proposed transfer of equip-
ment or supplies—
(A) a statement of whether the inventory
requirements of all elements of the Armed
Forces (including the reserve components) for
the type of equipment or supplies to be trans-
ferred have been met; and
(B) a statement of whether the items pro-
posed to be transferred will have to be replaced
and, if so, how the President proposes to pro-
vide funds for such replacement.
SEC. 8093. To the extent authorized by sub-
chapter VI of Chapter 148 of title 10, United States
Code, the Secretary of Defense shall issue loan guaran-
tees in support of U.S. defense exports not otherwise pro-
vided for: Provided, That the total contingent liability of
the United States for guarantees issued under the au-
thority of this section may not exceed $15,000,000,000:
Provided further, That the exposure fees charged and col-
lected by the Secretary for each guarantee, shall be paid
by the country involved and shall not be financed as part
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of a loan guaranteed by the United States: Provided fur-
ther, That the Secretary shall provide quarterly reports to
the Committees on Appropriations, Armed Services and
Foreign Relations of the Senate and the Committees on
Appropriations, National Security and International Re-
lations in the House of Representatives on the implemen-
tation of this program: Provided further, That amounts
charged for administrative fees and deposited to the spe-
cial account provided for under section 2540c(d) of title
10, shall be available for paying the costs of administra-
tive expenses of the Department of Defense that are at-
tributable to the loan guarantee program under sub-
chapter VI of Chapter 148 of title 10.
SEC. 8094. None of the funds available to the De-
partment of Defense shall be obligated or expended to
make a financial contribution to the United Nations for
the cost of an United Nations peacekeeping activity
(whether pursuant to assessment or a voluntary contribu-
tion) or for payment of any United States arrearage to
the United Nations.
SEC. 8095. None of the funds available to the De-
partment of Defense under this Act shall be obligated or
expended to pay a contractor under a contract with the
Department of Defense for costs of any amount paid by
the contractor to an employee when—
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(1) such costs are for a bonus or otherwise in
excess of the normal salary paid by the contractor
to the employee; and
(2) such bonus is part of restructuring costs as-
sociated with a business combination.
SEC. 8096. The amount otherwise provided by
this Act for ‘‘Operation and Maintenance, Air Force’’ is
hereby reduced by $194,500,000, to reflect a reduction in
the pass-through to the Air Force business areas of the
Defense Business Operations Fund.
SEC. 8097. (a) None of the funds appropriated or
otherwise made available in this Act may be used to
transport or provide for the transportation of chemical
munitions or agents to the Johnston Atoll for the pur-
pose of storing or demilitarizing such munitions or
agents.
(b) The prohibition in subsection (a) shall not
apply to any obsolete World War II chemical munition or
agent of the United States found in the World War II
Pacific Theater of Operations.
(c) The President may suspend the application of
subsection (a) during a period of war in which the United
States is a party.
SEC. 8098. None of the funds provided in title II
of this Act for ‘‘Former Soviet Union Threat Reduction’’
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may be obligated or expended to finance housing for any
individual who was a member of the military forces of the
Soviet Union or for any individual who is or was a mem-
ber of the military forces of the Russian Federation.
SEC. 8099. During the current fiscal year, no
more than $15,000,000 of appropriations made in this
Act under the heading ‘‘Operation and Maintenance, De-
fense-Wide’’ may be transferred to appropriations avail-
able for the pay of military personnel, to be merged with,
and to be available for the same time period as the ap-
propriations to which transferred, to be used in support
of such personnel in connection with support and services
for eligible organizations and activities outside the De-
partment of Defense pursuant to section 2012 of title 10,
United States Code.
SEC. 8100. Beginning in fiscal year 1997 and
thereafter, and notwithstanding any other provision of
law, fixed and mobile telecommunications support shall
be provided by the White House Communications Agency
(WHCA) to the United States Secret Service (USSS),
without reimbursement, in connection with the Secret
Service’s duties directly related to the protection of the
President or the Vice President or other officer imme-
diately next in order of succession to the office of the
President at the White House Security Complex in the
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Washington, D.C. Metropolitan Area and Camp David,
Maryland. For these purposes, the White House Security
Complex includes the White House, the White House
grounds, the Old Executive Office Building, the New Ex-
ecutive Office Building, the Blair House, the Treasury
Building, and the Vice President’s Residence at the
Naval Observatory.
SEC. 8101. None of the funds provided in this Act
may be obligated or expended for the sale of zinc in the
National Defense Stockpile if zinc commodity prices de-
cline more than five percent below the London Metals
Exchange market price reported on the date of enact-
ment of this Act.
SEC. 8102. For purposes of section 1553(b) of
title 31, United States Code, any subdivision of appro-
priations made in this Act under the heading ‘‘Shipbuild-
ing and Conversion, Navy’’ shall be considered to be for
the same purpose as any subdivision under the heading
‘‘Shipbuilding and Conversion, Navy’’ appropriations in
any prior year, and the one percent limitation shall apply
to the total amount of the appropriation.
SEC. 8103. During the current fiscal year, and
notwithstanding 31 U.S.C. 1552(a), not more than
$107,000,000 appropriated under the heading ‘‘Aircraft
Procurement, Air Force’’ in Public Law 101–511 and not
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more than $15,000,000 appropriated under the heading
‘‘Aircraft Procurement, Air Force’’ in Public Law 102–
172 which were available and obligated for the B–2 Air-
craft Program shall remain available for expenditure and
for adjusting obligations for such Program until Septem-
ber 30, 2002.
SEC. 8104. During the current fiscal year, in the
case of an appropriation account of the Department of
Defense for which the period of availability for obligation
has expired or which has closed under the provisions of
section 1552 of title 31, United States Code, and which
has a negative unliquidated or unexpended balance, an
obligation or an adjustment of an obligation may be
charged to any current appropriation account for the
same purpose as the expired or closed account if—
(1) the obligation would have been properly
chargeable (except as to amount) to the expired or
closed account before the end of the period of avail-
ability or closing of that account;
(2) the obligation is not otherwise properly
chargeable to any current appropriation account of
the Department of Defense; and
(3) in the case of an expired account, the obli-
gation is not chargeable to a current appropriation
of the Department of Defense under the provisions
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of section 1405(b)(8) of the National Defense Au-
thorization Act for Fiscal Year 1991, Public Law
101–510, as amended (31 U.S.C. 1551 note): Pro-
vided, That in the case of an expired account, if sub-
sequent review or investigation discloses that there
was not in fact a negative unliquidated or unex-
pended balance in the account, any charge to a cur-
rent account under the authority of this section shall
be reversed and recorded against the expired ac-
count: Provided further, That the total amount
charged to a current appropriation under this sec-
tion may not exceed an amount equal to one percent
of the total appropriation for that account.
(TRANSFER OF FUNDS)
SEC. 8105. Upon enactment of this Act, the Sec-
retary of Defense shall make the following transfers of
funds: Provided, That the amounts transferred shall be
available for the same purposes as the appropriations to
which transferred, and for the same time period as the
appropriation from which transferred: Provided further,
That the amounts shall be transferred between the fol-
lowing appropriations in the amount specified:
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1985/1995’’:
CG–47 cruiser program, $4,300,000;
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For craft, outfitting, and post delivery,
$2,000,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1985/1995’’:
DDG–51 destroyer program, $6,300,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1986/1996’’:
LHD–1 amphibious assault ship program,
$2,154,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1986/1996’’:
For craft, outfitting and post delivery,
$2,154,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1987/1996’’:
T–AO fleet oiler program, $1,095,000;
Oceanographic ship program, $735,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1987/1996’’:
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For craft, outfitting, and post delivery,
$1,830,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1989/2000’’:
T–AO fleet oiler program, $6,571,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1989/2000’’:
SSN–21 
attack 
submarine 
program,
$6,571,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1991/2001’’:
DDG–51 destroyer program, $12,687,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1991/2001’’:
LHD–1 amphibious assault ship program,
$9,387,000;
MHC 
coastal 
mine 
hunter 
program,
$3,300,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1992/1996’’:
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For escalation, $1,600,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1992/1996’’:
MHC 
coastal 
mine 
hunter 
program,
$1,600,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1993/1997’’:
DDG–51 destroyer program, $5,000,000;
LSD–41 
cargo 
variant 
ship 
program,
$2,700,000;
For craft, outfitting, post delivery, and first
destination transportation, and inflation adjust-
ment, $1,577,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1993/1997’’:
AOE 
combat 
support 
ship 
program,
$9,277,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1995/1999’’:
Carrier 
replacement 
program,
$18,023,000;
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To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1993/1997’’:
MHC 
coastal 
mine 
hunter 
program,
$6,700,000;
AOE 
combat 
support 
ship 
program,
$11,323,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1994/1998’’:
LHD–1 amphibious assault ship program,
$4,100,000;
Mine warfare command and control ship,
$1,000,000;
For craft, outfitting, post delivery, and
first destination transportation, $2,000,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1995/1999’’:
Carrier replacement program, $9,477,000;
From:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1996/2000’’:
NSSN–1 (AP), $3,791,000;
DDG–51 destroyer program, $4,075,000;
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CVN Refuelings, $5,212,000;
LHD–1 
amphibious 
ship 
program,
$16,800,000;
T–AGS–64 multi-purpose oceanographic
survey ship, $375,000;
For craft, outfitting, post delivery, conver-
sions and first destination transportation,
$11,770,000;
To:
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1994/1998’’:
DDG–51 destroyer program, $41,800,000;
and
Under the heading, ‘‘Shipbuilding and Conver-
sion, Navy, 1995/1999’’:
For craft, outfitting, post delivery, conver-
sions and first destination transportation,
$16,800,000.
SEC. 8106. (a) The Secretary of Defense shall re-
quire not later than June 30, 1997, each disbursement
by the Department of Defense in an amount in excess of
$3,000,000 be matched to a particular obligation before
the disbursement is made.
(b) The Secretary shall ensure that a disburse-
ment in excess of the threshold amount applicable under
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section (a) is not divided into multiple disbursements of
less than that amount for the purpose of avoiding the ap-
plicability of such section to that disbursement.
SEC. 8107. Notwithstanding any other provision
of law, the Air Force shall not introduce any new sup-
plier for the remaining production units for the AN/
ALE–47 Countermeasures Dispenser System without
conducting a full and open competition that will include,
but not be limited to, small businesses.
SEC. 8108. The Under Secretary of Defense
(Comptroller) shall submit to the congressional defense
committees a detailed report identifying, by amount and
by separate budget activity, activity group, subactivity
group, line item, program element, program, project, sub-
project, and activity, any activity for which the fiscal year
1998 budget request was reduced because Congress ap-
propriated funds above the President’s budget request for
that specific activity for fiscal year 1997.
SEC. 8109. In applying section 9005 of the De-
partment of Defense Appropriations Act, 1993, Public
Law 102–396 (10 U.S.C. 2241 note), during the current
fiscal year and thereafter—
(1) the term ‘‘synthetic fabric and coated syn-
thetic fabric’’ shall be deemed to include all textile
fibers and yarns that are for use in such fabrics; and
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(2) such section shall be treated, notwithstand-
ing section 34 of Public Law 93–400 (41 U.S.C.
430), as being applicable to contracts and sub-
contracts for the procurement of commercial items
that are articles or items, specialty metals, or tools
covered by that section 9005.
SEC. 8110. Notwithstanding any other provision
of law, including Section 2304(j) of title 10, United
States Code, of the funds appropriated under the heading
‘‘Aircraft Procurement, Navy’’ in Public Law 104–61,
$45,000,000 shall be made available only for acquisition
of T–39N aircraft, associated ground-based training sys-
tem (GBTS), service life extension related components
and parts, associated equipment, and data that meet the
Undergraduate Flight Officer (UNFO) training require-
ments by procurement of the T–39N aircraft currently
being used by the Navy for UNFO training under a serv-
ices contract.
SEC. 8111. TRADEOFF STUDY OF CURRENT AND
FUTURE DEEP-STRIKE CAPABILITIES.—
(1) The Secretary of Defense shall carry out
the deep-strike tradeoff study announced by the
President to study tradeoffs between bombers, land
and sea-based tactical aircraft, and missiles capable
of striking targets in an enemy’s rear area.
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(2) The Secretary of Defense shall establish an
ad hoc review committee under the auspices of the
Defense Science Board to establish the methodologi-
cal approach to the tradeoff study, to establish a
broad range of stressing scenarios of interest, and to
review assumptions regarding the analysis to be con-
ducted.
(3) The ad hoc review committee to be estab-
lished under paragraph (2) shall include among its
members analysts who have performed or partici-
pated in bomber tradeoff analysis, retired military
personnel with broad experience in recent conven-
tional warfare operations, and experts on the logis-
tics of both initial deployment and sustaining sup-
port. These members shall be selected without re-
gard for current service on the Defense Science
Board.
(4) After submitting its recommendations for
the conduct of the deep-strike tradeoff study to the
Secretary of Defense, the ad hoc review committee
shall continue to meet regularly to review prelimi-
nary results of the analysis and to recommend addi-
tional variations in assumptions that may be re-
quired to illuminate particular force tradeoff issues.
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SEC. 8112. Notwithstanding 31 U.S.C. 1552(a),
of the funds provided in Department of Defense Appro-
priations Acts, not more than the specified amounts of
funds from the following accounts shall remain available
for the payment of satellite on-orbit incentive fees until
the fees are paid:
‘‘Missile Procurement, Air Force, 1990/1992’’,
$17,800,000;
‘‘Missile Procurement, Air Force, 1991/1993’’,
$19,330,000;
‘‘Missile Procurement, Air Force, 1992/1994’’,
$23,570,000;
‘‘Missile Procurement, Air Force, 1993/1995’’,
$16,780,000;
‘‘Missile Procurement, Air Force, 1994/1996’’,
$16,780,000.
SEC. 8113. TACTICAL AIRCRAFT REQUIREMENT
STUDY.—The Secretary of Defense and the Chairman of
the Joint Chiefs of Staff shall carry out a joint study
under the direct supervision of the Joint Requirements
Oversight Council (JROC) assessing future tactical air-
craft requirements across service jurisdictions. This study
shall determine the best and most affordable mix of
weapon systems to carry out different mission areas and
shall include recommendations for changes to the planned
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numbers and types of tactical aircraft to be developed
and procured over the next ten years if appropriate. Such
report shall be submitted to the congressional defense
committees no later than March 30, 1997.
SEC. 8114. None of the funds available to the De-
partment of the Navy may be used to enter into any con-
tract for the overhaul, repair, or maintenance of any
naval vessel homeported on the West Coast of the United
States which includes charges for interport differential as
an evaluation factor for award.
SEC. 8115. (a) None of the funds available to the
Department of Defense under this Act may be obligated
or expended to reimburse a defense contractor for re-
structuring costs associated with a business combination
of the defense contractor that occurs after the date of en-
actment of this Act unless:
(1) the auditable savings for the Department of
Defense resulting from the restructuring will exceed
the costs allowed by a factor of at least two to one,
or
(2) the savings for the Department of Defense
resulting from the restructuring will exceed the costs
allowed and the Secretary of Defense determines
that the business combination will result in the pres-
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ervation of a critical capability that might otherwise
be lost to the Department, and
(3) the report required by Section 818(e) of
Public Law 103–337 to be submitted to Congress in
1996 is submitted.
(b) Not later than April 1, 1997, the Comptroller
General shall, in consultation with the Inspector General
of the Department of Defense, the Secretary of Defense,
and the Secretary of Labor, submit to Congress a report
which shall include the following:
(1) an analysis and breakdown of the restruc-
turing costs paid by or submitted to the Department
of Defense to companies involved in business com-
binations since 1993;
(2) an analysis of the specific costs associated
with workforce reductions;
(3) an analysis of the services provided to the
workers affected by business combinations;
(4) an analysis of the effectiveness of the re-
structuring costs used to assist laid off workers in
gaining employment;
(5) in accordance with section 818 of Public
Law 103–337, an analysis of the savings reached
from the business combination relative to the re-
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structuring costs paid by the Department of De-
fense.
(c) The report should set forth recommendations
to make this program more effective for workers affected
by business combinations and more efficient in terms of
the use of Federal dollars.
SEC. 8116. Notwithstanding any other provision
of law, none of the funds appropriated in this Act may
be used to purchase, install, replace, or otherwise repair
any lock on a safe or security container which protects
information critical to national security or any other clas-
sified materials and which has not been certified as pass-
ing the security lock specifications contained in regula-
tion FF–L–2740 dated October 12, 1989, and has not
passed all testing criteria and procedures established
through February 28, 1992: Provided, That the Director
of Central Intelligence may waive this provision, on a
case-by-case basis only, upon certification that the above
cited locks are not adequate for the protection of sen-
sitive intelligence information.
SEC. 8117. Section 8110 of Public Law 104–61
(109 Stat. 674) is hereby repealed.
SEC. 8118. The Secretary of Defense, in conjunc-
tion with the Secretary of Labor, shall take such steps
as required to ensure that those Department of Defense
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contractors and other entities subject to section 4212(d)
of title 38, United States Code are aware of, and in com-
pliance with, the requirements of that section regarding
submission of an annual report to the Secretary of Labor
concerning employment of certain veterans: Provided,
That the Secretary of Defense shall ensure that those
Department of Defense contractors and other entities
subject to section 4212(d) of title 38, United States Code
which have contracts with the Department of Defense are
notified of the potential penalties associated with failure
to comply with these annual reporting requirements (in-
cluding potential suspension or debarment from federal
contracting): Provided further, That within 180 days of
enactment of this Act the Secretary of Labor and the
Secretary of Defense shall submit a report to Congress
which—
(1) using the most recent reporting data, de-
tails the number of reports received from Depart-
ment of Defense contractors and the estimated num-
ber of Department of Defense contractors which are
not in compliance with these annual reporting re-
quirements;
(2) describes the steps taken by the Depart-
ments of Labor and Defense in order to ensure com-
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pliance with section 4212(d) of title 38, United
States Code;
(3) describes any additional measures taken or
planned to be taken by the Departments of Labor
and Defense to improve compliance with section
4212(d) of title 38, United States Code pursuant to
this section; and
(4) any further recommendations regarding ad-
ditional action (including changes in existing law)
which may be necessary to improve compliance with
section 4212(d) of title 38, United States Code.
SEC. 8119. Funds appropriated in title II of this
Act for supervision and administration costs for facilities
maintenance and repair, minor construction, or design
projects may be obligated at the time the reimbursable
order is accepted by the performing activity: Provided,
That for the purpose of this section, supervision and ad-
ministration costs includes all in-house Government cost.
SEC. 8120. (a) LIMITATION ON ADVANCE BILL-
ING.—During fiscal year 1997, advance billing for serv-
ices provided or work performed by the Defense Business
Operations Fund activities of the Department of the
Navy in excess of $1,000,000,000 is prohibited.
(b) 
REVISED
RATES; 
ADDITIONAL
SUR-
CHARGES.—In conjunction with the Under Secretary of
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Defense (Comptroller), the Secretary of the Navy shall
develop a plan to revise fiscal year 1997 customer rates
or establish additional surcharges so as to increase reve-
nues to the Defense Business Operations Fund by at
least an additional $500,000,000 in executing orders ac-
cepted during fiscal year 1997.
(c) TRANSFER AUTHORITY.—To the extent nec-
essary to comply with any rate increase or new surcharge
on rates in fiscal year 1997 established under subsection
(b), the Secretary of the Navy shall transfer at least
$500,000,000, from funds made available under sub-
section (d), into customer accounts of the Navy used to
reimburse the Defense Business Operations Fund so as
to provide customers with sufficient resources to pay the
increased customer rates and additional surcharges. The
transfer authority provided by this subsection is in addi-
tion to other transfer authority provided in this Act. The
funds transferred shall be merged with and available for
the same purposes, and for the same time period, as the
appropriation to which transferred.
(d) SOURCE OF FUNDS.—To provide funds for
transfer under subsection (c), the amounts appropriated
elsewhere in this Act for the following appropriation ac-
counts are reduced by 2.0 percent: Aircraft Procurement,
Navy; Weapons Procurement, Navy; Procurement of Am-