that lithographic processes being developed by Amer-
ican-owned manufacturers operating in the United
States will lead to superior performance electronics
systems for the Department of Defense. For purposes
of the preceding sentence, the term ‘American-owned
manufacturers’ means a manufacturing company or
other business entity the majority ownership or con-
trol of which is by United States citizens.’’; and
(2) in subsection (b), by adding at the end the
following new paragraph:
‘‘(3) The Director of the Defense Advanced Research
Projects Agency may set priorities and funding levels for
various technologies being developed for the ALP and shall
consider funding recommendations by the SIA as advi-
sory.’’.
SEC. 215. ENHANCED FIBER OPTIC GUIDED MISSILE SYS-
TEM.
(a) CERTIFICATION.—Not later than December 1,
1995, the Secretary of the Army shall certify to the congres-
sional defense committees whether there is a requirement
for the enhanced fiber optic guided missile (EFOG-M) sys-
tem and whether there is a cost and effectiveness analysis
supporting such requirement.
(b) LIMITATIONS.—(1) The Secretary of the Army may
not obligate more than $280,000,000 (based on fiscal year
1995 constant dollars) to develop and deliver for test and
evaluation by the Army the following items:
(A) 44 EFOG-M test missiles.
(B) 256 fully operational EFOG-M missiles.
(C) 12 fully operational fire units.
(2) The Secretary of the Army may not spend funds
for the EFOG-M system after September 30, 1998, if the
items described in paragraph (1) have not been delivered
to the Army by that date at the cost estimated for such sys-
tem as of the date of the enactment of this Act.
(c) GOVERNMENT-FURNISHED EQUIPMENT.—The Sec-
retary of the Army shall assure that all Government-fur-
nished equipment that the Army agrees to provide under
the contract for the EFOG-M system is provided to the
prime contractor in accordance with the terms of the con-
tract.
SEC. 216. JOINT ADVANCED STRIKE TECHNOLOGY (JAST)
PROGRAM.
(a) ALLOCATION OF FUNDS.—Of the amount appro-
priated pursuant to the authorizations in section 201,
$280,156,000 shall be available for the Joint Advanced
Strike Technology (JAST) program. Of that amount—
(1) $123,795,000 shall be available for PE
63800N;
(2) $125,686,000 shall be available for PE
63800F; and
(3) $30,675,000 shall be available for PE
63800E.
(b) LIMITATION.—Not more than 75 percent of the
amount appropriated for such program pursuant to the au-
thorizations in section 201 may be obligated until a period
of 30 days has expired after the report specified in sub-
section (c) is submitted to the congressional defense commit-
tees.
(c) REPORT.—The Secretary of Defense shall submit
to the congressional defense committees a report, in unclas-
sified and classified form, not later than March 1, 1996,
that sets forth in detail the following information for the
period 1997 through 2005:
(1) What the total joint requirement, under two
major regional contingency (MRC) assumptions, is
for the following:
(A) Numbers of tactical combat aircraft and
the characteristics required of those aircraft in
terms of capabilities, range, and observability-
stealthiness.
(B) Surface- and air-launched standoff pre-
cision guided munitions.
(C) Cruise missiles.
(D) Ground-based systems, such as Ex-
tended Range-Multiple Launch Rocket System
and 
the 
Army 
Tactical 
Missile 
System
(ATACMS), for joint warfighting capability.
(2) What the major regional contingency warn-
ing time assumptions are, and what the effect on fu-
ture tactical fighter/attack aircraft requirements are
using other warning time assumptions.
(3) What requirements exist for the Joint Ad-
vanced Strike Technology program that cannot be met
by existing aircraft or by those in development.
Subtitle C—Ballistic Missile
Defense Act of 1995
SEC. 231. SHORT TITLE.
This subtitle may be cited as the ‘‘Ballistic Missile De-
fense Act of 1995’’.
SEC. 232. BALLISTIC MISSILE DEFENSE POLICY OF THE
UNITED STATES.
It is the policy of the United States—
(1) to deploy at the earliest practical date highly
effective theater missile defenses (TMDs) to protect
forward-deployed and expeditionary elements of the
Armed Forces of the United States and to complement
and support the missile defense capabilities of friend-
ly forces and of allies of the United States; and
(2) to deploy at the earliest practical date a na-
tional missile defense (NMD) system that is capable
of providing a highly effective defense of the United
States against limited ballistic missile attacks.
SEC. 233. IMPLEMENTATION OF POLICY.
(a) TMD DEPLOYMENT.—To implement the policy es-
tablished in section 232(1), the Secretary of Defense shall
develop and deploy at the earliest practical date advanced
theater missile defense (TMD) systems.
(b) NMD SYSTEM ARCHITECTURE.—To implement the
policy established in section 232(2), the Secretary of Defense
shall develop for deployment at the earliest practical date
an affordable, operationally-effective National Missile De-
fense (NMD) system designed to protect the United States
against limited ballistic missile attacks. The system to be
developed for deployment shall include the following:
(1) Up to 100 ground-based interceptors at a
single site or a greater number of interceptors at a
number of sites, as determined necessary by the Sec-
retary.
(2) Fixed, ground-based radars.
(3) Space-based sensors, including, within the
type of space-based sensors known as ABM-adjunct
sensors (such sensors not being prohibited by the ABM
Treaty), those sensor systems (such as the Space and
Missile Tracking System) that are capable of cuing
ground-based anti-ballistic missile interceptors and of
providing initial targeting vectors.
(4) Battle management, command, control, and
communications.
(c) REPORT ON PLAN FOR DEPLOYMENT.—Not later
than 90 days after the date of the enactment of this Act,
the Secretary of Defense shall submit to the congressional
defense committees a report setting forth the Secretary’s
plan for—
(1) the deployment of advanced theater missile
defense (TMD) systems pursuant to subsection (a);
and
(2) the deployment of a national missile defense
system which meets the requirements specified in sub-
section (b).
SEC. 234. FOLLOW-ON TECHNOLOGIES RESEARCH AND DE-
VELOPMENT.
(a) FOLLOW-ON NATIONAL
AND THEATER MISSILE
DEFENSE TECHNOLOGY.—The Secretary shall pursue re-
search and development of technologies and systems related
to national missile defense and theater missile defense in
order to provide future options for—
(1) protecting the United States against limited
ballistic missile attacks; and
(2) defending forward-deployed and expedition-
ary elements of the Armed Forces of the United States
and complementing and supporting the missile de-
fense capabilities of friendly forces and allies of the
United States.
(b) EXCLUSION OF CERTAIN SYSTEMS FROM INITIAL
DEPLOYMENT.—The initial National Missile Defense sys-
tem architecture developed for deployment pursuant to sec-
tion 233(b) may not include—
(1) ground-based or space-based directed energy
weapons; or
(2) space-based interceptors.
SEC. 235. POLICY ON COMPLIANCE WITH THE ABM TREATY.
(a) POLICY CONCERNING SYSTEMS SUBJECT TO ABM
TREATY.—Congress finds that, unless and until a missile
defense system, system upgrade, or system component is
flight tested in an ABM-qualifying flight test (as defined
in subsection (c)), such system, system upgrade, or system
component—
(1) has not, for purposes of the ABM Treaty,
been tested in an ABM mode nor been given capabili-
ties to counter strategic ballistic missiles; and
(2) therefore is not subject to any application,
limitation, or obligation under the ABM Treaty.
(b) PROHIBITIONS.—(1) Funds appropriated to the
Department of Defense may not be obligated or expended
for the purpose of—
(A) prescribing, enforcing, or implementing any
Executive order, regulation, or policy that would
apply the ABM Treaty (or any limitation or obliga-
tion under such Treaty) to research, development,
testing, or deployment of a theater missile defense sys-
tem, a theater missile defense system upgrade, or a
theater missile defense system component; or
(B) taking any other action to provide for the
ABM Treaty (or any limitation or obligation under
such Treaty) to be applied to research, development,
testing, or deployment of a theater missile defense sys-
tem, a theater missile defense system upgrade, or a
theater missile defense system component.
(2) This subsection applies with respect to each missile
defense system, missile defense system upgrade, or missile
defense system component that is capable of countering
modern theater ballistic missiles.
(3) This subsection shall cease to apply with respect
to a missile defense system, missile defense system upgrade,
or missile defense system component when that system, sys-
tem upgrade, or system component has been flight tested
in an ABM-qualifying flight test.
(c) ABM-QUALIFYING FLIGHT TEST DEFINED.—For
purposes of this section, an ABM-qualifying flight test is
a flight test against a ballistic missile which, in that flight
test, exceeds (1) a range of 3,500 kilometers, or (2) a velocity
of 5 kilometers per second.
SEC. 236. BALLISTIC MISSILE DEFENSE PROGRAM AC-
COUNTABILITY.
(a) ANNUAL BMD PROGRAMS REPORT.—The Sec-
retary of Defense shall submit to the congressional defense
committees an annual report describing the technical mile-
stones, schedule, and cost of each ballistic missile defense
program specified in subsection (c).
(b) MATTERS TO BE INCLUDED.—Each report under
subsection (a) shall list all technical milestones, program
schedule milestones, and costs of each phase of development
and acquisition, together with total estimated program
costs, covering the entire life of each program specified in
subsection (c).
(c) COVERED PROGRAMS.—The reports under this sec-
tion shall cover the following programs:
(1) 
Theater 
High 
Altitude 
Area 
Defense
(THAAD).
(2) Patriot Advanced Capability-3.
(3) Navy Lower Tier.
(4) Navy Upper Tier.
(5) Corps Surface-to-Air Missile.
(6) Hawk.
(7) Boost Phase Intercept.
(8) National Missile Defense.
(9) Arrow.
(10) Medium Extended Air Defense.
(11) Any theater missile defense program or na-
tional missile defense program which the Department
of Defense initiates after the date of the enactment of
this Act.
(d) VARIANCE REPORTING REQUIREMENTS.—(1) In
the annual report under this section, the Secretary shall de-
scribe, with respect to each program covered in the report,
any difference in the technical milestones, program schedule
milestones, and costs for that program—
(A) compared with the information relating to
that program in the report submitted in the previous
year; and
(B) compared with the information relating to
that program in the first report submitted under this
section in which that program is covered.
(2) Paragraph (1)(A) shall not apply to the first report
submitted under this section.
(e) DATE OF SUBMISSION.—The report required by
this section for any year shall be submitted not later than
30 days after the date on which the President’s budget for
the next fiscal year is submitted, except that the first report
shall be submitted not later than 90 days after the date of
the enactment of this Act.
SEC. 237. ABM TREATY DEFINED.
For purposes of this subtitle and subtitle D, the term
‘‘ABM Treaty’’ means the Treaty Between the United States
and the Union of Soviet Socialist Republics on the Limita-
tion of Anti-Ballistic Missile Systems, and signed at Mos-
cow on May 26, 1972, and includes Protocols to that Trea-
ty, signed at Moscow on July 3, 1974.
SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991.
The Missile Defense Act of 1991 is repealed.
Subtitle D—Other Ballistic Missile
Defense Provisions
SEC. 241. BALLISTIC MISSILE DEFENSE FUNDING FOR FIS-
CAL YEAR 1996.
Of the amounts authorized to be appropriated pursu-
ant to section 201 for fiscal year 1996 or otherwise made
available to the Department of Defense for fiscal year 1996,
not more than $3,070,199,000 may be obligated for Ballistic
Missile Defense programs.
SEC. 
242. 
POLICY 
CONCERNING 
BALLISTIC 
MISSILE
DEFENSE.
(a) BALLISTIC
MISSILE
DEFENSE
AND
OTHER
COUNTERPROLIFERATION EFFORTS.—The Congress views
the deployment of ballistic missile defenses as a necessary,
but not sufficient, element of a broader strategy to discour-
age both the proliferation of weapons of mass destruction
and the proliferation of means of their delivery and to de-
fend against the consequences of such proliferation. The
Congress, therefore, endorses and supports measures de-
signed to slow or halt the proliferation of advanced tech-
nologies that pose a threat to the safety and security of the
United States and to international stability.
(b) BALLISTIC MISSILE DEFENSE
AND STRATEGIC
STABILITY.—(1) The Congress views the deployment of bal-
listic missile defenses as a strategically stabilizing measure.
(2) The deployment of Theater Missile Defense systems
at the earliest practical date pursuant to section 232(a)(1)
will deny potential adversaries the option of escalating a
conflict by threatening or attacking United States forces,
coalition partners of the United States, or allies of the Unit-
ed States with ballistic missiles armed with weapons of
mass destruction to offset the operational and technical ad-
vantages of the United States and its coalition partners and
allies.
(3) The deployment of a National Missile Defense sys-
tem at the earliest practical date pursuant to section
232(a)(2) against the threat of limited ballistic missile
attacks—
(A) will strengthen deterrence at the levels of
forces agreed to by the United States and Russia
under the Strategic Arms Reduction Talks Treaties
(START–I and START–II); and
(B) would further strengthen deterrence if reduc-
tions below the levels permitted under START–II
should be agreed to in the future.
(c) PRESIDENTIAL DISCUSSIONS WITH OTHER NA-
TIONS.—(1) The Congress—
(A) notes that on the basis of section 235 it is
no longer necessary for the United States to continue
discussions with Russia to clarify the distinction be-
tween ABM and TMD systems and, therefore, urges
the President to discontinue any such discussions;
(B) notes that the ABM Treaty prohibits deploy-
ment of ground-based interceptors in a number that
would be sufficient to assure that the entire continen-
tal United States, Alaska, and Hawaii are defended
against limited ballistic missile attacks; and
(C) notes that past discussions with Russia,
based on Russian President Yeltsin’s proposal for a
Global Protection System, held promise of an agree-
ment to amend the ABM Treaty to allow defense
against a limited ballistic missile attack that would
have included (among other measures) permitted de-
ployment of as many as four ground-based interceptor
sites in addition to the one site currently permitted
under the ABM Treaty and unrestricted exploitation
of ground-based and space-based sensors.
(2) In light of the findings in paragraph (1), Congress
urges the President to pursue high-level discussions with
Russia to amend the ABM Treaty to permit—
(A) deployment of the number of ground-based
ABM sites necessary to provide effective defense of the
entire territory of the United States against limited
ballistic missile attack; and
(B) the unrestricted exploitation of sensors based
within the atmosphere and in space.
(3) It is in the interest of the United States to develop
its own missile defense capabilities in a manner that will
permit the United States to complement and support the
missile defense capabilities developed and deployed by its
allies and possible coalition partners. Therefore, the Con-
gress urges the President—
(A) to pursue high-level discussions with allies
and selected other states on the means and methods by
which the parties on a bilateral basis can cooperate
in the development, deployment, and operation of bal-
listic missile defenses;
(B) to take the initiative within the North Atlan-
tic Treaty Organization to develop consensus in the
Alliance for a timely deployment of effective ballistic
missile defenses by the Alliance; and
(C) in the interim, to seek agreement with allies
and selected other states on steps the parties should
take, consistent with their national interests, to re-
duce the risks posed by the threat of limited ballistic
missile attacks, such steps to include—
(i) the sharing of early warning informa-
tion derived from sensors deployed by the United
States and other states;
(ii) the exchange on a reciprocal basis of
technical data and technology to support both
joint development programs and the sale and
purchase of missile defense systems and compo-
nents; and
(iii) operational level planning to exploit
current missile defense capabilities and to help
define future requirements.
SEC. 243. TESTING OF THEATER MISSILE DEFENSE INTER-
CEPTORS.
Subsection (a) of section 237 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103–
160; 107 Stat. 1600) is amended to read as follows:
‘‘(a) TESTING OF THEATER MISSILE DEFENSE INTER-
CEPTORS.—(1) The Secretary of Defense may not approve
a theater missile defense interceptor program proceeding be-
yond the low-rate initial production acquisition stage until
the Secretary certifies to the congressional defense commit-
tees that such program has successfully completed initial
operational test and evaluation.
‘‘(2) In order to be certified under paragraph (1) as
having been successfully completed, the initial operational
test and evaluation conducted with respect to an intercep-
tors program must have included flight tests—
‘‘(A) that were conducted with multiple intercep-
tors and multiple targets in the presence of realistic
countermeasures; and
‘‘(B) the results of which demonstrate the
achievement by the interceptors of the baseline per-
formance thresholds.
‘‘(3) For purposes of this subsection, the baseline per-
formance thresholds with respect to a program are the
weapons systems performance thresholds specified in the
baseline description for the system established (pursuant to
section 2435(a)(1) of title 10, United States Code) before
the program entered the engineering and manufacturing de-
velopment stage.
‘‘(4) The number of flight tests described in paragraph
(2) that are required in order to make the certification
under paragraph (1) shall be a number determined by the
Secretary of Defense to be sufficient for the purposes of this
section.
‘‘(5) The Secretary may augment live-fire testing to
demonstrate weapons system performance goals for purposes
of the certification under paragraph (1) through the use of
modeling and simulation that is validated by ground and
flight testing.’’.
SEC. 244. REPEAL OF MISSILE DEFENSE PROVISIONS.
The following provisions of law are repealed:
(1) Section 222 of the Department of Defense
Authorization Act, 1986 (Public Law 99–145; 99
Stat. 613; 10 U.S.C. 2431 note).
(2) Section 225 of the Department of Defense
Authorization Act, 1986 (Public Law 99–145; 99
Stat. 614).
(3) Section 226 of the National Defense Author-
ization Act for Fiscal Years 1988 and 1989 (Public
Law 100–180; 101 Stat. 1057; 10 U.S.C. 2431 note).
(4) Section 8123 of the Department of Defense
Appropriations Act, 1989 (Public Law 100–463; 102
Stat. 2270–40).
(5) Section 8133 of the Department of Defense
Appropriations Act, 1992 (Public Law 102–172; 105
Stat. 1211).
(6) Section 234 of the National Defense Author-
ization Act for Fiscal Year 1994 (Public Law 103–
160; 107 Stat. 1595; 10 U.S.C. 2431 note).
Subtitle E—Other Matters
SEC. 251. ALLOCATION OF FUNDS FOR MEDICAL COUNTER-
MEASURES AGAINST BIOWARFARE THREATS.
Section 2370a of title 10, United States Code, is
amended—
(1) in subsection (a), by striking out ‘‘Depart-
ment of Defense—’’ and all that follows through ‘‘not
more than 20 percent’’ and inserting in lieu thereof
‘‘Department of Defense, not more than 50 percent’’;
and
(2) in subsection (b), by striking out paragraph
(2) and redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively.
SEC. 252. ANALYSIS OF CONSOLIDATION OF BASIC RE-
SEARCH ACCOUNTS OF MILITARY DEPART-
MENTS.
(a) ANALYSIS REQUIRED.—The Secretary of Defense
shall conduct an analysis of the cost and effectiveness of
consolidating the basic research accounts of the military de-
partments. The analysis shall determine potential infra-
structure savings and other benefits of co-locating and con-
solidating the management of basic research.
(b) DEADLINE.—On or before March 1, 1996, the Sec-
retary shall submit to the Committee on Armed Services
of the Senate and the Committee on National Security of
the House of Representatives a report on the analysis con-
ducted under subsection (a).
SEC. 253. CHANGE IN REPORTING PERIOD FROM CALENDAR
YEAR TO FISCAL YEAR FOR ANNUAL REPORT
ON CERTAIN CONTRACTS TO COLLEGES AND
UNIVERSITIES.
Section 2361(c)(2) of title 10, United States Code, is
amended—
(1) by striking out ‘‘calendar year’’ and insert-
ing in lieu thereof ‘‘fiscal year’’; and
(2) by striking out ‘‘after the year’’ and insert-
ing in lieu thereof ‘‘after the fiscal year’’.
SEC. 254. MODIFICATION TO UNIVERSITY RESEARCH INI-
TIATIVE SUPPORT PROGRAM.
Section 802 of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1701)
is amended—
(1) in subsections (a) and (b), by striking out
‘‘shall’’ both places it appears and inserting in lieu
thereof ‘‘may’’; and
(2) in subsection (e), by striking out the sentence
beginning with ‘‘Such selection process’’.
SEC. 255. ADVANCED FIELD ARTILLERY SYSTEM (CRU-
SADER).
(a) AUTHORITY TO USE FUNDS FOR ALTERNATIVE
PROPELLANT TECHNOLOGIES.—During fiscal year 1996,
the Secretary of the Army may use funds appropriated for
the liquid propellant portion of the Advanced Field Artil-
lery System (Crusader) program for fiscal year 1996 for
alternative propellant technologies and integration of those
technologies into the design of the Crusader system if—
(1) the Secretary determines that the technical
risk associated with liquid propellant will increase
costs and delay the initial operational capability of
the Crusader system; and
(2) the Secretary notifies the congressional de-
fense committees of the proposed use of the funds and
the reasons for the proposed use of the funds.
(b) LIMITATION.—The Secretary of the Army may not
spend funds for the liquid propellant portion of the Cru-
sader system after August 1, 1996, unless significant
progress has been made toward meeting the objectives set
forth in subsection (c) and the statement described in sub-
section (d) has been submitted to the congressional defense
committees.
(c) OBJECTIVES.—The objectives referred to in sub-
section (b) are the following:
(1) Breech and ignition design criteria for rate
of fire for the cannon of the Crusader system have
been met.
(2) The final ignition concept has been designed
and successfully bench tested for the next prototype of
the cannon of the Crusader system.
(3) Designs to prevent chamber piston reversals
have been tested in a fixed weapons test stand.
(4) The chemistry and physics of propellant
burn resulting from the firing of liquid propellant
into any target zone are fully understood, and pre-
dictable firings have been demonstrated.
(5) An analysis of the management of heat dis-
sipation has been made for the full range of perform-
ance requirements for the cannon, and concept de-
signs supported by that analysis are completed and
proposed for engineering.
(6) Engineering designs to control pressure oscil-
lations in the chamber during firing are proven and
planned for integration into the next prototype of the
cannon.
(7) Fill designs for the cannon chamber that
focus on preventing future chamber explosions have
been electronically simulated and bench tested.
(8) An assessment of the sensitivity of liquid
propellant to contamination by various materials to
which it may be exposed throughout the handling and
operation of the cannon is completed.
(d) STATEMENT.—The statement referred to in sub-
section (b) is a statement submitted to the congressional de-
fense committees not later than March 30, 1996, that con-
tains the following:
(1) An assertion that all the hazards associated
with liquid propellent have been identified and are
controllable to acceptable levels.
(2) An assessment of the technology for each com-
ponent of the Crusader system (the cannon, vehicle,
and crew module). The technology assessment shall in-
clude, for each performance goal of the Crusader sys-
tem (including total system weight), information
about the maturity of the technology to achieve that
goal, the maturity of the design of the technology, and
the manner in which the design has been proven (for
example, through simulation, bench testing, or weap-
on firing).
(3) An assessment of the cost of continued devel-
opment of the Crusader system after August 1, 1996,
the cost of each unit of the Crusader system in the
year the Crusader system will be completed, and the
cost of each unit of the Future Armored Resupply Ve-
hicle (FARV) in the year that vehicle will be com-
pleted.
SEC. 
256. 
REVIEW 
OF 
C4I 
BY 
NATIONAL 
RESEARCH
COUNCIL.
(a) REVIEW BY NATIONAL RESEARCH COUNCIL.—Not
later than 90 days after the date of the enactment of this
Act, the Secretary of Defense shall enter into a contract with
the National Research Council of the National Academy of
Sciences to conduct a comprehensive review of current and
planned service and defense-wide programs for command,
control, communications, computers, and intelligence (C4I)
with a special focus on cross-service and inter-service issues.
(b) MATTERS TO BE ASSESSED IN REVIEW.—The re-
view shall address the following:
(1) The match between the capabilities provided
by current service and defense-wide C4I programs and
the actual needs of users of these programs.
(2) The interoperability of service and defense-
wide C4I systems that are planned to be operational
in the future.
(3) The need for an overall defense-wide architec-
ture for C4I.
(4) Proposed strategies for ensuring that future
C4I acquisitions are compatible and interoperable
with an overall architecture.
(5) Technological and administrative aspects of
the C4I modernization effort to determine the sound-
ness of the underlying plan and the extent to which
it is consistent with concepts for joint military oper-
ations in the future.
(c) TWO-YEAR PERIOD FOR CONDUCTING REVIEW.—
The National Research Council shall conduct the review
over the two-year period beginning upon completion of the
performance of the contract described in subsection (a).
(d) REPORTS.—(1) The National Research Council
shall submit to the Department of Defense and Congress in-
terim reports and progress updates on a regular basis as
the review proceeds. A final report on the review shall set
forth the findings, conclusions, and recommendations of the
Council for defense-wide and service C4I programs and
shall be submitted to the Committee on Armed Services of
the Senate, the Committee on National Security of the
House of Representatives, and the Secretary of Defense.
(2) To the maximum degree possible, the final report
shall be submitted in unclassified form with classified an-
nexes as necessary.
(e) INTERAGENCY COOPERATION WITH STUDY.—All
military departments, defense agencies, and other compo-
nents of the Department of Defense shall cooperate fully
with the National Research Council in its activities in car-
rying out the review under this section.
(f) EXPEDITED PROCESSING
OF SECURITY CLEAR-
ANCES FOR STUDY.—For the purpose of facilitating the
commencement of the study under this section, the Secretary
of Defense shall expedite to the fullest degree possible the
processing of security clearances that are necessary for the
National Research Council to conduct the study.
(g) FUNDING.—Of the amount authorized to be appro-
priated in section 201 for defense-wide activities, $900,000
shall be available for the study under this section.
SEC. 257. FIVE-YEAR PLAN FOR FEDERALLY FUNDED RE-
SEARCH 
AND 
DEVELOPMENT 
CENTERS
(FFRDCS).
(a) FIVE-YEAR PLAN.—The Secretary of Defense, in
consultation with the Secretaries of the military depart-
ments, shall develop a five-year plan to reduce and consoli-
date the activities performed by federally funded research
and development centers (FFRDCs) and establish a frame-
work for the future workload of such centers.
(b) OBJECTIVES.—The plan shall set forth the manner
in which the Secretary of Defense could achieve by October
1, 2000, the following:
(1) Implementation by federally funded research
and development centers of only those core activities,
as defined by the Secretary, that require the unique
capabilities and arrangements afforded by such cen-
ters.
(2) Consolidation of such core level activities into
as few federally funded research and development cen-
ters as is practical and possible.
(3) Acquisition of systems engineering and sys-
tems integration activities currently performed by
federally funded research and development centers
through the use of competitive procedures.
(4) Transfer of the management of the Software
Engineering Initiative activities to the Defense Infor-
mation Systems Agency for purposes of supporting
command, control, communications, computing, and
intelligence (C4I) programs.
(5) Transfer of the management of the core ac-
tivities of Lincoln Laboratory to the Office of the Sec-
retary of Defense.
(6) Acquisition of services provided to the De-
partment of Defense by university-affiliated research
centers (that operate like federally funded research
and development centers) through the use of competi-
tive procedures.
(c) OTHER MATTERS.—The plan also shall include the
following:
(1) An assessment of the number of staff needed
in each federally funded research and development
center during each year over the five years covered by
the plan.
(2) A specific timetable for phasing in the objec-
tives set forth in subsection (b).
(d) REPORT.—Not later than February 1, 1996, the
Secretary of Defense shall submit to the congressional de-
fense committees a report on the plan.
(e) UNDISTRIBUTED REDUCTION.—The total amount
authorized to be appropriated for research, development,
test, and evaluation in section 201 is hereby reduced by
$90,097,000.
SEC. 258. MANUFACTURING TECHNOLOGY PROGRAM.
(a) IN GENERAL.—Section 2525 of title 10, United
States Code, is amended as follows:
(1) The heading is amended by striking out the
second and third words.
(2) Subsection (a) is amended by striking out
‘‘Science and’’.
(3) Subsection (d) is amended—
(A) in paragraph (2)—
(i) by striking out ‘‘or’’ at the end of
subparagraph (A);
(ii) by striking out the period at the
end of subparagraph (B) and inserting in
lieu thereof ‘‘; or’’; and
(iii) by adding at the end the following
new subparagraph:
‘‘(C) will be carried out by an institution of
higher education.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) At least 25 percent of the funds available for the
program each fiscal year shall be used for awarding grants
and entering into contracts, cooperative agreements, and
other transactions on a cost-share basis under which the
ratio of recipient costs to Government costs is two to one.’’.
(b) CLERICAL AMENDMENT.—The item relating to sec-
tion 2525 in the table of sections at the beginning of chapter
148 of title 10, United States Code, is amended to read as
follows:
‘‘2525. Manufacturing technology program.’’.
SEC. 259. FIVE-YEAR PLAN FOR CONSOLIDATION OF DE-
FENSE LABORATORIES AND TEST AND EVAL-
UATION CENTERS.
(a) FIVE-YEAR PLAN.—The Secretary of Defense shall
develop a five-year plan to consolidate and restructure the
laboratories and test and evaluation centers of the Depart-
ment of Defense.
(b) OBJECTIVE.—The plan shall set forth the specific
actions needed to consolidate the laboratories and test and
evaluation centers into as few laboratories and centers as
is practical and possible, in the judgment of the Secretary,
by October 1, 2005.
(c) MATTERS TO BE CONSIDERED.—In developing the
plan, the Secretary shall consider the following:
(1) Consolidation of common support functions,
including the following:
(A) Aircraft (fixed wing and rotary).
(B) Weapons.
(C) Space systems.
(D) Command, control, communications,
computers, and intelligence.
(2) The extent to which any military construc-
tion is planned at the laboratories and centers.
(3) The encroachment on the laboratories and
centers by residential and industrial expansion.
(4) The cost of operations and maintenance at
the laboratories and centers.
(5) The cost of environmental remediation at the
laboratories and centers.
(d) REPORT.—Not later than May 1, 1996, the Sec-
retary of Defense shall submit to the congressional defense
committees a report on the plan.
(e) LIMITATION.—Of the amounts appropriated or oth-
erwise made available pursuant to an authorization in sec-
tion 201 for the central test and evaluation investment de-
velopment program, not more than 40 percent may be obli-
gated before the report required by subsection (d) is submit-
ted to Congress.
SEC. 260. AERONAUTICAL RESEARCH AND TEST CAPABILI-
TIES ASSESSMENT.
(a) POLICY.—(1) It is in the Nation’s long-term na-
tional security interests to maintain preeminence in the
area of aeronautical research and test capabilities.
(2) Continued advances in aeronautical science and
engineering are critical to sustaining the strategic and tac-
tical air superiority of the United States and coalition
forces, as well as United States economic security and inter-
national aerospace leadership.
(3) Encouragement of active Department of Defense
partnership with other Government agencies, academic in-
stitutions, and private industry to develop, maintain, and
enhance aeronautical research and test capabilities is in the
national security and economic interest of the Department
and the United States.
(b) REVIEW.—(1) In pursuit of the aeronautical re-
search and test capabilities policy set forth in subsection
(a), the Secretary of Defense shall conduct a comprehensive
review of the aeronautical research and test facilities and
capabilities of the United States in order to assess the cur-
rent condition of such facilities and capabilities.
(2) The review shall identify options for providing af-
fordable, operable, reliable, and responsive long-term aero-
nautical research and test capabilities for military and ci-
vilian purposes and for the organization and conduct of
such capabilities within the Department or through shared
operations with other Government agencies, academic insti-
tutions, and private industry. The review also shall set forth
in detail the projected costs of such options, including costs
of acquisition and technical and financial arrangements
(including the use of Government facilities for reimbursable
private use).
(c) REPORT.—Not later than March 1, 1996, the Sec-
retary of Defense shall submit to the congressional defense
committees a report setting forth in detail the findings of
the review required by subsection (b). The report shall in-
clude recommendations on the most efficient and economic
means of developing, maintaining, and continually mod-
ernizing aeronautical research and test capabilities to meet
current, planned, and prospective military and civilian
needs.
SEC. 261. LIMITATION ON T–38 AVIONICS UPGRADE PRO-
GRAM.
(a) REQUIREMENT.—The Secretary of Defense shall
ensure that, in evaluating proposals submitted in response
to a solicitation issued for a contract for the T–38 Avionics
Upgrade Program, the proposal of an entity may not be
considered unless—
(1) in the case of an entity that conducts sub-
stantially all of its business in a foreign country, the
foreign country provides equal access to similar con-
tract solicitations in that country to United States
entities; and
(2) in the case of an entity that conducts busi-
ness in the United States but that is owned or con-
trolled by a foreign government or by an entity incor-
porated in a foreign country, the foreign government
or foreign country of incorporation provides equal ac-
cess to similar contract solicitations in that country
to United States entities.
(b) DEFINITION.—In this section, the term ‘‘United
States entity’’ means an entity that is owned or controlled
by persons a majority of whom are United States citizens.
SEC. 262. CROSS REFERENCE TO CONGRESSIONAL DE-
FENSE 
POLICY 
CONCERNING 
NATIONAL
TECHNOLOGY AND INDUSTRIAL BASE, REIN-
VESTMENT, AND CONVERSION IN OPERATION
OF DEFENSE RESEARCH AND DEVELOPMENT
PROGRAMS.
(a) SECTION 2358 PROJECTS.—Section 2358(a)(2)(B)
of title 10, United States Code, is amended by inserting
before the period the following: ‘‘and advance the defense
policies and objectives specified in section 2501 of this
title’’.
(b) SECTION 2371 PROJECTS.—Section 2371(a) of
such title is amended by inserting before the period in the
first sentence the following: ‘‘for the purpose of advancing
the defense policies and objectives specified in section 2501
of this title’’.
TITLE III—OPERATION AND
MAINTENANCE
Subtitle A—Authorization of
Appropriations
SEC. 301. OPERATION AND MAINTENANCE FUNDING.
Funds are hereby authorized to be appropriated for fis-
cal year 1996 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for ex-
penses, not otherwise provided for, for operation and main-
tenance in amounts as follows:
(1) For the Army, $19,339,936,000.
(2) For the Navy, $21,677,510,000.
(3) For the Marine Corps, $2,603,622,000.
(4) For the Air Force, $18,984,162,000.
(5) For Defense-wide activities, $10,680,371,000.
(6) For the Army Reserve, $1,139,591,000.
(7) For the Naval Reserve, $838,042,000.
(8) For the Marine Corps Reserve, $91,783,000.
(9) For the Air Force Reserve, $1,507,447,000.
(10) 
For 
the 
Army 
National 
Guard,
$2,394,108,000.
(11) 
For 
the 
Air 
National 
Guard,
$2,734,221,000.
(12) 
For 
the 
Defense 
Inspector 
General,
$177,226,000.
(13) For the United States Court of Appeals for
the Armed Forces, $6,521,000.
(14) For Environmental Restoration, Defense,
$1,422,200,000.
(15) For Drug Interdiction and Counter-drug
Activities, Defense-wide, $680,432,000.
(16) 
For 
Medical 
Programs, 
Defense,
$9,876,525,000.
(17) For Summer Olympics, $15,000,000.
(18) For Cooperative Threat Reduction pro-
grams, $200,000,000.
(19) For Overseas Humanitarian, Disaster, and
Civic Aid programs, $50,000,000.
SEC. 302. WORKING CAPITAL FUNDS.
Funds are hereby authorized to be appropriated for fis-
cal year 1996 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds
in amounts as follows:
(1) For the Defense Business Operations Fund,
$878,700,000.
(2) For the National Defense Sealift Fund,
$1,574,220,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fiscal
year 1996 from the Armed Forces Retirement Home Trust
Fund the sum of $59,120,000 for the operation of the Armed
Forces Retirement Home, including the United States Sol-
diers’ and Airmen’s Home and the Naval Home.
Subtitle B—Defense Business
Operations Fund
SEC. 311. CODIFICATION OF DEFENSE BUSINESS OPER-
ATIONS FUND.
(a) MANAGEMENT OF WORKING-CAPITAL FUNDS.—(1)
Chapter 131 of title 10, United States Code, is amended
by inserting after section 2215 the following new section:
‘‘§ 2216. Defense Business Operations Fund
‘‘(a) MANAGEMENT OF WORKING-CAPITAL FUNDS AND
CERTAIN ACTIVITIES.—The Secretary of Defense may man-
age the performance of the working-capital funds and in-
dustrial, commercial, and support type activities described
in subsection (b) through the fund known as the Defense
Business Operations Fund, which is established on the books
of the Treasury. Except for the funds and activities specified
in subsection (b), no other functions, activities, funds, or
accounts of the Department of Defense may be managed
through the Fund.
‘‘(b) FUNDS AND ACTIVITIES INCLUDED.—The funds
and activities referred to in subsection (a) are the following:
‘‘(1) Working-capital funds established under sec-
tion 2208 of this title and in existence on December
5, 1991.
‘‘(2) Those activities that, on December 5, 1991,
were funded through the use of a working-capital fund
established under that section.
‘‘(3) The Defense Finance and Accounting Serv-
ice.
‘‘(4) The Defense Industrial Plant Equipment
Center.
‘‘(5) The Defense Commissary Agency.
‘‘(6) The Defense Technical Information Service.
‘‘(7) The Defense Reutilization and Marketing
Service.
‘‘(c) SEPARATE ACCOUNTING, REPORTING, AND AUDIT-
ING OF FUNDS AND ACTIVITIES.—(1) The Secretary of De-
fense shall provide in accordance with this subsection for
separate accounting, reporting, and auditing of funds and
activities managed through the Fund.
‘‘(2) The Secretary shall maintain the separate iden-
tity of each fund and activity managed through the Fund
that (before the establishment of the Fund) was managed
as a separate fund or activity.
‘‘(3) The Secretary shall maintain separate records for
each function for which payment is made through the Fund
and which (before the establishment of the Fund) was paid
directly through appropriations, including the separate
identity of the appropriation account used to pay for the
performance of the function.
‘‘(d) CHARGES FOR GOODS AND SERVICES PROVIDED
THROUGH THE FUND.—(1) Charges for goods and services
provided through the Fund shall include the following
amounts:
‘‘(A) Amounts necessary to recover the full costs
of—
‘‘(i) the development, implementation, oper-
ation, and maintenance of systems supporting
the wholesale supply and maintenance activities
of the Department of Defense; and
‘‘(ii) the use of members of the armed forces
in the provision of the goods and services, com-
puted by calculating, to the maximum extent
practicable, such costs as if employees of the De-
partment of Defense were used in the provision
of the goods and services.
‘‘(B) Amounts for depreciation of capital assets,
set in accordance with generally accepted accounting
principles.
‘‘(C) Amounts necessary to recover the full cost
of the operation of the Defense Finance Accounting
Service.
‘‘(2) Charges for goods and services provided through
the Fund may not include the following amounts:
‘‘(A) Amounts necessary to recover the costs of a
military construction project (as defined in section
2801(b) of this title), other than a minor construction
project financed by the Fund pursuant to section
2805(c)(1) of this title.
‘‘(B) Amounts necessary to cover costs incurred
in connection with the closure or realignment of a
military installation.
‘‘(e) CAPITAL ASSET SUBACCOUNT.—(1) Amounts
charged for depreciation of capital assets pursuant to sub-
section (d)(1)(B) shall be credited to a separate capital asset
subaccount established within the Fund.
‘‘(2) The Secretary of Defense may award contracts for
capital assets of the Fund in advance of the availability
of funds in the subaccount.
‘‘(f) PROCEDURES FOR ACCUMULATION OF FUNDS.—
The Secretary of Defense shall establish billing procedures
to ensure that the balance in the Fund does not exceed the
amount necessary to provide for the working capital re-
quirements of the Fund, as determined by the Secretary.
‘‘(g) PURCHASE FROM OTHER SOURCES.—The Sec-
retary of Defense or the Secretary of a military department
may purchase goods and services that are available for pur-
chase from the Fund from a source other than the Fund
if the Secretary determines that such source offers a more
competitive rate for the goods and services than the Fund
offers.
‘‘(h) ANNUAL REPORTS AND BUDGET.—The Secretary
of Defense shall annually submit to Congress, at the same
time that the President submits the budget under section
1105 of title 31, the following:
‘‘(1) A detailed report that contains a statement
of all receipts and disbursements of the Fund (includ-
ing such a statement for each subaccount of the Fund)
for the year for which the report is submitted.
‘‘(2) A detailed proposed budget for the operation
of the Fund for the fiscal year for which the budget
is submitted.
‘‘(3) A comparison of the amounts actually ex-
pended for the operation of the Fund for the previous
fiscal year with the amount proposed for the oper-
ation of the Fund for that fiscal year in the Presi-
dent’s budget.
‘‘(4) A report on the capital asset subaccount of
the Fund that contains the following information:
‘‘(A) The opening balance of the subaccount
as of the beginning of the fiscal year in which
the report is submitted.
‘‘(B) The estimated amounts to be credited
to the subaccount in the fiscal year in which the
report is submitted.
‘‘(C) The estimated amounts of outlays to be
paid out of the subaccount in the fiscal year in
which the report is submitted.
‘‘(D) The estimated balance of the sub-
account at the end of the fiscal year in which the
report is submitted.
‘‘(E) A statement of how much of the esti-
mated balance at the end of the fiscal year in
which the report is submitted will be needed to
pay outlays in the immediately following fiscal
year that are in excess of the amount to be cred-
ited to the subaccount in the immediately follow-
ing fiscal year.
‘‘(i) DEFINITIONS.—In this section:
‘‘(1) The term ‘capital assets’ means the follow-
ing capital assets that have a development or acquisi-
tion cost of not less than $15,000:
‘‘(A) Minor construction projects financed
by the Fund pursuant to section 2805(c)(1) of
this title.
‘‘(B) Automatic data processing equipment,
software, other equipment, and other capital im-
provements.
‘‘(2) The term ‘Fund’ means the Defense Busi-
ness Operations Fund.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
2215 the following new item:
‘‘2216. Defense Business Operations Fund.’’.
(b) CONFORMING REPEALS.—The following provisions
of law are hereby repealed:
(1) Subsections (b), (c), (d), and (e) of section
311 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103–337; 10 U.S.C.
2208 note).
(2) Subsections (a) and (b) of section 333 of the
National Defense Authorization Act for Fiscal Year
1994 (Public Law 103–160; 10 U.S.C. 2208 note).
(3) Section 342 of the National Defense Author-
ization Act for Fiscal Year 1993 (Public Law 102–
484; 10 U.S.C. 2208 note).
(4) Section 316 of the National Defense Author-
ization Act for Fiscal Years 1992 and 1993 (Public
Law 102–190; 10 U.S.C. 2208 note).
(5) Section 8121 of the Department of Defense
Appropriations Act, 1992 (Public Law 102–172; 10
U.S.C. 2208 note).
SEC. 312. RETENTION OF CENTRALIZED MANAGEMENT OF
DEFENSE BUSINESS OPERATIONS FUND AND
PROHIBITION ON FURTHER EXPANSION OF
FUND.
(a) CENTRALIZED MANAGEMENT.—Subsection (a) of
section 2216 of title 10, United States Code, as added by
section 311(a), is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of
Defense’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) Management of the Fund, including management
of cash balances in the Fund, shall be exercised in the Office
of the Secretary of Defense under the immediate authority
of the Under Secretary of Defense (Comptroller). The Fund
shall be treated as a single account for purposes of sub-
chapter III of chapter 13 and subchapter II of chapter 15
of title 31.’’.
(b) EXPANSION OF FUND.—Such subsection is further
amended by adding at the end of paragraph (1) the follow-
ing new sentence: ‘‘The Secretary may not convert to man-
agement through the Fund any function, activity, fund, or
account of the Department of Defense that is not managed
through the Fund as of the date of the enactment of the
National Defense Authorization Act for Fiscal Year 1996.’’.
SEC. 313. CHARGES FOR GOODS AND SERVICES PROVIDED
THROUGH DEFENSE BUSINESS OPERATIONS
FUND AND TERMINATION OF ADVANCE BILL-
ING PRACTICES.
(a) CHARGES INCLUDED.—Paragraph (1)(A)(ii) of
subsection (d) of section 2216 of title 10, United States
Code, as added by section 311(a), is amended by striking
out ‘‘as if employees of the Department of Defense were used
in the provision of the goods and services’’ and inserting
in lieu thereof ‘‘using the pay and allowances of the mem-
bers’’.
(b) CHARGES EXCLUDED.—Paragraph (2) of such sub-
section is amended by adding at the end the following new
subparagraph:
‘‘(C) Amounts necessary to recover the costs of
functions designated by the Secretary of Defense as
mission critical, such as ammunition handling safety,
and amounts for ancillary tasks not directly related
to the mission of the function or activity managed
through the Fund.’’.
(c) TERMINATION OF ADVANCE BILLING PRACTICES.—
Such subsection is further amended by adding at the end
the following new paragraph:
‘‘(3) After September 30, 1996, functions and activities
managed through the Fund may not use advance billing
in the provision of goods and services to customers.’’.
SEC. 314. ANNUAL PROPOSED BUDGET FOR OPERATION OF
DEFENSE BUSINESS OPERATIONS FUND.
Subsection (h)(2) of section 2216 of title 10, United
States Code, as added by section 311(a), is amended by add-
ing at the end the following new sentence: ‘‘The proposed
budget shall include the amount necessary to cover the oper-
ating losses, if any, of the Fund for the previous fiscal
year.’’.
SEC. 315. REDUCTION IN REQUESTS FOR TRANSPORTATION
FUNDED THROUGH DEFENSE BUSINESS OP-
ERATIONS FUND.
(a) REDUCTION.—The Secretary of Defense shall direct
the heads of Defense-wide activities and the Secretaries of
the military departments to reduce requests during fiscal
year 1996 for purchasing transportation from the transpor-
tation accounts of the Defense Business Operations Fund
by $70,000,000 below the level of such requests during fiscal
year 1995. The rates charged for transportation funded
through the Defense Business Operations Fund shall be re-
duced to reflect the effect of the reduced requests on overhead
costs.
(b) REPORT REQUIRED.—Not later than March 1,
1996, the Secretary of Defense shall submit to Congress a
report regarding—
(1) the effect on the Defense transportation orga-
nization of implementing certain consolidation pro-
posals, such as the elimination of duplication in the
component command structure; and
(2) the extent that transportation overhead, the
cost of which is passed on to customers, can be signifi-
cantly reduced without adversely affecting mobiliza-
tion requirements.
Subtitle C—Environmental
Provisions
SEC. 321. CLARIFICATION OF SERVICES AND PROPERTY
THAT MAY BE EXCHANGED TO BENEFIT THE
HISTORICAL COLLECTION OF THE ARMED
FORCES.
Section 2572(b) of title 10, United States Code, is
amended in paragraph (1) by striking out ‘‘not needed by
the armed forces’’ and all that follows through the end of
the paragraph and inserting in lieu thereof the following:
‘‘not needed by the armed forces for any of the following
items or services if they directly benefit the historical collec-
tion of the armed forces:
‘‘(A) Similar items held by any individual, or-
ganization, institution, agency, or nation.
‘‘(B) Conservation supplies, equipment, facilities,
or systems.
‘‘(C) Search, salvage, or transportation services.
‘‘(D) Restoration, conservation, or preservation
services.
‘‘(E) Educational programs.’’.
SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DE-
FENSE ENVIRONMENTAL RESTORATION AC-
COUNT.
Section 2703(e) of title 10, United States Code is
amended to read as follows:
‘‘(e) AMOUNTS RECOVERED.—The following amounts
shall be credited to the transfer account:
‘‘(1) Amounts recovered under section 107 of
CERCLA for response actions of the Secretary.
‘‘(2) Any other amounts recovered by the Sec-
retary or the Secretary of the military department
concerned from a contractor, insurer, surety, or other
person to reimburse the Department of Defense for
any expenditure for environmental response activi-
ties.’’.
SEC. 323. REPEAL OF CERTAIN ENVIRONMENTAL EDU-
CATION PROGRAMS.
Sections 1333 and 1334 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law 103–160;
10 U.S.C. 2701 note) are repealed.
SEC. 324. REPEAL OF LIMITATION ON OBLIGATION OF
AMOUNTS TRANSFERRED FROM ENVIRON-
MENTAL RESTORATION TRANSFER ACCOUNT.
(a) REPEAL OF LIMITATION.—Section 2703 of title 10,
United States Code, is further amended—
(1) by striking out subsection (c); and
(2) by redesignating subsection (d), subsection
(e) (as amended by section 322), and subsection (f) as
subsections (c), (d), and (e), respectively.
(b) EFFECT ON CONTRACTS.—Nothing in the amend-
ment made by subsection (a) shall be considered to negate
or invalidate any legal protection or legal defense available
to the Department of Defense under ‘‘force majeure’’ clauses
in environmental restoration contracts or agreements exist-
ing on the date of the enactment of this Act.
SEC. 325. ELIMINATION OF AUTHORITY TO TRANSFER
AMOUNTS FOR TOXICOLOGICAL PROFILES.
Section 2704 of title 10, United States Code, is amend-
ed in subsections (c) and (d)(3)—
(1) by striking out ‘‘, such sums from amounts
appropriated to the Department of Defense,’’; and
(2) by striking out ‘‘, including the manner for
transferring funds and personnel and for coordina-
tion of activities under this section’’.
SEC. 326. SENSE OF CONGRESS ON USE OF DEFENSE ENVI-
RONMENTAL RESTORATION ACCOUNT.
It is the sense of Congress that the Secretary of Defense
should make every effort to limit, by the end of fiscal year
1997, spending for administration, support, studies, and
investigations associated with the Defense Environmental
Restoration Account to 20 percent of the total funding for
that account.
Subtitle D—Civilian Employees and
Nonappropriated Fund Instru-
mentality Employees
SEC. 331. MANAGEMENT OF DEPARTMENT OF DEFENSE CI-
VILIAN PERSONNEL.
Section 129 of title 10, United States Code, is amend-
ed—
(1) in subsection (a)—
(A) by inserting ‘‘(including any limitation
on full-time equivalent positions)’’ before the pe-
riod at the end of the second sentence; and
(B) by adding at the end the following new
sentence: ‘‘The Secretary shall not be required to
make a reduction in the number of full-time
equivalent positions in the Department of De-
fense unless such reduction is necessary due to a
reduction in funds available to the Department
or is required under a law that is enacted after
the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1996 and that
refers specifically to this subsection.’’; and
(2) by adding at the end the following new sub-
section:
‘‘(d) With respect to each budget activity within an
appropriation for any fiscal year for operations and main-
tenance, the Secretary of Defense shall ensure that there are
employed during that fiscal year employees in the number,
and of the type and with the skill mix, that are necessary
to carry out the functions within that budget activity for
which funds are provided for that fiscal year.’’.
SEC. 332. MANAGEMENT OF DEPOT EMPLOYEES.
(a) DEPOT EMPLOYEES.—Chapter 146 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2472. Management of depot employees
‘‘(a) 
PROHIBITION
ON
MANAGEMENT
BY
END
STRENGTH.—The civilian employees of the Department of
Defense involved in the depot-level maintenance and repair
of materiel may not be managed on the basis of any end-
strength constraint or limitation on the number of such em-
ployees who may be employed on the last day of a fiscal
year. Such employees shall be managed solely on the basis
of the available workload and the funds made available for
such depot-level maintenance and repair.
‘‘(b) ANNUAL REPORT.—Not later than 60 days after
the beginning of each fiscal year, the Secretary of Defense
shall submit to the Committee on Armed Services of the
Senate and the Committee on National Security of the
House of Representatives a report on the number of employ-
ees employed and expected to be employed by the Depart-
ment of Defense during that fiscal year to perform depot-
level maintenance and repair of materiel. The report shall
indicate whether that number is sufficient to perform the
depot-level maintenance and repair functions for which
funds have been appropriated for that fiscal year for per-
formance by Department of Defense employees.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 146 of such title is amended by
adding at the end the following new item:
‘‘2472. Management of depot employees.’’.
SEC. 333. CONVERSION TO PERFORMANCE BY CIVILIAN EM-
PLOYEES OF ACTIVE-DUTY POSITIONS.
(a) CONVERSION TO CIVILIAN PERFORMANCE.—Dur-
ing fiscal year 1996, the Secretary of Defense shall change
to performance by employees of the Department of Defense
the performance of not less than 10,000 positions in the De-
partment of Defense that, as of September 30, 1995, were
designated to be performed by members of the Armed Forces
on active duty.
(b) IMPLEMENTATION PLAN.—Not later than March
31, 1996, the Secretary of Defense shall submit to the Com-
mittee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives a plan
for the implementation of subsection (a).
SEC. 334. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF
NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES.
(a) CLARIFICATION
OF
DEFINITION
OF
NONAP-
PROPRIATED FUND INSTRUMENTALITY EMPLOYEE.—Sub-
section (a)(1) of section 1587 of title 10, United States Code,
is amended by adding at the end the following new sentence:
‘‘Such term includes a civilian employee of a support orga-
nization within the Department of Defense or a military
department, such as the Defense Finance and Accounting
Service, who is paid from nonappropriated funds on ac-
count of the nature of the employee’s duties.’’.
(b) DIRECT REPORTING OF VIOLATIONS.—Subsection
(e) of such section is amended in the second sentence by
inserting before the period the following: ‘‘and to permit
the direct reporting of alleged violations of subsection (b)
to the Inspector General of the Department of Defense’’.
(c) TECHNICAL AMENDMENT.—Subsection (a)(1) of
such section is further amended by striking out ‘‘Navy Re-
sale and Services Support Office’’ and inserting in lieu
thereof ‘‘Navy Exchange Service Command’’.
(d) CLERICAL AMENDMENTS.—(1) The heading of such
section is amended to read as follows:
‘‘§ 1587. Employees of nonappropriated fund instru-
mentalities: personnel actions’’.
(2) The item relating to section 1587 in the table of
sections at the beginning of chapter 81 of such title is
amended to read as follows:
‘‘1587. Employees of nonappropriated fund instrumentalities: personnel actions.’’.
SEC. 335. TERMINATION OF OVERSEAS LIVING QUARTERS
ALLOWANCES FOR NONAPPROPRIATED FUND
INSTRUMENTALITY EMPLOYEES.
(a) PROHIBITION OF ALLOWANCE FOR NEW EMPLOY-
EES.—A nonappropriated fund instrumentality employee
hired after the date of the enactment of this Act may not
be paid an overseas living quarters allowance from
nonappropriated funds of the nonappropriated fund instru-
mentality that employs the employee.
(b) TERMINATION OF ALLOWANCE FOR CURRENT EM-
PLOYEES.—A nonappropriated fund instrumentality em-
ployee who is eligible for an overseas living quarters allow-
ance on the date of the enactment of this Act shall cease
to be eligible for such an allowance after the earlier of—
(1) September 30, 1998; or
(2) the date on which the employee otherwise
ceases to be eligible for such an allowance.
(c) NONAPPROPRIATED FUND INSTRUMENTALITY EM-
PLOYEE DEFINED.—For purposes of this section, the term
‘‘nonappropriated fund instrumentality employee’’ has the
meaning given such term in section 1587(a)(1) of title 10,
United States Code.
SEC. 336. OVERTIME EXEMPTION FOR NONAPPROPRIATED
FUND EMPLOYEES.
Section 6121(2) of title 5, United States Code, is
amended to read as follows:
‘‘(2) ‘employee’ has the meaning given it by sec-
tion 2105(a) and also includes those paid from
nonappropriated funds of the Army and Air Force
Exchange Service, Navy Ship’s Stores Ashore, Navy
exchanges, Marine Corps exchanges, Coast Guard ex-
changes, and other instrumentalities of the United
States under the jurisdiction of the armed forces con-
ducted for the comfort, pleasure, contentment, and
mental and physical improvement of personnel of the
armed forces;’’.
SEC. 337. CONTINUED HEALTH INSURANCE COVERAGE.
Section 8905a(d)(4) of title 5, United States Code, is
amended—
(1) in subparagraph (A), by inserting ‘‘, or a
voluntary separation from a surplus position,’’ after
‘‘an involuntary separation from a position’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) For the purpose of this paragraph, ‘surplus posi-
tion’ means a position which is identified in pre-reduction
in force planning as no longer required, and which is ex-
pected to be eliminated under formal reduction-in-force pro-
cedures.’’.
SEC. 338. CREDITABILITY OF CERTAIN NAFI SERVICE
UNDER THE FEDERAL EMPLOYEES’ RETIRE-
MENT SYSTEM.
(a) IN GENERAL.—Subject to subsections (b) and (c),
upon application to the Office of Personnel Management,
any individual who, on the date of making such applica-
tion, is an employee within the Department of Defense or
the legislative branch of the Government shall be allowed
credit under chapter 84 of title 5, United States Code (for
purposes of benefits payable out of the Fund) for any service
if—
(1) such service was performed by such individ-
ual as an employee of a nonappropriated fund instru-
mentality of the Department of Defense or the Coast
Guard, described in section 2105(c) of such title; and
(2) such individual has served continuously,
since moving (after December 31, 1986, and without
a break in service of more than 3 days) from a
nonappropriated fund instrumentality referred to in
paragraph (1), in—
(A) the Department of Defense; or
(B) the legislative branch of the Govern-
ment.
(b) CONDITIONS.—An individual may not be allowed
credit for service under this section unless—
(1) an application is filed before the deadline
under subsection (c);
(2) such individual has been subject to chapter
84 of title 5, United States Code, since moving in the
manner described in subsection (a)(2); and
(3) such individual deposits to the credit of the
Fund an amount equal to 1.3 percent of the basic pay
paid to such individual for such service, with interest
(computed in accordance with paragraphs (2) and (3)
of section 8334(e) of title 5, United States Code).
(c) DEADLINE.—An application under this section
may not be filed after—
(1) the end of the 6-month period beginning on
the date of the enactment of this Act; or
(2) if earlier, the date on which a written deter-
mination is made by the Office of Personnel Manage-
ment that the actuarial present value of all benefits
payable as a result of the enactment of this section
has reached $50,000,000.
(d) REGULATIONS.—The Office of Personnel Manage-
ment shall prescribe any regulations necessary to carry out
this section.
(e) DEFINITION.—For purposes of this section, the
term ‘‘Fund’’ means the Civil Service Retirement and Dis-
ability Fund under section 8348 of title 5, United States
Code.
Subtitle 
E—Commissaries 
and
Nonappropriated Fund Instru-
mentalities
SEC. 341. OPERATION OF COMMISSARY STORE SYSTEM.
(a) COOPERATION WITH OTHER ENTITIES.—Section
2482 of title 10, United States Code, is amended—
(1) in the section heading, by striking out ‘‘pri-
vate’’;
(2) by inserting ‘‘(a) PRIVATE OPERATION.—’’
before ‘‘Private persons’’; and
(3) by adding at the end the following new sub-
section:
‘‘(b) CONTRACTS WITH OTHER AGENCIES AND IN-
STRUMENTALITIES.—(1) The Defense Commissary Agency,
and other agencies of the Department of Defense that sup-
port the operation of the commissary store system, may
enter into contracts or other agreements with other appro-
priated fund or nonappropriated fund instrumentalities of
the Department of Defense or other departments or agencies
of the United States to facilitate efficiency in the manage-
ment and operation of the commissary store system.
‘‘(2) 
A 
commissary 
store 
operated 
by 
a
nonappropriated fund instrumentality shall be operated in
accordance with section 2484 of this title. Subject to such
section, the Secretary of Defense may authorize a transfer
of goods, supplies, and facilities of, and funds appropriated
for, the Defense Commissary Agency to a nonappropriated
fund instrumentality operating a commissary store.’’.
(b) AUTHORIZATION FOR DISTRIBUTORS TO SERVE AS
VENDOR AGENTS.—Such section is further amended by
adding after subsection (b), as added by subsection (a), the
following new subsection:
‘‘(c) PAYMENTS TO VENDOR AGENTS.—If a distributor
for a vendor of resale products under contract to the Defense
Commissary Agency is designated as an agent by and for
the vendor, the distributor may invoice the agency and ac-
cept payments from the agency under the vendor’s contract.
A distributor designated as a agent for purposes of this sub-
section may request payment for more than one product of
the vendor on the same invoice. All payments made by the
agency to a distributor designated by a vendor as the ven-
dor’s agent shall be considered payments under the vendor’s
contract, and the payments shall fulfill the payment obliga-
tions of the United States in the same manner as if the
payments had been made directly to the vendor.’’.
(c) CLERICAL AMENDMENT.—The item relating to such
section in the table of sections at the beginning of chapter
147 of such title is amended to read as follows:
‘‘2482. Commissary stores: operation.’’.
SEC. 342. PRICING POLICIES FOR COMMISSARY STORE MER-
CHANDISE.
Section 2486(d)(1) of title 10, United States Code, is
amended—
(1) by striking out ‘‘each item’’ and inserting in
lieu thereof ‘‘items’’; and
(2) by striking out ‘‘actual product cost of the
item’’ and inserting in lieu thereof ‘‘total average
product cost of merchandise sold’’.
SEC. 343. LIMITED RELEASE OF COMMISSARY STORES
SALES INFORMATION TO MANUFACTURERS,
DISTRIBUTORS, AND OTHER VENDORS DOING
BUSINESS 
WITH 
DEFENSE 
COMMISSARY
AGENCY.
Section 2487(b) of title 10, United States Code, is
amended in the second sentence by inserting before the pe-
riod the following: ‘‘unless the agreement is between the De-
fense Commissary Agency and a manufacturer, distributor,
or other vendor doing business with the Agency and is re-
stricted to information directly related to merchandise pro-
vided by that manufacturer, distributor, or vendor’’.
SEC. 344. ECONOMICAL DISTRIBUTION OF DISTILLED SPIR-
ITS BY NONAPPROPRIATED FUND INSTRU-
MENTALITIES.
(a) ECONOMICAL DISTRIBUTION.—Subsection (a)(1) of
section 2488 of title 10, United States Code, is amended
by inserting after ‘‘most competitive source’’ the following:
‘‘and distributed in the most economical manner’’.
(b) DETERMINATION
OF MOST ECONOMICAL DIS-
TRIBUTION METHOD.—Such section is further amended—
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following
new subsection:
‘‘(c)(1) In the case of covered alcoholic beverage pur-
chases of distilled spirits, to determine whether a
nonappropriated fund instrumentality of the Department
of Defense represents the most economical method of dis-
tribution to package stores, the Secretary of Defense shall
consider all components of the distribution costs incurred
by the nonappropriated fund instrumentality, such as over-
head costs (including management, logistics, administra-
tion, depreciation, and utilities), the costs of carrying in-
ventory, and handling and distribution costs.
‘‘(2) If the use of a private distributor would subject
covered alcoholic beverage purchases of distilled spirits to
direct or indirect State taxation, a nonappropriated fund
instrumentality shall be considered to be the most economi-
cal method of distribution regardless the results of the deter-
mination under paragraph (1).
‘‘(3) The Secretary shall use the agencies performing
audit functions on behalf of the armed forces and the In-
spector General of the Department of Defense to make deter-
minations under this subsection.’’.
SEC. 345. TRANSPORTATION BY COMMISSARIES AND EX-
CHANGES TO OVERSEAS LOCATIONS.
(a) IN GENERAL.—Chapter 157 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 2643. Commissary and exchange services: transpor-
tation overseas
‘‘The Secretary of Defense shall give the officials re-
sponsible for operation of commissaries and military ex-
changes the authority to negotiate directly with private car-
riers for the most cost-effective transportation of com-
missary and exchange supplies by sea without relying on
the Military Sealift Command or the Military Traffic Man-
agement Command. Section 2631 of this title, regarding the
preference for vessels of the United States or belonging to
the United States in the transportation of supplies by sea,
shall apply to the negotiation of transportation contracts
under the authority of this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘2643. Commissary and exchange services: transportation overseas.’’.
SEC. 346. DEMONSTRATION PROGRAM FOR UNIFORM FUND-
ING OF MORALE, WELFARE, AND RECREATION
ACTIVITIES AT CERTAIN MILITARY INSTALLA-
TIONS.
(a) DEMONSTRATION PROGRAM REQUIRED.—The Sec-
retary of Defense shall conduct a demonstration program
at six military installations, under which funds appro-
priated for the support of morale, welfare, and recreation
programs 
at 
the 
installations 
are 
combined 
with
nonappropriated funds available for such programs and
treated as nonappropriated funds. Under this demonstra-
tion program, the combined appropriated funds shall be ex-
pended pursuant to the laws and regulations that apply
to nonappropriated funds.
(b) COVERED MILITARY INSTALLATIONS.—The Sec-
retary of Defense shall select two military installations from
each military department to participate in the demonstra-
tion program.
(c) EFFECT ON CIVILIAN EMPLOYEES.—Civilian em-
ployees of the Department of Defense who are normally paid
using the appropriated funds that are combined under sub-
section (a) shall be considered to be nonappropriated fund
instrumentality employees unless they continue to be paid
using other appropriated funds. Any converted employee
shall automatically revert to the employee’s former status
at the end of the program or upon any action by manage-
ment to terminate the employee, whichever occurs first. Any
converted employee shall retain retirement and medical
benefits under the employee’s former status.
(d) PERIOD
OF DEMONSTRATION PROGRAM.—The
demonstration program shall terminate at the end of the
first full fiscal year beginning on or after the date of the
enactment of this Act.
(e) REPORT.—Not later than 90 days after the end of
the demonstration program, the Secretary of Defense shall
submit to Congress a report describing the results of the
demonstration program.
SEC. 347. CONTINUED OPERATION OF BASE EXCHANGE
MART AT FORT WORTH NAVAL AIR STATION
AND 
AUTHORITY 
TO 
EXPAND 
BASE 
EX-
CHANGE MART PROGRAM.
(a) CONTINUED OPERATION
OF BASE EXCHANGE
MART.—Section 375 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat.
2736) is amended by striking out ‘‘, until December 31,
1995,’’.
(b) EXPANSION
OF BASE EXCHANGE MART PRO-
GRAM.—(1) Subject to paragraph (2), the Secretary of De-
fense may provide for the operation by a nonappropriated
fund instrumentality of not more than ten combined ex-
change and commissary stores, in which groceries are sold
at five percent above cost and other items are sold at the
typical military exchange markup.
(2) The Secretary may select a military installation
as the location for a combined exchange and commissary
store only if—
(A) the installation has been or is selected for
closure or realignment; or
(B) the continued operation of a separate mili-
tary exchange and commissary store at the installa-
tion is not economically feasible.
(3) If a nonappropriated fund instrumentality incurs
a loss in operating a commissary store as a result of the
pricing requirements specified in paragraph (1), the Sec-
retary may authorize a transfer of funds appropriated for
the Defense Commissary Agency to the nonappropriated
fund instrumentality to offset the loss. However, the total
amount of appropriated funds transferred during a fiscal
year to support the operation of a commissary store may
not exceed an amount equal to 25 percent of the appro-
priated funds provided during the last full year of operation
of the commissary store by the Defense Commissary Agency.
(4) The combined military exchange and commissary
stores authorized under this subsection shall include the
combined military exchange and commissary store operated
at the Naval Air Station Fort Worth, Joint Reserve Center,
Carswell Field, Texas.
(5) 
For 
purposes 
of 
this 
section, 
the 
term
‘‘nonappropriated fund instrumentality’’ means the Army
and Air Force Exchange Service, Navy Exchange Service
Command, Marine Corps exchanges, or any other instru-
mentality of the United States under the jurisdiction of the
Armed Forces which is conducted for the comfort, pleasure,
contentment, or physical or mental improvement of mem-
bers of the Armed Forces.
SEC. 348. UNIFORM DEFERRED PAYMENTS PROGRAM FOR
MILITARY EXCHANGES.
(a) USE OF COMMERCIAL BANKING INSTITUTIONS.—
As soon as possible after the date of the enactment of this
Act, the Secretary of Defense shall endeavor to enter into
an agreement with a commercial banking institution under
which the commercial banking institution will fund and op-
erate the deferred payment programs of the Army and Air
Force Exchange Service and Navy Exchange Service Com-
mand. To ease the transition to commercial operation, the
Secretary may initially limit the agreement to one of the
two military exchange services.
(b) UNIFORM EXCHANGE CREDIT PROGRAM.—Not
later than January 1, 1997, the Secretary shall establish
a uniform deferred payment program for use in all military
exchanges to replace the separate deferred payment pro-
grams currently operated by the Army and Air Force Ex-
change Service and Navy Exchange Service Command.
(c) REPORT.—Not later than December 31, 1995, the
Secretary of Defense shall submit to Congress a report de-
scribing the implementation of this section.
SEC. 349. AVAILABILITY OF FUNDS TO OFFSET EXPENSES
INCURRED BY ARMY AND AIR FORCE EX-
CHANGE SERVICE ON ACCOUNT OF TROOP
REDUCTIONS IN EUROPE.
Of funds authorized to be appropriated under section
301(5), not more than $70,000,000 shall be available to the
Secretary of Defense for transfer to the Army and Air Force
Exchange Service to offset expenses incurred by the Army
and Air Force Exchange Service on account of reductions
in the number of members of the United States Armed
Forces assigned to permanent duty ashore in Europe.
SEC. 350. STUDY REGARDING IMPROVING EFFICIENCIES IN
OPERATION OF MILITARY EXCHANGES AND
OTHER MORALE, WELFARE, AND RECREATION
ACTIVITIES AND COMMISSARY STORES.
(a) STUDY REQUIRED.—The Secretary of Defense shall
conduct a study regarding the manner in which greater effi-
ciencies can be achieved in the operation of—
(1) military exchanges;
(2) other instrumentalities of the United States
under the jurisdiction of the Armed Forces which are
conducted for the comfort, pleasure, contentment, or
physical or mental improvement of members of the
Armed Forces; and
(3) commissary stores.
(b) REPORT OF STUDY.—Not later than March 1,
1996, the Secretary of Defense shall submit to Congress a
report describing the results of the study and containing
such recommendations as the Secretary considers appro-
priate to implement efficiency-building options identified
in the study.
SEC. 351. EXTENSION OF DEADLINE FOR CONVERSION OF
NAVY SHIPS’ STORES TO OPERATION AS
NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES.
(a) EXTENSION.—Section 371(a) of the National De-
fense Authorization Act for Fiscal Year 1994 (Public Law
103–160; 10 U.S.C. 7604 note) is amended by striking out
‘‘December 31, 1995’’ and inserting in lieu thereof ‘‘Decem-
ber 31, 1996’’.
(b) INSPECTOR GENERAL REVIEW.—Not later than
April 1, 1996, the Inspector General of the Department of
Defense shall submit to Congress a report—
(1) evaluating the costs and benefits of convert-
ing the operation of all Navy ships’ stores to oper-
ation by the Navy Exchange Service Command, as re-
quired by section 371(a) of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law
103–160; 10 U.S.C. 7604 note); and
(2) reviewing the Navy Audit Agency report re-
garding such conversion prepared pursuant to section
374 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103–337; 108 Stat.
2736).
Subtitle F—Contracting Out
SEC. 357. PROCUREMENT OF ELECTRICITY FROM MOST EC-
ONOMICAL SOURCE.
(a) PROCUREMENT
OF ELECTRICITY.—(1) Chapter
147 of title 10, United States Code, is amended by inserting
after section 2483 the following new section:
‘‘§ 2483a. Procurement of electricity from most eco-
nomical source
‘‘The Secretary of Defense shall procure electricity for
use on military installations and by other activities and
functions of the Department of Defense from the most eco-
nomical source, as determined by the Secretary. The Sec-
retary shall make the determination required by this section
in the manner provided in section 2462 of this title.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
2483 the following new item:
‘‘2483a. Procurement of electricity from most economical source.’’.
(b) EFFECTIVE DATE; RULE OF CONSTRUCTION.—The
amendment made by subsection (a) shall take effect on
March 1, 1996, except that the amendment shall not be con-
strued to require the termination of any contract for the
purchase of electricity for the Department of Defense entered
into before that date.
SEC. 358. PROCUREMENT OF CERTAIN COMMODITIES FROM
MOST ECONOMICAL SOURCE.
(a) PROCUREMENT OF SUPPLIES.—In the case of sup-
plies for the Department of Defense procured through the
General Services Administration as of the date of the enact-
ment of this Act, the Secretary of Defense shall procure such
supplies from another source if the Secretary determines
that the source can provide the supplies at a lower cost.
The Secretary shall make the determinations required by
this section in the manner provided in section 2462 of title
10, United States Code.
(b) EFFECTIVE DATE; RULE OF CONSTRUCTION.—The
amendment made by subsection (a) shall take effect on
March 1, 1996, except that the amendment shall not be con-
strued to require the termination of any contract between
the Secretary of Defense and the General Services Adminis-
tration entered into before that date.
SEC. 359. INCREASE IN COMMERCIAL PROCUREMENT OF
PRINTING AND DUPLICATION SERVICES.
Notwithstanding any other provision of law, during
fiscal year 1996, the Defense Printing Service may use pri-
vate printing sources for up to 70 percent of its printing
and duplication services.
SEC. 360. DIRECT DELIVERY OF ASSORTED CONSUMABLE
INVENTORY ITEMS OF DEPARTMENT OF DE-
FENSE.
To reduce the expense and necessity of maintaining ex-
tensive warehouses for consumable inventory items of the
Department of Defense, the Secretary of Defense shall ar-
range for direct vendor delivery of food, clothing, medical
and pharmaceutical supplies, automotive, electrical, fuel,
and construction supplies, and other consumable inventory
items for military installations throughout the United
States. The Secretary shall complete implementation of this
direct vendor delivery system not later than September 30,
1996.
SEC. 361. OPERATIONS OF DEFENSE REUTILIZATION AND
MARKETING SERVICE.
The Secretary of Defense shall enter into a contract,
not later than July 1, 1996, for the performance by a com-
mercial entity of all of the operations of the unit of the
Defense 
Logistics 
Agency 
known 
as 
the 
Defense
Reutilization and Marketing Service.
SEC. 362. PRIVATE OPERATION OF PAYROLL FUNCTIONS OF
DEPARTMENT OF DEFENSE FOR PAYMENT OF
CIVILIAN EMPLOYEES.
(a) PLAN
ON CONTRACTING OUT.—Not later than
March 1, 1996, the Secretary of Defense shall submit to
Congress a plan regarding private operation of payroll
functions for civilian employees of the Department of De-
fense.
(b) IMPLEMENTATION.—Not later than October 1,
1996, the Secretary shall implement the plan developed
under subsection (a).
SEC. 
363. 
DEMONSTRATION 
PROGRAM 
TO 
IDENTIFY
UNDERDEDUCTIONS 
AND 
OVERPAYMENTS
MADE TO VENDORS.
(a) DEMONSTRATION PROGRAM REQUIRED.—The Sec-
retary of Defense shall conduct a demonstration program
at the Defense Personnel Support Center, Philadelphia,
Pennsylvania, to evaluate the feasibility of using private
contractors to audit accounting and procurement records
of the Department of Defense to identify moneys due the
United States because of underdeductions and overpay-
ments made to vendors. Pursuant to an agreement between
100
the Secretary and one or more private contractors selected
by the Secretary, the contractors shall perform an audit of
accounting and procurement records of the Department for
at least fiscal years 1993, 1994, and 1995 using commercial
sector data processing techniques, which would compare
purchase documents and agreements with vendor invoices
to discover discrepancies in allowances, pricing, discounts,
billback allowances, backhaul allowances, and freight rout-
ing instructions. The audit shall also attempt to identify
duplicate payments and unauthorized invoice charges.
(b) BONUS PAYMENT.—From amounts made available
to conduct the demonstration program, the Secretary may
pay the contractors a negotiated amount not to exceed 25
percent of all amounts recovered as a result of the audit.
(c) AVAILABILITY OF FUNDS.—From amounts author-
ized to be appropriated pursuant to section 301(5), not
more than $5,000,000 shall be available to cover the costs
of the demonstration program, including the cost of any
bonus payment under subsection (b).
SEC. 364. PILOT PROGRAM TO EVALUATE POTENTIAL FOR
PRIVATE OPERATION OF OVERSEAS DEPEND-
ENTS’ SCHOOLS.
(a) PILOT PROGRAM.—The Secretary of Defense may
conduct a pilot program to assess the feasibility of using
private contractors to operate schools of the defense depend-
101
ents’ education system established under section 1402(a) of
the Defense Dependents’ Education Act of 1978 (20 U.S.C.
921(a)).
(b) SELECTION OF SCHOOL FOR PROGRAM.—If the
Secretary of Defense conducts the pilot program, the Sec-
retary shall select one school of the defense dependents’ edu-
cation system for participation in the program. Under the
pilot program, the Secretary shall provide for the operation
of the school by an appropriate private contractor for not
less than one complete school year.
(c) REPORT.—Not later than 30 days after the end of
the first school year in which the pilot program is con-
ducted, the Secretary of Defense shall submit to Congress
a report on the results of the program. The report shall in-
clude the recommendation of the Secretary with respect to
the extent to which other schools of the defense dependents’
education system should be operated by private contractors.
SEC. 365. PILOT PROGRAM FOR EVALUATION OF IMPROVED
DEFENSE TRAVEL PROCESSING PROTOTYPES.
(a) PILOT PROGRAM REQUIRED; LOCATION.—(1) The
Secretary of Defense, acting through the Under Secretary
of Defense (Comptroller), shall conduct a pilot program re-
garding two prototype tests of commercial travel applica-
tions to determine the best approach for the Department
of Defense Travel System.
102
(2) The Secretary shall conduct the pilot program at
six military installations containing approximately equal
numbers of members of the Armed Forces. Two installations
shall be selected from each military department.
(b) DESCRIPTION OF PROTOTYPE TESTS.—The two re-
spective tests shall be as follows:
(1) In this test, three installations (one for each
military department), with the Department of Defense
acting as its own integrator, will implement the trav-
el processes proposed by the task force on travel man-
agement chartered by the Secretary of Defense in July
1994, and will offer specific business opportunities in
the services areas currently utilized, namely reserva-
tions and credit card technologies.
(2) In this test, three installations (one for each
military department), will contract out their entire
travel process, reserving only essential elements, such
as travel authorization, for performance by employees
of the Department of Defense. Particular attention
will be focused on the ability of the vendor to inte-
grate all processes into a responsive, reasonably
priced, uniform travel system.
(c) CONDUCT OF TESTS.—The two prototype tests shall
be conducted as follows:
103
(1) Each test must accommodate the guidelines
for travel management issued by the Under Secretary
of Defense (Comptroller).
(2) The tests must take no more than 60 days to
set up and be operational for one year.
(d) EVALUATION CRITERIA.—The Secretary of Defense
shall establish evaluation criteria that include, at a mini-
mum—
(1) aligning travel policy and cost estimates
with mission at the point of reservation;
(2) using fully integrated solutions envisioned by
the Department of Defense travel reengineering report
of January 1995;
(3) matching credit card data and reservation
data with cost estimate data;
(4) matching data with a trip pro forma plan
to eliminate the need for further approvals; and
(5) a responsive and flexible management infor-
mation system for managers at all levels to monitor
travel expenses throughout the year, budget accurately
for any future year, and assess cost and value rela-
tionship regarding temporary duty travel for each
mission.
104
(e) PLAN FOR PROGRAM.—Before conducting the pilot
program, the Secretary of Defense shall develop a plan for
the program that addresses the following:
(1) The purposes of the prototype test, including
the objective of reducing the total costs of managing
travel by at least one-half.
(2) The methodology, duration, and anticipated
costs, including an arrangement whereby the contrac-
tor would receive its agreed upon contract payment
plus an additional negotiated amount not to exceed
50 percent of the dollar savings achieved in excess of
the objective specified in paragraph (1).
(3) A specific citation to any provision or law,
rule, or regulation that, if not waived, would prohibit
the conduct of the program or any part of the pro-
gram.
(4) The evaluation mechanism required by sub-
section (d).
(5) A provision for implementing the most suc-
cessful prototype Department-wide, based upon final
assessment of results.
105
SEC. 366. PILOT PROGRAM FOR PRIVATE OPERATION OF
CONSOLIDATED INFORMATION TECHNOLOGY
FUNCTIONS OF DEPARTMENT OF DEFENSE.
(a) PILOT PROGRAM REQUIRED.—(1) The Secretary
of Defense shall enter into discussions with private sector
entities for the purpose of issuing a request for proposal
to establish a pilot program to test and evaluate the cost
savings and efficiencies of private operation of all informa-
tion technology services for the Department of Defense cur-
rently being consolidated in Defense MegaCenters. The nego-
tiations shall be conducted so that the request for proposal
may be issued within 60 days after the date of the enact-
ment of this Act.
(2) The minimum workload to be contracted out in
the pilot program shall be equivalent to the workload of at
least three Defense MegaCenters.
(b) ESTABLISHMENT AND DURATION.—The Secretary
of Defense shall implement private operations under the
pilot program within one year after the date of the enact-
ment of this Act. The pilot program shall operate for not
more than a three-year period after implementation.
(c) GOAL OF PROGRAM.—The goal of the pilot program
is to receive proposals from private sector entities that, if
implemented, would reduce operating costs to the Depart-
ment of Defense for information technology functions by at
106
least 35 percent in comparison to annual operating cost
as of the date of the enactment of this Act.
(d) PLAN OF PROGRAM.—Before conducting the pilot
program, the Secretary of Defense shall develop a plan for
the program that addresses the following:
(1) The purposes of the program.
(2) The methodology, duration, and anticipated
costs of the program, including the cost of an arrange-
ment whereby the private contractor would receive the
agreed upon contract payment plus an additional ne-
gotiated amount not to exceed 50 percent of the dollar
savings achieved in excess of the goal specified in sub-
section (c).
(3) A specific citation to any provisions of law,
rule, or regulation that, if not waived, would prohibit
the conduct of the program or any part of the pro-
gram.
(4) An evaluation mechanism for the program.
(5) A provision for expanding the program to all
information technology functions of the Department of
Defense, based upon final assessment of the results of
the program.
(e) SUSPENSION
OF FURTHER CONSOLIDATION.—
Until the completion of the pilot program and submission
of the final report required under subsection (f)(2), none
107
of the funds appropriated to the Department of Defense for
a fiscal year after fiscal year 1995 may be used to reduce
the number of data centers of the Department of Defense
to fewer than the 16 Defense MegaCenters identified as of
the date of the enactment of this Act.
(f) REPORTING REQUIREMENTS.—(1) Not later than
six months after commencing contracting out activities
under the pilot program, the Secretary of Defense shall sub-
mit to Congress an initial assessment report regarding the
implementation of the pilot program.
(2) The Secretary shall submit to Congress a final as-
sessment report, including a recommendation for expanding
the program as appropriate, not later than one year after
commencing contracting out activities under the pilot pro-
gram.
SEC. 367. REPORT ON EFFORTS TO CONTRACT OUT CER-
TAIN FUNCTIONS OF DEPARTMENT OF DE-
FENSE.
Not later than March 1, 1996, the Secretary of Defense
shall submit to Congress a report describing the advantages
and disadvantages of using contractor personnel, rather
than civilian employees of the Department of Defense, to
perform functions of the Department that are not essential
to the warfighting mission of the Armed Forces. The report
108
shall specify all legislative and regulatory impediments to
contracting those functions for private performance.
SEC. 368. PILOT PROGRAM FOR PRIVATE OPERATION OF
PAYROLL AND ACCOUNTING FUNCTIONS OF
NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES.
(a) PILOT PROGRAM REQUIRED; LOCATION.—(1) The
Secretary of Defense, acting through the Under Secretary
of Defense (Comptroller), shall enter into discussions with
private sector entities for the purpose of issuing a request
for proposal to establish a pilot program to test and evalu-
ate the cost savings and efficiencies of private operation of
accounting and payroll function of nonappropriated fund
instrumentalities of the Department of Defense. The nego-
tiations shall be conducted so that the request for proposal
may be issued within 60 days after the date of the enact-
ment of this Act.
(2) The pilot program shall consist of a major Depart-
ment of Defense Nonappropriated Fund Accounting and
Payroll function.
(b) GOAL OF PROGRAM.—The goal of the pilot pro-
gram is to receive proposals from private sector entities
that, if implemented, would reduce by at least 25 percent
the total costs to the Government for each pay event.
109
(c) PLAN OF PROGRAM.—Before conducting the pilot
program, the Secretary of Defense shall develop a plan for
the program that addresses the following:
(1) The purposes of the program.
(2) The methodology, duration, and anticipated
costs of the program, including the cost of an arrange-
ment whereby the private contractor would receive the
agreed upon contract payment plus an additional ne-
gotiated amount not to exceed 50 percent of the dollar
savings achieved in excess of the goal specified in sub-
section (b).
(3) A specific citation to any provisions of law,
rule, or regulation that, if not waived, would prohibit
the conduct of the program or any part of the pro-
gram.
(4) An evaluation mechanism for the program.
(5) A provision for expanding the program to all
accounting and payroll functions of nonappropriated
fund instrumentalities of the Department of Defense,
based upon final assessment of the results of the pro-
gram.
110
Subtitle G—Miscellaneous Reviews,
Studies, and Reports
SEC. 371. QUARTERLY READINESS REPORTS.
(a) IN GENERAL.—(1) Chapter 22 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 452. Quarterly readiness reports
‘‘(a) REQUIREMENT.—Not later than 30 days after the
end of each calendar-year quarter, the Secretary of Defense
shall submit to the Committee on Armed Services of the
Senate and the Committee on National Security of the
House of Representatives a report on military readiness.
The report for any quarter shall be based on assessments
that are provided during that quarter—
‘‘(1) to any council, committee, or other body of
the Department of Defense (A) that has responsibility
for readiness oversight, and (B) the membership of
which includes at least one civilian officer in the Of-
fice of the Secretary of Defense at the level of Assist-
ant Secretary of Defense or higher;
‘‘(2) by senior civilian and military officers of
the military departments and the commanders of the
unified and specified commands; and
111
‘‘(3) as part of any regularly established process
of periodic readiness reviews for the Department of
Defense as a whole.
‘‘(b) MATTERS TO BE INCLUDED.—Each such re-
port—
‘‘(1) shall specifically describe identified readi-
ness problems or deficiencies and planned remedial
actions; and
‘‘(2) shall include the key indicators and other
relevant data related to the identified problem area or
deficiency.
‘‘(c) CLASSIFICATION OF REPORTS.—Reports under
this section shall be submitted in unclassified form and
may, as the Secretary determines necessary, also be submit-
ted in classified form.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘452. Quarterly readiness reports.’’.
(b) EFFECTIVE DATE.—Section 452 of title 10, United
States Code, as added by subsection (a), shall take effect
with the calendar-year quarter during which this Act is en-
acted.
112
SEC. 372. REPORTS REQUIRED REGARDING EXPENDITURES
FOR EMERGENCY AND EXTRAORDINARY EX-
PENSES.
Subsection (c) of section 127 of title 10, United States
Code, is amended to read as follows:
‘‘(c)(1) In any fiscal year in which funds are expended
under the authority of this section, the Secretary of Defense
shall submit a report of such expenditures on a quarterly
basis to the committees specified in paragraph (3).
‘‘(2) An obligation or expenditure in an amount of
$1,000,000 or more may not be made under the authority
of this section for any single transaction until the Secretary
of Defense has notified the committees specified in para-
graph (3).
‘‘(3) The committees referred to in paragraphs (1) and
(2) are—
‘‘(A) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
‘‘(B) the Committee on National Security and
the Committee on Appropriations of the House of
Representatives.’’.
113
SEC. 373. RESTATEMENT OF REQUIREMENT FOR SEMI-
ANNUAL REPORTS TO CONGRESS ON TRANS-
FERS FROM HIGH-PRIORITY READINESS AP-
PROPRIATIONS.
Section 361 of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2732)
is amended to read as follows:
‘‘SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON
TRANSFERS 
FROM 
HIGH-PRIORITY 
READI-
NESS APPROPRIATIONS.
‘‘(a) ANNUAL REPORTS.—(1) During 1996 and 1997,
the Secretary of Defense shall submit to the congressional
defense committees a report on transfers during the preced-
ing fiscal year from funds available for the budget activities
specified in subsection (d) (hereinafter in this section re-
ferred to as ‘covered budget activities’). The report each year
shall be submitted not later than the date in that year on
which the President submits the budget for the next fiscal
year to Congress pursuant to section 1105 of title 31,
United States Code.
‘‘(2) Each such report shall include—
‘‘(A) specific identification of each transfer dur-
ing the preceding fiscal year of funds available for
any covered budget activity, showing the amount of
the transfer, the covered budget activity from which
114
the transfer was made, and the budget activity to
which the transfer was made; and
‘‘(B) with respect to each such transfer, a state-
ment of whether that transfer was made to a budget
activity within a different appropriation than the ap-
propriation containing the covered budget activity
from which the transfer was made or to a budget ac-
tivity within the same appropriation.
‘‘(b) MIDYEAR REPORTS.—On May 1 of each year
specified in subsection (a), the Secretary of Defense shall
submit to the congressional defense committees a report pro-
viding the same information, with respect to the first six
months of the fiscal year in which the report is submitted,
that is provided in reports under subsection (a) with respect
to the preceding fiscal year.
‘‘(c) MATTERS TO BE INCLUDED.—In each report
under this section, the Secretary shall include the following:
‘‘(1) With respect to each transfer of funds iden-
tified in the report, a statement of the specific reason
for the transfer.
‘‘(2) For each covered budget activity—
‘‘(A) a statement, for the period covered by
the report, of—
‘‘(i) the total amount of transfers into
funds available for that activity;
115
‘‘(ii) the total amount of transfers from
funds available for that activity; and
‘‘(iii) the net amount of transfers into,
or out of, funds available for that activity;
and
‘‘(B) a detailed explanation of the transfers
into, and out of, funds available for that activity
during the period covered by the report.
‘‘(d) COVERED BUDGET ACTIVITIES.—The budget ac-
tivities to which this section applies are the following:
‘‘(1) The budget activity groups (known as
‘subactivities’) within the Operating Forces budget ac-
tivity of the annual Operation and Maintenance,
Army, appropriation that are designated as follows:
‘‘(A) Combat Units.
‘‘(B) Tactical Support.
‘‘(C) Force-Related Training/Special Activi-
ties.
‘‘(D) Depot Maintenance.
‘‘(E) JCS Exercises.
‘‘(2) The budget activity groups (known as
‘subactivities’) within the Operating Forces budget ac-
tivity of the annual Operation and Maintenance,
Navy, appropriation that are designated as follows:
‘‘(A) Mission and Other Flight Operations.
116
‘‘(B) Mission and Other Ship Operations.
‘‘(C) Fleet Air Training.
‘‘(D) Ship Operational Support and Train-
ing.
‘‘(E) Aircraft Depot Maintenance.
‘‘(F) Ship Depot Maintenance.
‘‘(3) The budget activity groups (known as
‘subactivities’), or other activity, within the Operat-
ing Forces budget activity of the annual Operation
and Maintenance, Air Force, appropriation that are
designated or otherwise identified as follows:
‘‘(A) Primary Combat Forces.
‘‘(B) Primary Combat Weapons.
‘‘(C) Global and Early Warning.
‘‘(D) Air Operations Training.
‘‘(E) Depot Maintenance.
‘‘(F) JCS Exercises.’’.
SEC. 374. MODIFICATION OF NOTIFICATION REQUIREMENT
REGARDING USE OF CORE LOGISTICS FUNC-
TIONS WAIVER.
Section 2464(b) of title 10, United States Code, is
amended by striking out paragraphs (3) and (4) and insert-
ing in lieu thereof the following new paragraph:
‘‘(3) A waiver under paragraph (2) may not take effect
until the end of the 30-day period beginning on the date
117
on which the Secretary submits a report on the waiver to
the Committee on Armed Services and the Committee on
Appropriations of the Senate and the Committee on Na-
tional Security and the Committee on Appropriations of
the House of Representatives.’’.
SEC. 375. LIMITATION ON DEVELOPMENT OR MODERNIZA-
TION OF AUTOMATED INFORMATION SYS-
TEMS OF DEPARTMENT OF DEFENSE PEND-
ING REPORT.
(a) OBLIGATIONS AND EXPENDITURES SUBJECT TO
REPORT.—Of the amounts appropriated pursuant to the
authorization of appropriations in section 301, the Sec-
retary of Defense may not obligate or expend amounts in
excess of $2,411,947,000 for the development and mod-
ernization of automated data processing programs of the
Department of Defense until after the end of the 30-day pe-
riod beginning on the date on which the Inspector General
of the Department of Defense submits to Congress a report
that—
(1) addresses the ongoing concerns about per-
formance measures and management controls regard-
ing automated information systems;
(2) certifies that the Inspector General has com-
pleted review of the Base Level System Modernization
and the Sustaining Base Information System;
118
(3) certifies that the Inspector General has com-
pleted the tasks identified in the review of Standard
Installation/Division Personnel System-3;
(4) provides complete functional economic analy-
ses for Automated System for Transportation Data,
Electronic Data Interchange, Flexible Computer Inte-
grated Manufacturing, Navy Tactical Command Sup-
port System, and Defense Information System Net-
work;
(5) contains the resolution of the existing prob-
lems with the Defense Information System Network,
Continuous Acquisition and Life-Cycle Support, and
the Joint Computer-Aided Acquisition and Logistics
Support;
(6) provides the necessary waivers regarding
compelling military value, or provides complete func-
tional economic analyses, regarding Air Force
Wargaming Center Air Force Command Exercise
System, Cheyenne Mountain Upgrade, Transpor-
tation Coordinator Automated Command and Control
Information Systems, and Wing Command and Con-
trol System; and
(7) certifies the termination of the Personnel
Electronic Record Management System or provides
justification for the continued need for the program.
119
(b) AUTOMATED INFORMATION SYSTEM DEFINED.—
For purposes of this section, the term ‘‘automated informa-
tion system’’ means an automated information system of
the Department of Defense subject to section 381 of the Na-
tional Defense Authorization Act for Fiscal Year 1995 (Pub-
lic Law 103–337; 108 Stat. 2738; 10 U.S.C. 113 note).
SEC. 376. REPORT REGARDING REDUCTION OF COSTS ASSO-
CIATED 
WITH 
CONTRACT 
MANAGEMENT
OVERSIGHT.
(a) REPORT REQUIRED.—Not later than April 1,
1996, the Comptroller General of the United States shall
submit to Congress a report identifying methods to reduce
the cost to the Department of Defense of management over-
sight of contracts in connection with major defense acquisi-
tion programs.
(b) MAJOR DEFENSE ACQUISITION PROGRAMS DE-
FINED.—For purposes of this section, the term ‘‘major de-
fense acquisition programs’’ has the meaning given that
term in section 2430(a) of title 10, United States Code.
Subtitle H—Other Matters
SEC. 381. PROHIBITION ON CAPITAL LEASE FOR DEFENSE
BUSINESS MANAGEMENT UNIVERSITY.
None of the funds appropriated to the Department of
Defense for fiscal year 1996 may be used to enter into any
lease with respect to the Center for Financial Management
120
Education and Training of the Defense Business Manage-
ment University if the lease would be treated as a capital
lease for budgetary purposes.
SEC. 382. AUTHORITY OF INSPECTOR GENERAL OVER IN-
VESTIGATIONS OF PROCUREMENT FRAUD.
(a) AUTHORITY.—Section 141 of title 10, United
States Code, is amended by adding at the end the following
new subsection:
‘‘(c) The Inspector General shall be responsible for and
shall oversee all investigations of procurement fraud within
the Department of Defense.’’.
(b) IMPLEMENTATION.—The Secretary of Defense shall
take such action as may be necessary to implement the
amendment made by subsection (a).
SEC. 383. PROVISION OF EQUIPMENT AND FACILITIES TO
ASSIST IN EMERGENCY RESPONSE ACTIONS.
Section 372 of title 10, United States Code, is amended
by adding at the end the following new sentence: ‘‘Assistance
provided under this section may include training facilities,
sensors, protective clothing, antidotes, and other materials
and expertise of the Department of Defense appropriate for
use by a Federal, State, or local law enforcement agency
in preparing for or responding to an emergency involving
chemical or biological agents if the Secretary determines
121
that the materials or services to be provided are not reason-
ably available from another source.’’.
SEC. 384. CONVERSION OF CIVILIAN MARKSMANSHIP PRO-
GRAM TO NONAPPROPRIATED FUND INSTRU-
MENTALITY AND ACTIVITIES UNDER PRO-
GRAM.
(a) CONVERSION.—Section 4307 of title 10, United
States Code, is amended to read as follows:
‘‘§ 4307. Promotion of rifle practice and firearms safe-
ty: administration
‘‘(a) NONAPPROPRIATED FUND INSTRUMENTALITY.—
On and after October 1, 1995, the Civilian Marksmanship
Program shall be operated as a nonappropriated fund in-
strumentality of the United States within the Department
of Defense for the benefit of members of the armed forces
and for the promotion of rifle practice and firearms safety
among civilians.
‘‘(b) NATIONAL BOARD.—(1) The Civilian Marksman-
ship Program shall be under the general supervision of a
National Board for the Promotion of Rifle Practice and
Firearms Safety, which shall replace the National Board
for the Promotion of Rifle Practice. The National Board
shall consist of nine members who are appointed by the Sec-
retary of the Army.
122
‘‘(2) The term of office of a member of the National
Board shall be two years. However, in the case of the initial
National Board, the Secretary shall appoint four members
who will have a one-year term.
‘‘(3) Members of the National Board shall serve with-
out compensation, except that members shall be allowed
travel expenses, including per diem in lieu of subsistence,
at rates authorized for employees of agencies under sub-
chapter I of chapter 57 of title 5, while away from their
homes or regular places of business in the performance of
services for the National Board.
‘‘(c) DIRECTOR
AND STAFF.—The National Board
shall appoint a person to serve as director of the Civilian
Marksmanship Program. The compensation and benefits of
the director and all other civilian employees of the Depart-
ment of Defense used by the Civilian Marksmanship Pro-
gram shall be paid from nonappropriated funds available
to the Civilian Marksmanship Program.
‘‘(d) FUNDING.—(1) Except as provided in section
4310 of this title, funds appropriated or otherwise made
available to the Department of Defense in appropriation
Acts may not be obligated or expended to benefit the Civil-
ian Marksmanship Program or activities conducted by the
Civilian Marksmanship Program.
123
‘‘(2) The National Board and the director may solicit,
accept, hold, use, and dispose of, in furtherance of the ac-
tivities of the Civilian Marksmanship Program, donations
of money, property, and services received by gift, devise, be-
quest, or otherwise. Donations may be accepted from muni-
tions and firearms manufacturers notwithstanding any
legal restrictions otherwise arising from their procurement
relationships with the United States.
‘‘(3) Amounts collected under the Civilian Marksman-
ship Program, including the proceeds from the sale of arms,
ammunition, targets, and other supplies and appliances
under section 4308 of this title, shall be credited to the Civil-
ian Marksmanship Program and shall be available to carry
out the Civilian Marksmanship Program. Amounts collected
by, and available to, the National Board for the Promotion
of Rifle Practice before the date of the enactment of this
section from rifle sales programs and from fees in connec-
tion with competitions sponsored by that Board shall be
transferred to the National Board to be available to carry
out the Civilian Marksmanship Program.
‘‘(4) Funds held on behalf of the Civilian Marksman-
ship Program shall not be construed to be Government or
public funds or appropriated funds and shall not be avail-
able to support other nonappropriated fund instrumental-
ities of the Department of Defense. Funds held on behalf
124
of other nonappropriated fund instrumentalities of the De-
partment of Defense shall not be available to support the
Civilian Marksmanship Program. Expenditures on behalf
of the Civilian Marksmanship Program, including com-
pensation and benefits for civilian employees, may not ex-
ceed $5,000,000 during any fiscal year. The approval of the
National Board shall be required for any expenditure in
excess of $50,000. Notwithstanding any other provision of
law, funds held on behalf of the Civilian Marksmanship
Program shall remain available until expended.
‘‘(e) DEFINITIONS.—In this section and sections 4308
through 4313 of this title:
‘‘(1) The term ‘Civilian Marksmanship Program’
means the rifle practice and firearms safety program
carried out by the National Board under section 4308
and includes the National Matches and small-arms
firing schools referred to in section 4312 of this title.
‘‘(2) The term ‘National Board’ means the Na-
tional Board for the Promotion of Rifle Practice and
Firearms Safety.’’.
(b) ACTIVITIES.—Section 4308 of such title is amended
to read as follows:
125
‘‘§ 4308. Promotion of rifle practice and firearms safe-
ty: activities
‘‘(a) INSTRUCTION, SAFETY, AND COMPETITION PRO-
GRAMS.—(1) The Civilian Marksmanship Program shall
provide for—
‘‘(A) the operation and maintenance of indoor
and outdoor rifle ranges and their accessories and ap-
pliances;
‘‘(B) the instruction of citizens of the United
States in marksmanship, and the employment of nec-
essary instructors for that purpose;
‘‘(C) the promotion of practice in the use of ri-
fled arms and the maintenance and management of
matches or competitions in the use of those arms; and
‘‘(D) the award to competitors of trophies, prizes,
badges, and other insignia.
‘‘(2) In carrying out this subsection, the Civilian
Marksmanship Program shall give priority to activities
that benefit firearms safety training and competition for
youth and reach as many youth participants as possible.
‘‘(3) Before a person may participate in any activity
sponsored or supported by the Civilian Marksmanship Pro-
gram under this subsection, the person shall be required to
certify that the person has not violated any Federal or State
firearms laws.
126
‘‘(b) SALE AND ISSUANCE OF ARMS AND AMMUNI-
TION.—(1) The Civilian Marksmanship Program may
issue, without cost, the arms, ammunition (including cali-
ber .22 and caliber .30 ammunition), targets, and other
supplies and appliances necessary for activities conducted
under subsection (a). Issuance shall be made only to gun
clubs under the direction of the National Board that provide
training in the use of rifled arms to youth, the Boy Scouts
of America, 4–H Clubs, Future Farmers of America, and
other youth-oriented organizations for training and com-
petition.
‘‘(2) The Civilian Marksmanship Program may sell at
fair market value caliber .30 rifles, caliber .22 rifles, and
air rifles, and ammunition for such rifles, to gun clubs that
are under the direction of the National Board and provide
training in the use of rifled arms. In lieu of sales, the Civil-
ian Marksmanship Program may loan such rifles to such
gun clubs.
‘‘(3) The Civilian Marksmanship Program may sell at
fair market value small arms, ammunition, targets, and
other supplies and appliances necessary for target practice
to citizens of the United States over 18 years of age who
are members of a gun club under the direction of the Na-
tional Board.
127
‘‘(4) Before conveying any weapon or ammunition to
a person, whether by sale or lease, the National Board shall
provide for a criminal records check of the person with ap-
propriate Federal and State law enforcement agencies.
‘‘(c) OTHER AUTHORITIES.—The National Board shall
provide for—
‘‘(1) the procurement of necessary supplies, ap-
pliances, trophies, prizes, badges, and other insignia,
clerical and other services, and labor to carry out the
Civilian Marksmanship Program; and
‘‘(2) the transportation of employees, instructors,
and civilians to give or to receive instruction or to as-
sist or engage in practice in the use of rifled arms,
and the transportation and subsistence, or an allow-
ance instead of subsistence, of members of teams au-
thorized by the National Board to participate in
matches or competitions in the use of rifled arms.
‘‘(d) FEES.—The National Board may impose reason-
able fees for persons and gun clubs participating in any
program or competition conducted under the Civilian
Marksmanship Program for the promotion of rifle practice
and firearms safety among civilians.
‘‘(e) RECEIPT OF EXCESS ARMS AND AMMUNITION.—
(1) The Secretary of the Army shall reserve for the Civilian
Marksmanship Program all remaining M–1 Garand rifles,
128
and ammunition for such rifles, still held by the Army.
After the date of the enactment of this section, the Secretary
of the Army shall cease demilitarization of remaining M–
1 Garand rifles in the Army inventory unless such rifles
are determined to be irreparable by the Defense Logistics
Agency.
‘‘(2) Transfers under this subsection shall be made
without cost to the Civilian Marksmanship Program, except
that the National Board shall assume the costs of transpor-
tation for the transferred small arms and ammunition.
‘‘(f) PARTICIPATION CONDITIONS.—(1) All partici-
pants in the Civilian Marksmanship Program and activi-
ties sponsored or supported by the National Board shall be
required, as a condition of participation, to sign affidavits
stating that—
‘‘(A) they have never been convicted of a firearms
violation under State or Federal law; and
‘‘(B) they are not members of any organization
which advocates the violent overthrow of the United
States Government.
‘‘(2) Any person found to have violated this subsection
shall be ineligible to participate in the Civilian Marksman-
ship Program and future activities sponsored or supported
by the National Board.’’.
129
(c) PARTICIPATION
OF MEMBERS
OF
THE ARMED
FORCES
IN
INSTRUCTION
AND
COMPETITION.—Section
4310 of such title is amended to read as follows:
‘‘§ 4310. Rifle instruction and competitions: participa-
tion of members
‘‘(a) PARTICIPATION AUTHORIZED.—The commander
of a major command of the armed forces may detail regular
or reserve officers and noncommissioned officers under the
authority of the commander to duty as instructors at rifle
ranges for training civilians in the safe use of military
arms. The commander of a major command may detail en-
listed members under the authority of the commander as
temporary instructors in the safe use of the rifle to orga-
nized rifle clubs requesting that instruction. The com-
mander of a major command may detail members under
the authority of the commander to provide other logistical
and administrative support for competitions and other ac-
tivities conducted by the Civilian Marksmanship Program.
Members of a reserve component may be detailed only if
the service to be provided meets a legitimate training need
of the members involved.
‘‘(b) COSTS OF PARTICIPATION.—The commander of a
major command of the armed forces may pay the personnel
costs and travel and per diem expenses of members of an
active or reserve component of the armed forces who partici-
130
pate in a competition sponsored by the Civilian Marksman-
ship Program or who provide instruction or other services
in support of the Civilian Marksmanship Program.’’.
(d) CONFORMING AMENDMENTS.—(1) Section 4312(a)
of such title is amended by striking out ‘‘as prescribed by
the Secretary of the Army’’ and inserting in lieu thereof
‘‘as part of the Civilian Marksmanship Program’’.
(2) Section 4313 of such title is amended—
(A) in subsection (a), by striking out ‘‘Secretary
of the Army’’ both places it appears and inserting in
lieu thereof ‘‘National Board’’; and
(B) in subsection (b), by striking out ‘‘Appro-
priated funds available for the Civilian Marksman-
ship Program (as defined in section 4308(e) of this
title) 
may’’ 
and 
inserting 
in 
lieu 
thereof
‘‘Nonappropriated funds available to the Civilian
Marksmanship Program shall’’.
(e) CLERICAL AMENDMENTS.—The table of sections at
the beginning of chapter 401 of such title is amended by
striking out the items relating to sections 4307, 4308, and
4310 and inserting in lieu thereof the following new items:
‘‘4307. Promotion of rifle practice and firearms safety: administration.
‘‘4308. Promotion of rifle practice and firearms safety: activities.
‘‘4310. Rifle instruction and competitions: participation of members.’’.
(f) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 1995.
131
SEC. 385. PERSONNEL SERVICES AND LOGISTICAL SUP-
PORT FOR CERTAIN ACTIVITIES HELD ON
MILITARY INSTALLATIONS.
Section 2544 of title 10, United States Code, is amend-
ed—
(1) by redesignating subsection (g) as subsection
(h); and
(2) by inserting after subsection (f) the following
new subsection:
‘‘(g) In the case of a Boy Scout Jamboree held on a
United States military installation, the Secretary of De-
fense may provide personnel services and logistical support
at the military installation in addition to the support au-
thorized under subsections (a) and (d).’’.
SEC. 386. RETENTION OF MONETARY AWARDS.
(a) MONETARY AWARDS.—Chapter 155 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2610. Acceptance of monetary awards from competi-
tion for excellence
‘‘(a) ACCEPTANCE AUTHORIZED.—The Secretary of
Defense may accept any monetary award given to the De-
partment of Defense by a nongovernmental entity as an
award in competition recognizing excellence or innovation
in providing services or administering programs.
132
‘‘(b) DISPOSITION OF AWARDS.—(1) Subject to para-
graph (2), a monetary award accepted under subsection (a)
shall be credited to the appropriation supporting the oper-
ation of the command, installation, or other activity that
is recognized for the award and, in such amount as is pro-
vided in advance in appropriation Acts, shall be available
for the same purposes as the underlying appropriation.
‘‘(2) Subject to such limitations as may be provided
in appropriation Acts, the Secretary of Defense may dis-
burse an amount not to exceed 50 percent of the monetary
award to persons who are responsible for the excellence or
innovation recognized by the award. A person may not re-
ceive more than $10,000 under the authority of this para-
graph from any monetary reward.
‘‘(c) INCIDENTAL EXPENSES.—Subject to such limita-
tions as may be provided in appropriation Acts, appropria-
tions available to the Department of Defense may be used
to pay incidental expenses incurred to compete in a com-
petition described in subsection (a) or to accept a monetary
award under this section.
‘‘(d) REGULATIONS AND REPORTING.—(1) The Sec-
retary of Defense shall prescribe regulations to determine
the disposition of any monetary awards accepted under this
section and the payment of incidental expenses under sub-
section (c).
133
‘‘(2) The Secretary of Defense shall submit to Congress
an annual report describing the disposition of any mone-
tary awards accepted under this section and the payment
of any incidental expenses under this subsection (c).’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘2610. Acceptance of monetary awards from competition for excellence.’’.
SEC. 387. CIVIL RESERVE AIR FLEET.
Section 9512 of title 10, United States Code, is amend-
ed by striking out ‘‘full’’ before ‘‘Civil Reserve Air Fleet’’
in subsections (b)(2) and (e).
SEC. 388. PERMANENT AUTHORITY REGARDING USE OF
PROCEEDS 
FROM 
SALE 
OF 
LOST, 
ABAN-
DONED, AND UNCLAIMED PERSONAL PROP-
ERTY AT CERTAIN INSTALLATIONS.
(a) CONVERSION
OF
EXISTING
DEMONSTRATION
PROJECT.—Section 343 the National Defense Authorization
Act for Fiscal Years 1992 and 1993 (Public Law 102–190;
105 Stat. 1343) is amended by striking out subsections (d)
and (e) and inserting in lieu thereof the following new sub-
section:
‘‘(d) APPLICATION OF SPECIAL RULE.—The special
rule provided by subsection (a) shall apply with respect to
the disposal under section 2575 of title 10, United States
134
Code, of property found on the military installations re-
ferred to in subsection (b).’’.
(b) CONFORMING AMENDMENTS.—Subsection (a) of
such section is amended—
(1) by striking out ‘‘DEMONSTRATION PROJECT’’
in the subsection heading and inserting in lieu thereof
‘‘SPECIAL RULE REGARDING PROCEEDS’’; and
(2) by striking out ‘‘demonstration project’’ and
inserting in lieu thereof ‘‘permanent program’’.
SEC. 389. TRANSFER OF EXCESS PERSONAL PROPERTY TO
SUPPORT LAW ENFORCEMENT ACTIVITIES.
Section 1208(a)(1)(A) of the National Defense Author-
ization Act for Fiscal Years 1990 and 1991 (P.L. 101–189;
10 U.S.C. 372 note) is amended by striking out ‘‘counter-
drug activities’’ and inserting in lieu thereof ‘‘law enforce-
ment activities, including counter-drug activities’’.
SEC. 390. DEVELOPMENT AND IMPLEMENTATION OF INNO-
VATIVE PROCESSES TO IMPROVE OPERATION
AND MAINTENANCE.
Of the amounts authorized to be appropriated under
section 301(5), $350,000,000 shall be available to the Sec-
retary of Defense for the development or acquisition of in-
formation technologies and reengineered functional proc-
esses, such as in the areas of personnel management, fi-
nance, and depot-level maintenance, for implementation
135
within the Department of Defense. Before obligating or ex-
pending funds under this section for an information tech-
nology or reengineered functional process, the Secretary
shall certify to Congress that the information technology or
reengineered functional process—
(1) demonstrates a rate of return, within three
years, of 300 percent compared to the investment
made under this section; or
(2) would have a measurable effect upon the ef-
fectiveness of the readiness of the Armed Forces or the
operation and management of the Department of De-
fense.
SEC. 391. REVIEW OF USE OF DEFENSE LOGISTICS AGENCY
TO MANAGE INVENTORY CONTROL POINTS.
(a) REVIEW OF CONSOLIDATION OF INVENTORY CON-
TROL POINTS.—The Secretary of Defense shall conduct a
review regarding the consolidation under the Defense Logis-
tics Agency of all inventory control points, including the
inventory management and acquisition of depot-level
repairables.
(b) SUBMISSION OF RESULTS.—Not later than March
31, 1996, the Secretary shall complete the review and sub-
mit a report to the congressional defense committees describ-
ing the results the review.
136
(c) LIMITATION ON IMPLEMENTATION OF MATERIEL
MANAGEMENT STANDARD SYSTEM.—Pending the submis-
sion of the report, the Secretary of Defense may not proceed
with the implementation of the automated data processing
program of the Department of Defense known as the Mate-
riel Management Standard System.
SEC. 392. SALE OF 50 PERCENT OF CURRENT WAR RESERVE
FUEL STOCKS.
(a) 
SALE
REQUIRED.—Notwithstanding 
section
2390(a) of title 10, United States Code, the Secretary of
Defense shall reduce war reserve fuel stocks of the Depart-
ment of Defense to a level equal to 50 percent of the level
of such stocks on January 1, 1995. The Secretary shall
achieve the reduction through consumption of fuel in the
Department of Defense and, if necessary, sales of fuel out-
side the Department to the highest qualified bidders.
(b) SUBSEQUENT FUEL PURCHASES.—After the date
of the enactment of this Act, fuel purchases for the Depart-
ment of Defense shall be made on the basis of the actual
fuel needs of the Department.
(c) REPORT.—Not later than March 1, 1996, the Sec-
retary of Defense shall submit to Congress a report describ-
ing the manner in which the reduction of war reserve fuel
stocks is to be made and the time period within which the
reduction is to be achieved.
137
(d) SUSPENSION
OF REDUCTION; INCREASES.—The
Secretary of Defense may suspend the reduction of war re-
serve fuel stocks, and in fact increase such stocks as other-
wise authorized by law, in the event of a national emer-
gency or to advance the national security interests of the
United States.
SEC. 393. MILITARY CLOTHING SALES STORES, REPLACE-
MENT SALES.
(a) IN GENERAL.—(1) Chapter 651 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 7606. Subsistence and other supplies: members of
armed forces; veterans; executive or mili-
tary departments and employees; prices
‘‘(a) The branch, office, or officer designated by the
Secretary of the Navy shall procure and sell, for cash or
credit—
‘‘(1) articles specified by the Secretary of the
Navy or a person designated by the Secretary, to
members of the Navy and Marine Corps; and
‘‘(2) items of individual clothing and equipment
to members of the Navy and Marine Corps, under
such restrictions as the Secretary may prescribe.
An account of sales on credit shall be kept and the amount
due reported to any branch office, or officer designated by
138
the Secretary. Except for articles and items acquired
through the use of working capital funds under section 2208
of this title, sales of articles shall be at cost, and sales of
individual clothing and equipment shall be at average cur-
rent prices, including overhead, as determined by the Sec-
retary.
‘‘(b) The branch, office, or officer designated by the
Secretary shall sell subsistence supplies to members of other
armed forces at the prices at which like property is sold
to members of the Navy and Marine Corps.
‘‘(c) The branch, office, or officer designated by the Sec-
retary may sell serviceable supplies, other than subsistence
supplies, to members of other armed forces at the prices at
which like property is sold to members of the Navy and
Marine Corps.
‘‘(d) A person who has been discharged honorably or
under honorable conditions from the Army, Navy, Air
Force, or Marine Corps and who is receiving care and medi-
cal treatment from the Public Health Service or the Depart-
ment of Veterans Affairs may buy subsistence supplies and
other supplies, except articles of uniform, at the prices at
which like property is sold to members of the Navy and
Marine Corps.
‘‘(e) Under such conditions as the Secretary may pre-
scribe, exterior articles of uniform may be sold to a person
139
who has been discharged from the Navy or Marine Corps
honorably or under honorable conditions at the prices at
which like articles are sold to members of the Navy or Ma-
rine Corps. This subsection does not modify section 772 or
773 of this title.
‘‘(f) Under regulations prescribed by the Secretary,
payment for subsistence supplies shall be made in cash or
by commercial credit.
‘‘(g) The Secretary may provide for the procurement
and sale of stores designated by him to such civilian officers
and employees of the United States, and such other persons,
as he considers proper—
‘‘(1) at military installations outside the United
States (provided such sales conform with host nation
support agreements); and
‘‘(2) at military installations inside the United
States where the Secretary determines that it is im-
practicable for those civilian officers, employees, and
persons to obtain those stores from commercial enter-
prises without impairing the efficient operation of
military activities.
However, sales to such civilian officers and employees inside
the United States may be only to those who reside within
military installations.
140
‘‘(h) Appropriations for subsistence of the Navy or Ma-
rine Corps may be applied to the purchase of subsistence
supplies for sale to members of the Navy and Marine Corps
on active duty for the use of themselves and their families.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘7606. Subsistence and other supplies: members of armed forces; veterans; execu-
tive or military departments and employees; prices.’’.
(b) CONFORMING AMENDMENTS FOR OTHER ARMED
FORCES.—(1) Section 4621(f) of such title is amended by
inserting before the period at the end the following: ‘‘or by
commercial credit’’.
(2) Section 9621(f) of such title is amended by insert-
ing before the period at the end the following: ‘‘or by com-
mercial credit’’.
SEC. 394. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES
THAT BENEFIT DEPENDENTS OF MEMBERS
OF THE ARMED FORCES AND DEPARTMENT
OF DEFENSE CIVILIAN EMPLOYEES.
(a) CONTINUATION
OF DEPARTMENT
OF DEFENSE
PROGRAM.—Of the amounts authorized to be appropriated
in section 301(5)—
(1) $50,000,000 shall be available for providing
educational agencies assistance (as defined in sub-
section (d)(1)) to local educational agencies; and
141
(2) $8,000,000 shall be available for making edu-
cational agencies payments (as defined in subsection
(d)(2)) to local educational agencies.
(b) NOTIFICATION OF AVAILABILITY OF FUNDS.—Not
later than June 30, 1996—
(1) the Secretary of Defense shall notify each
local educational agency that is eligible for edu-
cational agencies assistance for fiscal year 1996 of
that agency’s eligibility for such assistance and the
amount of such assistance for which that agency is el-
igible; and
(2) the Secretary of Education shall notify each
local educational agency that is eligible for an edu-
cational agencies payment for fiscal year 1996 of that
agency’s eligibility for such payment and the amount
of the payment for which that agency is eligible.
(c) DISBURSEMENT.—The Secretary of Defense (with
respect to funds made available under subsection (a)(1))
and the Secretary of Education (with respect to funds made
available under subsection (a)(2)) shall disburse such funds
not later than 30 days after the date on which notification
to the eligible local education agencies is provided pursuant
to subsection (b).
(d) DEFINITIONS.—For purposes of this section:
142
(1) The term ‘‘educational agencies assistance’’
means assistance authorized under subsection (b) of
section 386 of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C.
238 note).
(2) The term ‘‘educational agencies payments’’
means payments authorized under subsection (d) of
that section.
(e) REDUCTION IN IMPACT THRESHOLD.—Subsection
(c)(1) of section 386 of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C.
238 note) is amended—
(1) by striking out ‘‘30 percent’’ and inserting in
lieu thereof ‘‘20 percent’’; and
(2) by striking out ‘‘counted under subsection (a)
or (b) of section 3 of the Act of September 30, 1950
(Public Law 874, Eighty-first Congress; 20 U.S.C.
238)’’.
(f) EXTENSION OF REPORTING REQUIREMENT.—Sub-
section (e)(1) of section 386 of the National Defense Author-
ization Act for Fiscal Year 1993 (Public Law 102–484; 20
U.S.C. 238 note) is amended by striking out ‘‘and 1995’’
and inserting in lieu thereof ‘‘1995, and 1996’’.
(g) TECHNICAL AMENDMENTS TO CORRECT REF-
ERENCES TO REPEALED LAW.—Section 386 of the National
143
Defense Authorization Act for Fiscal Year 1993 (Public
Law 102–484; 20 U.S.C. 238 note) is amended—
(1) in subsection (d), by striking out ‘‘under sec-
tion 3’’ and all that follows through ‘‘of such sub-
section that result from’’ and inserting in lieu thereof
‘‘payments under section 8003(e) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
7703(e)) as a result of’’;
(2) in subsection (e)(2)(C), by inserting after ‘‘et
seq.),’’ the following: ‘‘title VIII of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
7701 et seq.),’’;
(3) in subsection (e)(2)(D), by striking out
‘‘under subsections (a) and (b) of section 3 of such Act
(20 U.S.C. 238)’’; and
(4) in subsection (h)—
(A) in paragraph (1), by striking out ‘‘sec-
tion 1471(12) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 2891(12))’’
and inserting in lieu thereof ‘‘section 8013(9) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7713(9))’’; and
(B) by striking out paragraph (3) and in-
serting in lieu thereof the following new para-
graph:
144
‘‘(3) The term ‘State’ does not include Puerto
Rico, Wake Island, Guam, American Samoa, the
Northern Mariana Islands, or the Virgin Islands.’’.
SEC. 395. CORE LOGISTICS CAPABILITIES OF THE DEPART-
MENT OF DEFENSE.
(a) IN GENERAL.—Chapter 146 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 2473. Depot-level maintenance and repair workload
‘‘(a) IMPORTANCE
OF DEPOT-LEVEL MAINTENANCE
AND REPAIR CORE CAPABILITIES.—It is essential for the
national defense that the United States maintain a core
depot-level maintenance and repair capability (including
skilled personnel, equipment, and facilities) within facilities
owned and operated by the Department of Defense that—
‘‘(1) is of the proper size (A) to ensure a ready
and controlled source of technical competence and re-
pair and maintenance capability necessary to meet
the requirements of the National Military Strategy
and other requirements for responding to military
contingencies, and (B) to provide for rapid aug-
mentation in time of emergency; and
‘‘(2) is assigned sufficient workload to ensure
cost efficiency and proficiency in time of peace.
145
‘‘(b) DETERMINATION OF CORE DEPOT MAINTENANCE
ACTIVITIES.—(1) The Secretary of each military depart-
ment shall identify those depot-level maintenance and re-
pair activities under that Secretary’s jurisdiction that are
necessary to ensure for that military department the depot-
level maintenance and repair capability described in sub-
section (a) and as required by section 2464 of this title.
‘‘(2) The Secretary of each military department shall
prescribe the procedures to be used to quantify the require-
ments necessary to support the capability described in sub-
section (a).
‘‘(c) PERFORMANCE OF WORKLOAD THAT SUPPORTS
DEPOT-LEVEL MAINTENANCE AND REPAIR CORE CAPABILI-
TIES.—The Secretary of each military department shall re-
quire the performance of depot-level maintenance and re-
pair of activities identified under subsection (b) at organic
Department of Defense maintenance depots at levels suffi-
cient to ensure that the Department of Defense maintains
the core depot-level maintenance and repair capability de-
scribed in subsection (a).
‘‘(d) INTERSERVICING OF WORKLOAD.—The Secretary
of Defense, after consultation with the Secretaries of the
military departments, may transfer workload that supports
the core capability described in subsection (a) from one
146
military department to another. The Secretary of Defense
shall use merit-based criteria in evaluating such transfers.
‘‘(e) SOURCE OF REPAIR FOR OTHER DEPOT-LEVEL
WORKLOADS.—In the case of depot-level maintenance and
repair workloads in excess of the workload required pursu-
ant to subsection (c) to be performed at organic Department
of Defense depots, the Secretary of Defense, after consulta-
tion with the Secretaries of the military departments, may
provide for the performance of those workloads through
sources selected by competition. The Secretary of Defense
shall use competition between private firms and organic De-
partment of Defense depots for any such workload when the
Secretary determines there are less than two qualified
sources of supply among private firms for the performance
of that specific depot-level maintenance workload.
‘‘(f) DEPOT-LEVEL WORKLOAD COMPETITIONS.—In
any competition under this section for a depot-level work-
load (whether among private firms or between Department
of Defense activities and private firms), bids from any en-
tity participating in the competition shall accurately dis-
close all costs properly and consistently derived from ac-
counting systems and practices that comply with laws, poli-
cies, and standards applicable to that entity. In any com-
petition between Department of Defense activities and pri-
vate firms, the Government calculation for the cost of per-
147
formance of the function by Department of Defense civilian
employees shall be based on an estimate using the most effi-
cient and cost effective manner for performance of such
function by Department of Defense civilian employees.
‘‘(g) ANNUAL REPORT.—Not later than March 1 of
each year, the Secretary of Defense shall submit to Congress
a report specifying depot maintenance core capability re-
quirements determined in accordance with the procedures
established to comply with subsection (b)(2) and the
planned amount of workload to be accomplished in the or-
ganic depots of each military department in support of
those requirements for the following fiscal year. The report
shall identify the planned amount of workload measured
by direct labor hours and by amounts expended and shall
be shown separately for each commodity group.’’.
(b) REPEAL OF 60/40 REQUIREMENT AND REQUIRE-
MENT RELATING TO COMPETITION.—Effective December 31,
1996—
(1) section 2466 of title 10, United States Code,
is repealed unless Congress takes further action re-
garding such repeal; and
(2) section 2469 of title 10, United States Code,
is repealed unless Congress takes further action re-
garding such repeal.
148
(c) INTERIM EXCLUSION OF LARGE MAINTENANCE AND
REPAIR PROJECTS FROM 60/40 REQUIREMENT.—Effective
on the date of the enactment of this Act, section 2466(d)
of title 10, United States Code, is amended—
(1) by striking out ‘‘EXCEPTION.—’’ and insert-
ing in lieu thereof ‘‘EXCEPTIONS.—(1)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) If a maintenance or repair project for a single
item that is contracted for performance by non-Federal
Government personnel accounts for 5 percent or more of the
funds made available in a fiscal year to a military depart-
ment or a Defense Agency for depot-level maintenance and
repair workload, the project and the funds necessary for the
project shall not be considered when applying the percent-
age limitation specified in subsection (a) to that military
department or Defense Agency.’’.
(d) CLERICAL AMENDMENTS.—The table of sections at
the beginning of chapter 146 of such title is amended—
(1) effective December 31, 1996, by striking out
the items relating to sections 2466 and 2469; and
(2) by adding at the end the following new item:
‘‘2473. Depot-level maintenance and repair workload.’’.
(e) REPORT ON DEPOT-LEVEL MAINTENANCE AND RE-
PAIR WORKLOAD.—Not later than March 1, 1996, the Sec-
retary of Defense shall submit to Congress a report on the
149
depot-level maintenance and repair workload of the Depart-
ment of Defense. The report shall include the following:
(1) The analysis required by subsection (f) of the
effect on that workload of the so-called 60/40 require-
ment.
(2) The analysis required by subsection (g) of the
projected effect on that workload using a definition of
core capability consistent with the description in sec-
tion 2473(a) of title 10, United States Code, as added
by subsection (a).
(3) The comparison of those analyses required by
subsection (h).
(4) Identification and analysis of significant is-
sues that arise if organic Department of Defense de-
pots are allowed to participate in a full and open
competition with private firms for repair workloads
in excess of work that supports core capabilities.
(f) 60/40 REQUIREMENT.—(1) The report under sub-
section (e) shall include an analysis of the requirement
under section 2466 of title 10, United States Code, that no
more than 40 percent of the depot-level maintenance and
repair work of the Department of Defense be contracted for
performance by non-Government personnel. That analysis
shall include the following:
150
(A) A description of the effect on military readi-
ness and the national security resulting from that re-
quirement, including a description of any specific dif-
ficulties experienced by the Department of Defense as
a result of that requirement.
(B) A determination of the depot-level mainte-
nance and repair workload of the Department of De-
fense allocated for performance by organic Depart-
ment of Defense depots for any fiscal year during
which the requirement has been in effect, the percent-
age of funds for that workload that were obligated to
private sector entities, shown for each such fiscal year
and for the entire period during which the require-
ment has been in effect.
(2) That analysis shall be made with respect to—
(A) the distribution during the five fiscal years
ending with fiscal year 1995 of the depot-level main-
tenance and repair workload of the Department of
Defense between organic Department of Defense depots
and non-Government personnel, measured by direct
labor hours and by amounts expended, and displayed,
for that five-year period and for each year of that pe-
riod, so as to show (for each military department
(and separately for the Navy and Marine Corps))
151
such distribution for each commodity group (such as
naval vessels, aircraft, tracked combat vehicles); and
(B) the projected distribution during the five fis-
cal years beginning with fiscal year 1996 of the
depot-level maintenance and repair workload of the
Department of Defense between organic Department
of Defense depots and non-Government personnel, set
forth in the same manner as described in subpara-
graph (A).
(g) CORE WORKLOAD ANALYSIS.—The report under
subsection (e) shall include an analysis of the depot-level
maintenance and repair workload of the Department of De-
fense in which the Secretary uses the capability described
in section 2473(a) of title 10, United States Code, as added
by subsection (a), as the standard for determining that por-
tion of such workload that is required to be performed in
organic Department of Defense facilities. That analysis
shall be made with respect to—
(1) the distribution that would (using that
standard) have been made during the five fiscal years
ending with fiscal year 1995 of the depot-level main-
tenance and repair workload of the Department of
Defense between organic Department of Defense depots
and non-Government personnel, measured by direct
labor hours and by amounts expended, and displayed,
152
for that five-year period and for each year of that pe-
riod, so as to show (for each military department
(and separately for the Navy and Marine Corps))
such distribution for each commodity group (such as
naval vessels, aircraft, tracked combat vehicles); and
(2) the projected distribution (using that stand-
ard) during the five fiscal years beginning with fiscal
year 1996 of the depot-level maintenance and repair
workload of the Department of Defense between or-
ganic Department of Defense depots and non-Govern-
ment personnel, set forth in the same manner as de-
scribed in paragraph (1).
(h) COMPARISON.—The report under subsection (e)
shall include a comparison of the results of the analysis of
the depot-level maintenance and repair workload of the De-
partment of Defense under subsection (f) with the results
of the analysis of that workload under subsection (g). The
comparison shall include a comparison of the two analyses
by service and commodity group with respect to each of the
following:
(1) Identification, based on each analysis, of core
workloads and of the capabilities and equipment
needed to perform depot-level maintenance and repair
for those core workloads.
153
(2) Identification, based on each analysis, of
depot-level maintenance and repair work performed
(or that would be performed) at organic Department
of Defense depots and of depot-level maintenance and
repair work performed (or that would be performed)
by non-Government personnel.
(3) Readiness.
(4) The Department of Defense budget.
(5) The depot-level maintenance and repair
workload distribution, under each analysis, by direct
labor hours performed and by dollars expended.
(6) Projected level, for each analysis, of Govern-
ment capital investment in public and private depot-
level maintenance and repair facilities.
(i) REVIEW BY GAO.—(1) The Comptroller General of
the United States shall conduct an independent audit of
the findings of the Secretary of Defense in the report under
subsection (e). The Secretary of Defense shall provide to the
Comptroller General for such purpose all information used
by the Secretary in preparing such report.
(2) Not later than April 1, 1996, the Comptroller Gen-
eral shall submit to the congressional defense committees a
report on the analysis by the Comptroller General of the
report submitted by the Secretary of Defense under this sec-
tion.
154
TITLE IV—MILITARY PERSONNEL
AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 1996 , as follows:
(1) The Army, 495,000.
(2) The Navy, 428,000.
(3) The Marine Corps, 174,000.
(4) The Air Force, 388,200.
SEC. 402. TEMPORARY VARIATIONS IN DOPMA AUTHORIZED
END STRENGTH LIMITATIONS FOR ACTIVE
DUTY NAVY AND AIR FORCE OFFICERS IN
CERTAIN GRADES.
(a) AIR FORCE OFFICERS IN GRADE OF MAJOR.—Not-
withstanding section 523(a)(1) of title 10, United States
Code, and except as provided in section 523(c) of such title,
of the total number of commissioned officers serving on ac-
tive duty in the Air Force at the end of any fiscal year
through fiscal year 1997 (excluding officers in categories
specified in section 523(b) of title 10, United States Code),
the number of officers who may be serving on active duty
in the grade of major may not, as of the end of such fiscal
year, exceed the number determined in accordance with the
following table:
155
Total number of Air Force commissioned officers
(excluding officers in categories specified in sec-
tion 523(b) of title 10, United States Code) on
active duty
Number of of-
ficers who
may be serv-
ing on active
duty in grade
of major
70,000 ............................................
14,612
75,000 ............................................
15,407
80,000 ............................................
16,202
85,000 ............................................
16,997
90,000 ............................................
17,792
95,000 ............................................
18,587
100,000 ............................................
19,382
105,000 ............................................
20,177
110,000 ............................................
20,971
115,000 ............................................
21,766
120,000 ............................................
22,561
125,000 ............................................
23,356
(b) NAVY OFFICERS IN GRADES OF LIEUTENANT COM-
MANDER, COMMANDER, AND CAPTAIN.—Notwithstanding
section 523(a)(2) of title 10, United States Code, and except
as provided in section 523(c) of such title, of the total num-
ber of commissioned officers serving on active duty in the
Navy at the end of any fiscal year through fiscal year 1997
(excluding officers in categories specified in section 523(b)
of title 10, United States Code), the number of officers who
may be serving on active duty in each of the grades of lieu-
tenant commander, commander, and captain may not, as
of the end of such fiscal year, exceed a number determined
in accordance with the following table:
Total number of Navy commissioned officers (ex-
cluding officers in categories specified in section
523(b) of title 10, United States Code) on active
duty
Number of officers who may be serving on active
duty in grade of
Lieutenant
Commander
Commander
Captain
45,000 ..............................................
10,034
6,498
2,801
48,000 ..............................................
10,475
6,706
2,902
51,000 ..............................................
10,916
6,912
3,002
54,000 ..............................................
11,357
7,120
3,103
57,000 ..............................................
11,798
7,328
3,204
60,000 ..............................................
12,239
7,535
3,305
63,000 ..............................................
12,680
7,742
3,406
156
Total number of Navy commissioned officers (ex-
cluding officers in categories specified in section
523(b) of title 10, United States Code) on active
duty
Number of officers who may be serving on active
duty in grade of
Lieutenant
Commander
Commander
Captain
66,000 ..............................................
13,121
7,949
3,506
70,000 ..............................................
13,709
8,226
3,641
90,000 ..............................................
16,649
9,608
4,313
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve com-
ponents as of September 30, 1996, as follows:
(1) The Army National Guard of the United
States, 373,000.
(2) The Army Reserve, 230,000.
(3) The Naval Reserve, 98,608.
(4) The Marine Corps Reserve, 42,000.
(5) The Air National Guard of the United
States, 109,458.
(6) The Air Force Reserve, 73,969.
(7) The Coast Guard Reserve, 8,000.
(b) WAIVER AUTHORITY.—The Secretary of Defense
may vary the end strength authorized by subsection (a) by
not more than 2 percent.
(c) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve compo-
nent shall be proportionately reduced by—
157
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of such
component which are on active duty (other than for
training) at the end of the fiscal year, and
(2) the total number of individual members not
in units organized to serve as units of the Selected
Reserve of such component who are on active duty
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end
strength prescribed for such fiscal year for the Selected Re-
serve of such reserve component shall be proportionately in-
creased by the total authorized strengths of such units and
by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
Within the end strengths prescribed in section 411(a),
the reserve components of the Armed Forces are authorized,
as of September 30, 1996 , the following number of Reserves
to be serving on full-time active duty or full-time duty, in
the case of members of the National Guard, for the purpose
of organizing, administering, recruiting, instructing, or
training the reserve components:
158
(1) The Army National Guard of the United
States, 23,390.
(2) The Army Reserve, 11,575.
(3) The Naval Reserve, 17,490.
(4) The Marine Corps Reserve, 2,285.
(5) The Air National Guard of the United
States, 9,817.
(6) The Air Force Reserve, 628.
SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PER-
SONNEL ASSIGNED IN SUPPORT OF RESERVE
COMPONENT TRAINING.
Section 414(c) of the National Defense Authorization
Act for Fiscal Years 1992 and 1993 (Public Law 102–190;
10 U.S.C. 12001 note) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’;
and
(2) by adding at the end the following new para-
graph:
‘‘(2) The Secretary of Defense may count toward the
number of active component personnel required under para-
graph (1) to be assigned to serve as advisers under the pro-
gram under this section any active component personnel
who are assigned to an active component unit (A) that was
established principally for the purpose of providing dedi-
cated training support to reserve component units, and (B)
159
the primary mission of which is to provide such dedicated
training support.’’.
Subtitle C—Military Training
Student Loads
SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.
(a) IN GENERAL.—For fiscal year 1996, the compo-
nents of the Armed Forces are authorized average military
training loads as follows:
(1) The Army, 75,013.
(2) The Navy, 44,238.
(3) The Marine Corps, 26,095.
(4) The Air Force, 33,232.
(b) SCOPE.—The average military training student
loads authorized for an armed force under subsection (a)
apply to the active and reserve components of that armed
force.
(c) ADJUSTMENTS.—The average military student
loads authorized in subsection (a) shall be adjusted consist-
ent with the end strengths authorized in subtitles A and
B. The Secretary of Defense shall prescribe the manner in
which such adjustments shall be apportioned.
160
Subtitle D—Authorization of
Appropriations
SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILI-
TARY PERSONNEL.
There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal year
1996 a total of $68,951,663,000. The authorization in the
preceding sentence supersedes any other authorization of
appropriations (definite or indefinite) for such purpose for
fiscal year 1996.
SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY
END STRENGTHS.
(a) AUTHORIZATION.—There is hereby authorized to be
appropriated to the Department of Defense for fiscal year
1996 for military personnel the sum of $112,000,000. Any
amount appropriated pursuant to this section shall be allo-
cated, in such manner as the Secretary of Defense pre-
scribes, among appropriations for active-component mili-
tary personnel for that fiscal year and shall be available
only to increase the number of members of the Armed Forces
on active duty during that fiscal year (compared to the
number of members that would be on active duty but for
such appropriation).
(b) EFFECT ON END STRENGTHS.—The end-strength
authorizations in section 401 shall each be deemed to be
161
increased by such number as necessary to take account of
additional members of the Armed Forces authorized by the
Secretary of Defense pursuant to subsection (a).
TITLE V—MILITARY PERSONNEL
POLICY
Subtitle A—Officer Personnel Policy
SEC. 501. AUTHORITY TO EXTEND TRANSITION PERIOD FOR
OFFICERS SELECTED FOR EARLY RETIRE-
MENT.
(a) SELECTIVE RETIREMENT
OF WARRANT OFFI-
CERS.—Section 581 of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(e) The Secretary concerned may defer for not more
than 90 days the retirement of an officer otherwise approved
for early retirement under this section in order to prevent
a personal hardship to the officer or for other humanitarian
reasons.’’.
(b) SELECTIVE EARLY RETIREMENT OF ACTIVE-DUTY
OFFICERS.—Section 638(b) of title 10, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(3) The Secretary concerned may defer for not more
than 90 days the retirement of an officer otherwise approved
for early retirement under this section or section 638a of
162
this title in order to prevent a personal hardship to the offi-
cer or for other humanitarian reasons.’’.
Subtitle B—Matters Relating to
Reserve Components
SEC. 511. MILITARY TECHNICIAN FULL-TIME SUPPORT PRO-
GRAM FOR ARMY AND AIR FORCE RESERVE
COMPONENTS.
(a) REQUIREMENT OF ANNUAL AUTHORIZATION OF
END STRENGTH.—(1) Section 115 of title 10, United States
Code, is amended by adding at the end the following new
subsection:
‘‘(g) Congress shall authorize for each fiscal year the
end strength for military technicians for each reserve com-
ponent of the Army and Air Force. Funds available to the
Department of Defense for any fiscal year may not be used
for the pay of a military technician during that fiscal year
unless the technician fills a position that is within the num-
ber of such positions authorized by law for that fiscal year
for the reserve component of that technician. This subsection
applies without regard to section 129 of this title.’’.
(2) The amendment made by paragraph (1) does not
apply with respect to fiscal year 1995.
(b) AUTHORIZATION FOR FISCAL YEARS 1996 AND
1997.—For each of fiscal years 1996 and 1997, the number
of military technicians, as of the last day of that fiscal year,
163
for the Army and the Air Force (notwithstanding section
129 of title 10, United States Code) may not exceed the fol-
lowing:
(1) Army National Guard, 25,500.
(2) Army Reserve, 6,630.
(3) Air National Guard, 22,906.
(4) Air Force Reserve, 9,802.
(c) ADMINISTRATION OF MILITARY TECHNICIAN PRO-
GRAM.—(1) Chapter 1007 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 10216. Military technicians
‘‘(a) PRIORITY FOR MANAGEMENT OF MILITARY TECH-
NICIANS.—(1) As a basis for making the annual request to
Congress pursuant to section 115 of this title for authoriza-
tion of end strengths for military technicians of the Army
and Air Force reserve components, the Secretary of Defense
shall give priority to supporting authorizations for dual
status military technicians in the following high-priority
units and organizations:
‘‘(A) Units of the Selected Reserve that are sched-
uled to deploy no later than 90 days after mobiliza-
tion.
‘‘(B) Units of the Selected Reserve that are or
will deploy to relieve active duty peacetime operations
tempo.
164
‘‘(C) Those organizations with the primary mis-
sion of providing direct support surface and aviation
maintenance for the reserve components of the Army
and Air Force, to the extent that the military techni-
cians in such units would mobilize and deploy in a
skill that is compatible with their civilian position
skill.
‘‘(2) For each fiscal year, the Secretary of Defense
shall, for the high-priority units and organizations referred
to in paragraph (1), achieve a programmed manning level
for military technicians that is not less than 90 percent
of the programmed manpower structure for those units and
organizations for military technicians for that fiscal year.
‘‘(3) For each fiscal year, the Secretary of Defense
shall, for reserve component management headquarters or-
ganizations (including national and State-level National
Guard headquarters, in United States Property and Fiscal
Offices, and in similar management-level headquarters in
the Army and Air Force Reserve), achieve a programmed
manning level for military technicians that is not more
than 70 percent of the programmed manpower structure for
those organizations for military technicians for that fiscal
year.
‘‘(4) Military technician authorizations and personnel
in high-priority units and organizations specified in para-
165
graph (1) shall be exempt from any requirement (imposed
by law or otherwise) for reductions in Department of De-
fense civilian personnel and shall only be reduced as part
of military force structure reductions. Planned reductions
in Department of Defense civilian personnel that would
apply to such technician authorizations and personnel but
for this paragraph shall be reallocated by the Secretary of
Defense on a proportional basis throughout the Department
of Defense, with an emphasis on reducing headquarters per-
sonnel.
‘‘(b) DUAL-STATUS REQUIREMENT.—The Secretary of
Defense shall require the Secretary of the Army and the Sec-
retary of the Air Force to establish as a condition of em-
ployment for each individual who is hired after the date
of the enactment of this section as a military technician
that the individual maintain membership in the Selected
Reserve (so as to be a so-called ‘dual-status’ technician) and
shall require that the civilian and military position skill
requirements of dual-status military technicians be compat-
ible. No Department of Defense funds may be spent for com-
pensation for any military technician hired after the date
of the enactment of this section who is not a member of
the Selected Reserve, except that compensation may be paid
for up to six months following loss of membership in the
166
selected reserve if such loss of membership was not due to
the failure to meet military standards.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘10216. Military technicians.’’.
(d) REVIEW OF RESERVE COMPONENT MANAGEMENT
HEADQUARTERS.—(1) The Secretary of Defense shall, with-
in six months after the date of the enactment of this Act,
undertake steps to reduce, consolidate, and streamline man-
agement headquarters operations of the reserve components.
As part of those steps, the Secretary shall identify those
military technicians positions in such headquarters oper-
ations that are excess to the requirements of those head-
quarters.
(2) Of the military technicians positions that are iden-
tified under paragraph (1), the Secretary shall reallocate
up to 95 percent of those positions to the high-priority units
and activities specified in section 10216(a) of title 10,
United States Code, as added by subsection (c).
(e) ANNUAL DEFENSE MANPOWER REQUIREMENTS
REPORT.—Section 115a of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(h) In each such report, the Secretary shall include
a separate report on the Army and Air Force military tech-
nician programs. The report shall include a presentation,
shown by reserve component and shown both as of the end
167
of the preceding fiscal year and for the next fiscal year,
of the following:
‘‘(1) The number of military technicians re-
quired to be employed (as specified in accordance
with Department of Defense procedures), the number
authorized to be employed under Department of De-
fense personnel procedures, and the number actually
employed.
‘‘(2) Within each of the numbers under para-
graph (1)—
‘‘(A) the number applicable to a reserve
component management headquarter organiza-
tion; and
‘‘(B) the number applicable to high-priority
units and organizations (as specified in section
10216(a) of this title).
‘‘(3) Within each of the numbers under para-
graph (1), the numbers of military technicians who
are not themselves members of a reserve component
(so-called ‘single-status’ technicians), with a further
display of such numbers as specified in paragraph
(2).’’.
168
SEC. 512. MILITARY LEAVE FOR MILITARY RESERVE TECH-
NICIANS FOR CERTAIN DUTY OVERSEAS.
Section 6323 of title 5, United States Code is amended
by adding at the end the following new subsection:
‘‘(d)(1) A military reserve technician described in sec-
tion 8401(30) is entitled at such person’s request to leave
without loss of, or reduction in, pay, leave to which such
person is otherwise entitled, credit for time or service, or
performance or efficiency rating for each day, not to exceed
44 workdays in a calendar year, in which such person is
on active duty without pay, as authorized pursuant to sec-
tion 12315 of title 10, under section 12301(b) or 12301(d)
of title 10 (other than active duty during a war or national
emergency declared by the President or Congress) for par-
ticipation in noncombat operations outside the United
States, its territories and possessions.
‘‘(2) An employee who requests annual leave or com-
pensatory time to which the employee is otherwise entitled,
for a period during which the employee would have been
entitled upon request to leave under this subsection, may
be granted such annual leave or compensatory time without
regard to this section or section 5519.’’.
169
SEC. 513. REVISIONS TO ARMY GUARD COMBAT REFORM
INITIATIVE 
TO 
INCLUDE 
ARMY 
RESERVE
UNDER CERTAIN PROVISIONS AND MAKE
CERTAIN REVISIONS.
(a) PRIOR ACTIVE DUTY PERSONNEL.—Section 1111
of the Army National Guard Combat Readiness Reform Act
of 1992 (title XI of Public Law 102–484) is amended—
(1) in the section heading, by striking out the
first three words;
(2) by striking out subsections (a) and (b) and
inserting in lieu thereof the following:
‘‘(a) ADDITIONAL PRIOR ACTIVE DUTY OFFICERS.—
The Secretary of the Army shall increase the number of
qualified prior active-duty officers in the Army National
Guard by providing a program that permits the separation
of officers on active duty with at least two, but less than
three, years of active service upon condition that the officer
is accepted for appointment in the Army National Guard.
The Secretary shall have a goal of having not fewer than
150 officers become members of the Army National Guard
each year under this section.
‘‘(b) ADDITIONAL PRIOR ACTIVE DUTY ENLISTED
MEMBERS.—The Secretary of the Army shall increase the
number of qualified prior active-duty enlisted members in
the Army National Guard through the use of enlistments
as described in section 8020 of the Department of Defense
170
Appropriations Act, 1994 (Public Law 103–139). The Sec-
retary shall enlist not fewer than 1,000 new enlisted mem-
bers each year under enlistments described in that section.’’;
and
(3) by striking out subsections (d) and (e).
(b) SERVICE IN THE SELECTED RESERVE IN LIEU OF
ACTIVE DUTY SERVICE FOR ROTC GRADUATES.—Section
1112(b) of such Act (106 Stat. 2537) is amended by striking
out ‘‘National Guard’’ before the period at the end and in-
serting in lieu thereof ‘‘Selected Reserve’’.
(c) REVIEW OF OFFICER PROMOTIONS.—Section 1113
of such Act (106 Stat. 2537) is amended—
(1) in subsection (a), by striking out ‘‘National
Guard’’ both places it appears and inserting in lieu
thereof ‘‘Selected Reserve’’;
(2) by striking out subsection (b) and inserting
in lieu thereof the following:
‘‘(b) COVERAGE OF SELECTED RESERVE COMBAT AND
EARLY DEPLOYING UNITS.—(1) Subsection (a) applies to
officers in all units of the Selected Reserve that are des-
ignated as combat units or that are designated for deploy-
ment within 75 days of mobilization.
‘‘(2) Subsection (a) shall take effect with respect to offi-
cers of the Army Reserve, and with respect to officers of
the Army National Guard in units not subject to subsection
171
(a) as of the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1996, at the end of the
90-day period beginning on such date of enactment.’’.
(d) INITIAL ENTRY TRAINING AND NONDEPLOYABLE
PERSONNEL.—Section 1115 of such Act (106 Stat. 2538)
is amended—
(1) in subsections (a) and (b), by striking out
‘‘National Guard’’ each place it appears and insert-
ing in lieu thereof ‘‘Selected Reserve’’; and
(2) in subsection (c)—
(A) by striking out ‘‘a member of the Army
National Guard enters the National Guard’’ and
inserting in lieu thereof ‘‘a member of the Army
Selected Reserve enters the Army Selected Re-
serve’’; and
(B) by striking out ‘‘from the Army Na-
tional Guard’’.
(e) ACCOUNTING OF MEMBERS WHO FAIL PHYSICAL
DEPLOYABILITY STANDARDS.—Section 1116 of such Act
(106 Stat. 2539) is amended by striking out ‘‘National
Guard’’ each place it appears and inserting in lieu thereof
‘‘Selected Reserve’’.
(f) USE OF COMBAT SIMULATORS.—Section 1120 of
such Act (106 Stat. 2539) is amended by inserting ‘‘and
the Army Reserve’’ before the period at the end.
172
SEC. 514. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.
(a) CLARIFICATION
OF
RESTRICTION
ON
ACTIVE
DUTY.—Paragraph (2) of section 2107(h) of title 10, United
States Code, is amended by inserting ‘‘full-time’’ before ‘‘ac-
tive duty’’ in the second sentence.
(b) REDESIGNATION OF ROTC SCHOLARSHIPS.—Such
paragraph is further amended by inserting after the first
sentence the following new sentence: ‘‘A cadet designated
under this paragraph who, having initially contracted for
service as provided in subsection (b)(5)(A) and having re-
ceived financial assistance for two years under an award
providing for four years of financial assistance under this
section, modifies such contract with the consent of the Sec-
retary of the Army to provide for service as described in
subsection (b)(5)(B), may be counted, for the year in which
the contract is modified, toward the number of appoint-
ments required under the preceding sentence for financial
assistance awarded for a period of four years.’’.
SEC. 515. REPORT ON FEASIBILITY OF PROVIDING EDU-
CATION BENEFITS PROTECTION INSURANCE
FOR SERVICE ACADEMY AND ROTC SCHOLAR-
SHIP STUDENTS WHO BECOME MEDICALLY
UNABLE TO SERVE.
Not later than June 30, 1996, the Secretary of Defense
shall submit to Congress a report on the desirability and
the feasibility of the establishment of an insurance program,
173
to operate at no cost to the Government, to insure individ-
uals who are cadets or midshipmen at one of the service
academies or who hold Reserve Officer Training Corps
scholarships under section 2107 or 2107a of title 10, United
States Code, against the loss of the value of attendance at
such service academy (in terms of the cost of education at
another institution), or the value of the scholarship, in cases
in which such attendance or such scholarship is terminated
by the Secretary of the military department concerned be-
cause the individual has become, through no fault of the
individual, medically disqualified from military service.
SEC. 516. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY
AT SENIOR MILITARY COLLEGES TO SERVE AS
COMMANDANT 
AND 
ASSISTANT 
COM-
MANDANT OF CADETS AND AS TACTICAL OF-
FICERS.
(a) IN GENERAL.—Chapter 103 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 2111a. Detail of officers to senior military colleges
‘‘(a) DETAIL
OF OFFICERS TO SERVE
AS COM-
MANDANT OR ASSISTANT COMMANDANT OF CADETS.—(1)
Upon the request of a senior military college, the Secretary
of Defense shall detail an officer on the active-duty list to
serve as Commandant of Cadets at that college or (in the
174
case of a college with an Assistant Commandant of Cadets)
detail an officer on the active-duty list to serve as Assistant
Commandant of Cadets at that college (but not both).
‘‘(2) In the case of an officer detailed as Commandant
of Cadets, the officer may, upon the request of the college,
be assigned from among the Professor of Military Science,
the Professor of Naval Science (if any), and the Professor
of Aerospace Science (if any) at that college or may be in
addition to any other officer detailed to that college in sup-
port of the program.
‘‘(3) In the case of an officer detailed as Assistant
Commandant of Cadets, the officer may, upon the request
of the college, be assigned from among officers otherwise de-
tailed to duty at that college in support of the program or
may be in addition to any other officer detailed to that col-
lege in support of the program.
‘‘(b) DESIGNATION OF OFFICERS AS TACTICAL OFFI-
CERS.—Upon the request of a senior military college, the
Secretary of Defense shall authorize officers (other than offi-
cers covered by subsection (a)) who are detailed to duty as
instructors at that college to act simultaneously as tactical
officers (with or without compensation) for the Corps of Ca-
dets at that college.
‘‘(c) DETAIL OF OFFICERS.—The Secretary of a mili-
tary department shall designate officers for detail to the
175
program at a senior military college in accordance with
criteria provided by the college. An officer may not be de-
tailed to a senior military college without the approval of
that college.
‘‘(d) SENIOR MILITARY COLLEGES.—The senior mili-
tary colleges are the following:
‘‘(1) Texas A&M University.
‘‘(2) Norwich College.
‘‘(3) The Virginia Military Institute.
‘‘(4) The Citadel.
‘‘(5) Virginia Polytechnic Institute and State
University.
‘‘(6) North Georgia College.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘2111a. Detail of officers to senior military colleges.’’.
SEC. 517. MOBILIZATION INCOME INSURANCE PROGRAM
FOR MEMBERS OF READY RESERVE.
(a) ESTABLISHMENT OF PROGRAM.—(1) Subtitle E of
title 10, United States Code, is amended by inserting after
chapter 1213 the following new chapter:
‘‘CHAPTER 1214—READY RESERVE INCOME
INSURANCE
‘‘Sec.
‘‘12521. Definitions.
‘‘12522. Establishment and purpose of program.
176
‘‘12523. Program administration.
‘‘12524. Eligible insurance companies.
‘‘12525. Persons insured; amount.
‘‘12526. Deductions; payment.
‘‘12527. Payment of insurance; beneficiaries.
‘‘12528. Premiums; accounting to the Secretary.
‘‘12529. Forfeiture.
‘‘§ 12521. Definitions
‘‘In this chapter:
‘‘(1) The term ‘covered service’ means active duty
in the armed forces performed by a member of a re-
serve component under orders for more than 30 days
which specify that the member’s service is in support
of an operational mission for which members of the
reserve components have been ordered to active duty
without their consent or in support of forces activated
during a period of war or during a period of national
emergency as declared by the President or Congress.
‘‘(2) The term ‘covered member’ means a member
of the Ready Reserve who is eligible for and who has
not declined coverage under this chapter.
‘‘(3) The term ‘Secretary’ means the Secretary of
Defense.
‘‘(4) The term ‘Department’ means the Depart-
ment of Defense.
‘‘(5) The term ‘Board’ means the Board of Actu-
aries established under section 2006(e)(1) of this title.
‘‘(6) The term ‘Fund’ means the Department of
Defense Ready Reserve Income Insurance Fund.
177
‘‘§ 12522. Establishment and purpose of program
‘‘(a) ESTABLISHMENT.—There is established an insur-
ance program for members of the Ready Reserve to be
known as the Department of Defense Ready Reserve Income
Insurance Program which shall be administered by the Sec-
retary. There is also established on the books of the Treasury
a fund to be known as the Department of Defense Ready
Reserve Income Insurance Fund, which shall be adminis-
tered by the Secretary of the Treasury. The Fund shall be
used for the accumulation of funds in order to finance on
an actuarially sound basis liabilities of the Program.
‘‘(b) ASSETS OF FUND.—There shall be deposited into
the Fund the following, which shall constitute the assets of
the Fund:
‘‘(1) Amounts paid into the Fund under sections
12526 and 12528 of this title.
‘‘(2) Any amount appropriated to the Fund.
‘‘(3) Any return on investment of the assets of
the Fund.
‘‘(c) BOARD OF ACTUARIES.—The Department of De-
fense Education Benefits Fund Board of Actuaries shall
have the actuarial responsibility for the Program.
‘‘(d) DETERMINATION
OF CONTRIBUTIONS
TO
THE
FUND.—(1) Not later than six months after the Program
is established, the Board shall determine (project) the pre-
mium rate for the coverage to be offered.
178
‘‘(2) If at the time of any such valuation there has
been a change in benefits under the Program that has been
made since the last such valuation and such change in bene-
fits increases or decreases the present value of amounts pay-
able from the Fund, the Board shall determine a premium
rate methodology and schedule for the liquidation of any
liability (or actuarial gain to the Fund) created by such
change and any previous such changes so that the present
value of the sum of the scheduled premium payments (or
reduction in payments that would otherwise be made)
equals the cumulative increase (or decrease) in the present
value of such benefits.
‘‘(3) If at the time of any such valuation the Board
determines that, based upon changes in actuarial assump-
tions since the last valuation, there has been an actuarial
gain or loss to the Fund, the Board shall recommend a pre-
mium rate schedule for the amortization of the cumulative
gain or loss to the Fund created by such change in assump-
tions and any previous such changes in assumptions
through an increase or decrease in the payments that would
otherwise be made to the Fund.
‘‘(4) If at any time liabilities exceed assets of the Fund
as a result of a call up, and funds are unavailable to pay
benefits, the Secretary shall seek a special appropriation to
cover the unfunded liability. If appropriations are not
179
made, in any fiscal year, the Secretary shall limit the value
of any benefits conferred by this program to an amount
that does not exceed assets of the Fund expected to accrue
at the end of such fiscal year. Benefits that cannot be paid
because of such limitation of funds shall be deferred and
paid only after funds become available.
‘‘(e) PAYMENTS INTO THE FUND.—(1) Payment into
the Fund under this subsection shall accumulate in accord-
ance with the provisions of section 12526 of this title.
‘‘(2) At the beginning of each fiscal year, the Secretary
shall determine the sum of the following:
‘‘(A) The projected amount of the premiums to be
collected, investment earnings, and any special appro-
priations received for that fiscal year.
‘‘(B) The amount for that year of any cumu-
lative unfunded liability (including any negative
amount or any gain to the Fund) resulting from pay-
ments of benefits.
‘‘(C) The amount for that year (including any
negative amount) of any cumulative actuarial gain or
loss to the Fund.
‘‘(f) INVESTMENT OF ASSETS OF FUND.—The Sec-
retary of the Treasury shall invest such portion of the Fund
as is not in the judgment of the Secretary of Defense re-
quired to meet current liabilities. Such investments shall
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be in public debt securities with maturities suitable to the
needs of the Fund, as determined by the Secretary of De-
fense, and bearing interest at rates determined by the Sec-
retary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the
United States of comparable maturities. The income on
such investments shall be credited to and form a part of
the Fund.
‘‘§ 12523. Program administration
‘‘The insurance program provided for in this chapter
shall be administered by the Secretary, who is authorized
to adopt such rules, procedures, and policies as in the Sec-
retary’s judgment may be necessary or appropriate to carry
out the purposes of this chapter.
‘‘§ 12524. Eligible insurance companies
‘‘(a) The Secretary may, without regard to section
3709 of the Revised Statutes (41 U.S.C. 5), purchase from
one or more insurance companies a policy or policies of
group insurance to offer benefits to all members. Each such
insurance company shall (1) be licensed to issue insurance
in each of the 50 States and in the District of Columbia,
and (2) as of the most recent December 31 for which infor-
mation is available to the Secretary, have in effect at least
1 percent of the total amount of insurance which all such
insurance companies have in effect in the United States.
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‘‘(b) Any insurance company which issues a policy
under subsection (a) shall establish an administrative office
at a place and under a name designated by the Secretary.
‘‘(c) The Secretary may use the facilities and services
of any insurance company issuing any policy under this
chapter and may designate one such company as the rep-
resentative of the other companies and contract to pay a
reasonable fee to the designated company for its services.
‘‘(d) The Secretary shall arrange with the insurance
company issuing any policy under this chapter to reinsure,
under conditions approved by the Secretary, portions of the
total amount of insurance under such policy or policies
with such other insurance companies (which meet qualify-
ing criteria set forth by the Secretary) as may elect to par-
ticipate in such reinsurance.
‘‘(e) The Secretary may at any time discontinue any
policy purchased under this section.
‘‘§ 12525. Persons insured; amount
‘‘(a)(1) Any policy of insurance provided under this
chapter shall insure each covered member of the Ready Re-
serve against covered service. Any covered member ordered
into covered service shall be entitled to payment of a basic
benefit of $1,000 for each month of covered service which
is in excess of the initial 30 days of covered service, unless
the member has elected in writing (A) not to be insured
182
under this chapter, (B) to be insured for a lower benefit
of half the basic benefit, or (C) to be insured in a greater
amount, in increments of $500, above the basic benefit not
to exceed $5,000 per month of covered service (adjusted pur-
suant to paragraph (2)), following the initial 30 days of
covered service, except that no member may be paid under
this chapter for more than 12 months of covered service
served during any period of 18 months. Payment for any
period of covered service less than one month shall be at
the rate of one-thirtieth of the monthly rate for each day
served. Payment shall be based solely on insured status and
on the period of covered service served; no proof of lost in-
come or expenses incurred as a result of covered service shall
be required.
‘‘(2) The Secretary shall determine annually the effect
of inflation on the benefits and establish an adjustment rate
which ensures that there is no loss of value in the benefits
payable to a member. Adjustments shall apply to benefits
for members with existing coverage and for newly eligible
members. Such adjustments for inflation will be rounded
to the nearest $10 increment.
‘‘(3) Members of the Ready Reserve who, under regula-
tions prescribed by the Secretary of Defense in coordination
with the Secretary of Transportation, are serving on active
duty (or full-time National Guard duty) shall not be eligible
183
to purchase insurance under this chapter. Additional cat-
egories of members of the Ready Reserve, in the discretion
of the Secretary of Defense, may also be excluded from eligi-
bility to purchase insurance under this chapter.
‘‘(b) Promptly following the effective date of this chap-
ter, the Secretary shall make a one-time offer of insurance
coverage under this chapter to all persons who were mem-
bers of the Ready Reserve of an armed force on that date
and who remain members of the Ready Reserve. Members
of the Ready Reserve, first becoming eligible for coverage
after the effective date of this chapter, shall be automatically
enrolled for the basic benefit unless declined, or another
amount is elected under subsection (a)(1).
‘‘(c) Members shall be given a written explanation of
the insurance and be advised that they have the right (1)
to decline coverage altogether, (2) to select half the basic
benefit, or (3) to select increased benefits. The right of a
member of the Ready Reserve to decline, increase, or de-
crease coverage shall be exercised within 30 days of first
being eligible for coverage.
‘‘§ 12526. Deductions; payment
‘‘(a)(1) During any period in which a member insured
under this chapter is participating in paid reserve training
or other duty, there shall be deducted each month from the
member’s basic pay or compensation for inactive duty
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training an amount determined by the Secretary to be the
same for all members of the Ready Reserve who subscribe
to the same amount of insurance as the share of the cost
attributable to insuring such member. As provided in sec-
tion 12525 of this title, the Secretary may establish grad-
uated monthly premiums for an amount of insurance less
than the basic amount of coverage or in excess of the basic
coverage amount.
‘‘(2) Any member insured under this chapter who is
not in a pay status in which the member receives pay on
a monthly basis shall pay the cost attributable to insuring
such member in accordance with regulations to be adopted
by the Secretary.
‘‘(b) An amount equal to the first amount due on in-
surance under this chapter may be advanced from current
appropriations for military pay to any such member, which
amount shall constitute a lien upon the pay for military
service accruing to the person to whom such advance was
made, and shall be collected therefrom if not otherwise paid.
No disbursing or certifying officer shall be responsible for
any loss by reason of such advance.
‘‘(c) The sums withheld from the basic or other pay
of insured members or deposited by insured members, to-
gether with the income derived from any dividends or pre-
mium rate adjustments, shall be deposited to the credit of
185
the Fund. All premium payments for insurance issued
under this chapter shall be deposited into the Fund.
‘‘§ 12527. Payment of insurance; beneficiaries
‘‘(a) A member insured under this chapter who serves
in excess of 30 days of covered service shall be paid the
amount to which such member is entitled on a monthly
basis, with the first payment due no later than one month
following the 30th day of covered service. The Secretary
shall adopt regulations prescribing the manner in which
payments shall be made, either to the member or, in accord-
ance with subsection (d), to a designated person or entity.
‘‘(b) A member may designate in writing another per-
son (including a spouse, parent, or other person with an
insurable interest as determined by the Secretary by regula-
tion) to whom the insurance payments to which such mem-
ber is entitled are to be paid. Such designation may be
made to a bank or other financial institution, to the credit
of a designated person. In the latter event, insurance pay-
ments to which a member becomes entitled shall be paid
to the designated person, bank or financial institution.
‘‘(c) Any amount of insurance payable under this
chapter on account of a deceased member’s period of covered
service shall be paid, upon the establishment of a valid
claim therefor, to the beneficiary or beneficiaries which the
former member had designated in writing. If no such des-
186
ignation has been made, the amount shall be payable in
accordance with the laws of the State of the member’s domi-
cile.
‘‘§ 12528. Premiums; accounting to the Secretary
‘‘(a) Each policy of insurance provided by the Sec-
retary under this chapter shall include for the first policy
years a fixed monetary premium per $1,000 of insurance,
based, in consultation with the Board, on the best available
estimate of risk and financial exposure, levels of subscrip-
tion by members, and other relevant factors. Different pre-
mium levels may be established for different amounts of cov-
erage, provided that the premium rate established for the
basic benefit shall not be at a premium rate higher than
the premium rate set for increased coverages.
‘‘(b) Each policy shall include provisions whereby the
premium rate for the first policy year shall be continued
for subsequent policy years (but the premium amount may
be increased to account or inflation-adjusted benefit in-
creases). The rate may be readjusted for any subsequent
year with the consent of the Secretary based on prior con-
sultation with the Board of Actuaries.
‘‘§ 12529. Forfeiture
‘‘Any person found guilty of mutiny, treason, spying,
or desertion, or who refuses to perform service in the armed
forces or refuses to wear the uniform of any of the armed
187
forces, shall forfeit all rights to insurance under this chap-
ter.’’.
(2) The tables of chapters at the beginning of subtitle
E, and at the beginning of part II of subtitle E, of title
10, United States Code, are amended by inserting after the
item relating to chapter 1213 the following new item:
‘‘1214. Ready Reserve Income Insurance ......................................12521’’.
(b) EFFECTIVE DATE.—The insurance program pro-
vided for in chapter 1218 of title 10, United States Code,
as added by subsection (a), and the deductions and con-
tributions for that program shall take effect on a date des-
ignated by the Secretary. Such date may not be later than
September 30, 1996. The Secretary shall publish in the Fed-
eral Register notice of such effective date.
SEC. 518. DELAY IN REORGANIZATION OF ARMY ROTC RE-
GIONAL HEADQUARTERS STRUCTURE.
(a) DELAY.—The Secretary of the Army may not take
any action to reorganize the regional headquarters and
basic camp structure of the Reserve Officers Training Corps
program of the Army until six months after the date on
which the report required by subsection (d) is submitted.
(b) COST-BENEFIT ANALYSIS.—The Secretary of the
Army shall conduct a comparative cost-benefit analysis of
various options for the reorganization of the regional head-
quarters and basic camp structure of the Army ROTC pro-
gram. As part of such analysis, the Secretary shall measure
188
each reorganization option considered against a common
set of criteria.
(c) SELECTION OF REORGANIZATION OPTION FOR IM-
PLEMENTATION.—Based on the findings resulting from the
cost-benefit analysis under subsection (b) and such other
factors as the Secretary considers appropriate, the Sec-
retary shall select one reorganization option for implemen-
tation. The Secretary may select an option for implementa-
tion only if the Secretary finds that the cost-benefit analysis
and other factors considered clearly demonstrate that such
option, better than any other option considered—
(1) provides the structure to meet projected mis-
sion requirements;
(2) achieves the most significant personnel and
cost savings;
(3) uses existing basic and advanced camp facili-
ties to the maximum extent possible;
(4) minimizes additional military construction
costs; and
(5) makes maximum use of the reserve compo-
nents to support basic and advanced camp oper-
ations, thereby minimizing the effect of those oper-
ations on active duty units.
(d) REPORT.—Not later than 60 days after the date
of the enactment of this Act, the Secretary of the Army shall
189
submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives a report describing the reorganization op-
tion selected under subsection (c). The report shall include
the results of the cost-benefit analysis under subsection (b)
and a detailed rationale for the reorganization option se-
lected.
Subtitle C—Matters Relating to
Force Levels
SEC. 521. FLOOR ON END STRENGTHS.
(a) IN GENERAL.—Chapter 39 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 691. Permanent end strength levels to support two
major regional contingencies
‘‘(a) The end strengths specified in subsection (b) are
the minimum strengths necessary to enable the armed forces
to fulfill a national defense strategy calling for the United
States to be able to successfully conduct two nearly simulta-
neous major regional contingencies.
‘‘(b) Unless otherwise provided by law, the number of
members of the armed forces (other than the Coast Guard)
on active duty at the end of any fiscal year shall be not
less than the following:
‘‘(1) For the Army, 495,000.
190
‘‘(2) For the Navy, 395,000.
‘‘(3) For the Marine Corps, 174,000.
‘‘(4) For the Air Force, 381,000.
‘‘(c) No funds appropriated to the Department of De-
fense may be used to reduce the active duty end strengths
for the armed forces below the levels specified in subsection
(b) unless the Secretary of Defense submits to Congress no-
tice of the proposed lower end strength levels and a justifica-
tion for those levels. No action may then be taken to reduce
such end strengths below the levels specified in subsection
(b) until the end of the six-month period beginning on the
date of the submission of such notification to Congress.
‘‘(d) The number of members of the armed forces on
active duty shall be counted for purposes of this section in
the same manner as applies under section 115(a)(1) of this
title.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘691. Permanent end strength levels to support two major regional contin-
gencies.’’.
SEC. 522. ARMY OFFICER MANNING LEVELS.
(a) IN GENERAL.—(1) Chapter 331 of title 10, United
States Code, is amended by inserting after the table of sec-
tions the following new section:
191
‘‘§ 3201. Officers on active duty: minimum strength
based on requirements
‘‘(a) The Secretary of the Army shall ensure that (be-
ginning with fiscal year 1999) the strength at the end of
each fiscal year of officers on active duty is sufficient to
enable the Army to meet at least 90 percent of the pro-
grammed manpower structure for the active component of
the Army.
‘‘(b) The number of officers on active duty shall be
counted for purposes of this section in the same manner
as applies under section 115(a)(1) of this title.
‘‘(c) In this section:
‘‘(1) The term ‘programmed manpower structure’
means the aggregation of billets describing the full
manpower requirements for units and organizations
in the programmed force structure.
‘‘(2) The term ‘programmed force structure’
means the set of units and organizations that exist in
the current year and that is planned to exist in each
future year under the then-current Future-Years De-
fense Program.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after ‘‘Sec.’’ the following new
item:
‘‘3201. Officers on active duty: minimum strength based on requirements.’’.
192
(b) ASSISTANCE IN ACCOMPLISHING REQUIREMENT.—
The Secretary of Defense shall provide to the Army suffi-
cient personnel and financial resources (including resources
from outside Army accounts) to enable the Army to meet
the requirement specified in section 3201 of title 10, United
States Code, as added by subsection (a).
SEC. 523. COMPTROLLER GENERAL REVIEW OF PROPOSED
ARMY END STRENGTH ALLOCATIONS.
(a) IN GENERAL.—During fiscal years 1996 through
2001, the Comptroller General of the United States shall
analyze the plans of the Secretary of the Army for the allo-
cation of assigned active component end strengths for the
Army through the requirements process known as Total
Army Analysis 2003 and through any subsequent similar
requirements process of the Army that is conducted before
2002. The Comptroller General’s analysis shall consider
whether the proposed active component end strengths and
planned allocation of forces for that period will be sufficient
to implement the national military strategy. In monitoring
those plans, the Comptroller General shall determine the ex-
tent to which the Army will be able during that period—
(1) to man fully the combat force based on the
projected active component Army end strength for
each of fiscal years 1996 through 2001;
193
(2) to meet the support requirements for the force
and strategy specified in the report of the Bottom-Up
Review, including requirements for operations other
than war; and
(3) to streamline further Army infrastructure in
order to eliminate duplication and inefficiencies and
replace active duty personnel in overhead positions,
whenever practicable, with civilian or reserve person-
nel.
(b) ACCESS TO DOCUMENTS, ETC.—The Secretary of
the Army shall ensure that the Comptroller General is pro-
vided access, on a timely basis and in accordance with the
needs of the Comptroller General, to all analyses, models,
memoranda, reports, and other documents prepared or used
in connection with the requirements process of the Army
known as Total Army Analysis 2003 and any subsequent
similar requirements process of the Army that is conducted
before 2002.
(c) ANNUAL REPORT.—Not later than March 1 of each
year through 2002, the Comptroller General shall submit
to Congress a report on the findings and conclusions of the
Comptroller General under this section.
194
SEC. 524. MANNING STATUS OF HIGHLY DEPLOYABLE SUP-
PORT UNITS.
Not later than September 30, 1996, the Secretary of
each military department shall submit to the Committee on
Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives a report on
the units under that Secretary’s jurisdiction that (as deter-
mined by the Secretary) are high-priority support units
that would deploy early in a contingency operation or other
crisis and that are, as a matter of policy, managed at less
than 100 percent of their authorized strengths. The Sec-
retary shall include in the report the number of such high-
priority support units (shown by type of unit), the level
of manning within such high-priority support units, and
either the justification for manning of less than 100 percent
or the status of corrective action.
SEC. 525. SENSE OF CONGRESS CONCERNING PERSONNEL
TEMPO RATES.
(a) FINDINGS.—Congress makes the following findings:
(1) Excessively high personnel tempo rates for
members of the Armed Forces resulting from high-
tempo unit operations degrades unit readiness and
morale and eventually can be expected to adversely af-
fect unit retention.
195
(2) The Armed Forces have begun to develop
methods to measure and manage personnel tempo
rates.
(3) The Armed Forces have attempted to reduce
operations and personnel tempo for heavily tasked
units by employing alternative capabilities and re-
ducing tasking requirements.
(b) SENSE OF CONGRESS.—The Secretary of Defense
should continue to enhance the knowledge within the Armed
Forces of personnel tempo and to improve the techniques
by which personnel tempo is managed with a view toward
establishing and achieving reasonable personnel tempo
standards for all personnel, regardless of unit or assign-
ment.
Subtitle D—Amendments to the
Uniform Code of Military Justice
SEC. 541. REFERENCES TO UNIFORM CODE OF MILITARY
JUSTICE.
Except as otherwise expressly provided, whenever in
this subtitle an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a section
or other provision of chapter 47 of title 10, United States
Code (the Uniform Code of Military Justice).
196
SEC. 542. FORFEITURE OF PAY AND ALLOWANCES DURING
CONFINEMENT BY SENTENCE OF COURT-MAR-
TIAL.
(a) FORFEITURE.—(1) Subchapter VIII is amended by
inserting after section 857 (article 57) the following new
section (article):
‘‘§ 857a. Art. 57a. Sentences: forfeiture of pay and al-
lowances during confinement by sentence
of court-martial
‘‘(a) A court-martial sentence, as announced by the
sentencing authority, that includes confinement shall result
in the forfeiture of pay and allowances due that member
during the period of the confinement or while on parole.
The forfeiture shall be effective on the date on which the
sentence is announced. The percentage of pay and allow-
ances forfeited shall be the maximum percentage that the
court-martial could have directed as part of the sentence.
‘‘(b) If the sentence of a member who forfeits pay and
allowances under subsection (a) is set aside or disapproved
or, as finally approved, does not provide for confinement,
the member shall be paid the pay and allowances which
the member would have been paid, but for the forfeiture,
for the period during which the forfeiture was in effect.’’.