Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 1999’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows:
(1) Division A—Department of Defense Au-
thorizations.
(2) Division B—Military Construction Author-
izations.
(3) Division C—Department of Energy Na-
tional Security Authorizations and Other Authoriza-
tions.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
DIVISION A—DEPARTMENT OF DEFENSE
AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of Appropriations
Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.
Subtitle B—Army Programs
Sec. 111. Multiyear procurement authority for Longbow Hellfire missile pro-
gram.
Sec. 112. M1A2 System Enhancement Program Step 1 Program.
Subtitle C—Navy Programs
Sec. 121. Multiyear procurement authority for the Department of the Navy.
Subtitle D—Other Matters
Sec. 141. Alternative technologies for destruction of assembled chemical weap-
ons.
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION
Subtitle A—Authorization of Appropriations
Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Subtitle B—Program Requirements, Restrictions, and
Limitations
Sec. 211. Management responsibility for Navy mine countermeasures programs.
Sec. 212. Future aircraft carrier transition technologies.
Sec. 213. Manufacturing technology program.
Sec. 214. Science and technology functions of the Department of Defense.
Sec. 215. Next generation internet program.
Subtitle C—Ballistic Missile Defense
Sec. 231. National Missile Defense policy.
Sec. 232. Limitation on funding for the Medium Extended Air Defense System.
Sec. 233. Limitation on funding for cooperative ballistic missile defense pro-
grams.
Sec. 234. Limitation on funding for counterproliferation support.
Sec. 235. Ballistic Missile Defense program elements.
Sec. 236. Restructuring of theater high-altitude area defense system acquisition
strategy.
TITLE III—OPERATION AND MAINTENANCE
Subtitle A—Authorization of Appropriations
Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Refurbishment of M1–A1 tanks.
Sec. 306. Operation of prepositioned fleet, National Training Center, Fort
Irwin, California.
Sec. 307. Relocation of USS WISCONSIN.
Sec. 308. Fisher House Trust Funds.
Subtitle B—Information Technology Issues
Sec. 311. Additional information technology responsibilities of Chief Informa-
tion Officers.
Sec. 312. Defense-wide electronic mall system for supply purchases.
Sec. 313. Protection of funding provided for certain information technology and
national security programs.
Sec. 314. Priority funding to ensure year 2000 compliance of mission critical
information technology and national security systems.
Sec. 315. Evaluation of year 2000 compliance as part of training exercises pro-
grams.
Subtitle C—Environmental Provisions
Sec. 321. Authorization to pay negotiated settlement for environmental cleanup
at former Department of Defense sites in Canada.
Sec. 322. Removal of underground storage tanks.
Subtitle D—Defense Infrastructure Support Improvement
Sec. 331. Reporting and study requirements before change of commercial and
industrial type functions to contractor performance.
Sec. 332. Clarification of requirement to maintain Government-owned and Gov-
ernment-operated core logistics capability.
Sec. 333. Oversight of development and implementation of automated identi-
fication technology.
Sec. 334. Conditions on expansion of functions performed under prime vendor
contracts.
Sec. 335. Clarification of definition of depot-level maintenance and repair.
Sec. 336. Clarification of commercial item exception to requirements regarding
core logistics capabilities.
Sec. 337. Development of plan for establishment of core logistics capabilities for
maintenance and repair of C–17 aircraft.
Sec. 338. Contractor-operated civil engineering supply stores program.
Sec. 339. Report on savings and effect of personnel reductions in Army Mate-
riel Command.
Sec. 340. Best commercial inventory practices for management of secondary
supply items.
Subtitle E—Commissaries and Nonappropriated Fund
Instrumentalities
Sec. 341. Continuation of management and funding of Defense Commissary
Agency through the Office of the Secretary of Defense.
Sec. 342. Expansion of current eligibility of Reserves for commissary benefits.
Sec. 343. Repeal of requirement for Air Force to sell tobacco products to en-
listed personnel.
Sec. 344. Restrictions on patron access to, and purchases in, overseas com-
missaries and exchange stores.
Sec. 345. Extension of demonstration project for uniform funding of morale,
welfare, and recreation activities.
Sec. 346. Prohibition on consolidation or other organizational changes of De-
partment of Defense retail systems.
Sec. 347. Authorized use of appropriated funds for relocation of Navy Ex-
change Service Command.
Sec. 348. Evaluation of merit of selling malt beverages and wine in commissary
stores as exchange system merchandise.
Subtitle F—Other Matters
Sec. 361. Eligibility requirements for attendance at Department of Defense do-
mestic dependent elementary and secondary schools.
Sec. 362. Specific emphasis of program to investigate fraud, waste, and abuse
within Department of Defense.
Sec. 363. Revision of inspection requirements relating to Armed Forces Retire-
ment Home.
Sec. 364. Assistance to local educational agencies that benefit dependents of
members of the Armed Forces and Department of Defense ci-
vilian employees.
Sec. 365. Strategic plan for expansion of distance learning initiatives.
Sec. 366. Public availability of operating agreements between military installa-
tions and financial institutions.
Sec. 367. Department of Defense readiness reporting system.
Sec. 368. Travel by Reservists on carriers under contract with General Services
Administration.
Subtitle G—Demonstration of Commercial-Type Practices To
Improve Quality of Personal Property Shipments
Sec. 381. Demonstration program required.
Sec. 382. Goals of demonstration program.
Sec. 383. Program participants.
Sec. 384. Test plan.
Sec. 385. Other methods of personal property shipping.
Sec. 386. Duration of demonstration program.
Sec. 387. Evaluation of demonstration program.
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength levels.
Sec. 403. Date for submission of annual manpower requirements report.
Sec. 404. Extension of authority for Chairman of the Joint Chiefs of Staff to
designate up to 12 general and flag officer positions to be ex-
cluded from general and flag officer grade limitations.
Subtitle B—Reserve Forces
Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Increase in number of members in certain grades authorized to serve
on active duty in support of the Reserves.
Subtitle C—Authorization of Appropriations
Sec. 421. Authorization of appropriations for military personnel.
TITLE V—MILITARY PERSONNEL POLICY
Subtitle A—Officer Personnel Policy
Sec. 501. Codification of eligibility of retired officers and former officers for
consideration by special selection boards.
Sec. 502. Communication to promotion boards by officers under consideration.
Sec. 503. Procedures for separation of regular officers for substandard per-
formance of duty or certain other reasons.
Sec. 504. Posthumous commissions and warrants.
Sec. 505. Tenure of Chief of the Air Force Nurse Corps.
Subtitle B—Reserve Component Matters
Sec. 511. Composition of selective early retirement boards of Reserve general
and flag officers of the Navy and Marine Corps.
Sec. 512. Active status service requirement for promotion consideration for
Army and Air Force Reserve component brigadier generals.
Sec. 513. Revision to educational requirement for promotion of Reserve officers.
Subtitle C—Military Education and Training
Sec. 521. Requirements relating to recruit basic training.
Sec. 522. After-hours privacy for recruits during basic training.
Sec. 523. Extension of reporting dates for Commission on Military Training
and Gender Related Issues.
Sec. 524. Improved oversight of innovative readiness training.
Subtitle D—Decorations, Awards, and Commendations
Sec. 531. Study of new decorations for injury or death in line of duty.
Sec. 532. Waiver of time limitations for award of certain decorations to speci-
fied persons.
Sec. 533. Commendation of the Navy and Marine Corps personnel who served
in the United States Navy Asiatic Fleet from 1910–1942.
Sec. 534. Appreciation for service during World War I and World War II by
members of the Navy assigned on board merchant ships as the
Naval Armed Guard Service.
Sec. 535. Sense of Congress the regarding the heroism, sacrifice, and service
of the military forces of South Vietnam and other nations in
connection with the United States Armed Forces during the
Vietnam conflict.
Sec. 536. Sense of Congress the regarding the heroism, sacrifice, and service
of former South Vietnamese commandos in connection with
United States Armed Forces during the Vietnam conflict.
Subtitle E—Administration of Agencies Responsible for
Review and Correction of Military Records
Sec. 541. Personnel freeze.
Sec. 542. Professional staff.
Sec. 543. Ex parte communications.
Sec. 544. Timeliness standards.
Subtitle F—Other Matters
Sec. 551. One-year extension of certain force drawdown transition authorities
relating to personnel management and benefits.
Sec. 552. Leave without pay for academy cadets and midshipmen.
Sec. 553. Provision for recovery, care, and disposition of the remains of all
medically retired members.
Subtitle D—Retired Pay, Survivor Benefits, and Related
Matters
Sec. 641. Effective date of former spouse survivor benefit coverage.
Sec. 642. Revision to computation of retired pay for enlisted members who are
reduced in grade before retirement.
Subtitle E—Other Matters
Sec. 651. Deletion of Canal Zone from definition of United States possessions
for purposes of pay and allowances.
Sec. 652. Accounting of advance payments.
Sec. 653. Reimbursement of rental vehicle costs when motor vehicle transported
at Government expense is late.
Sec. 654. Education loan repayment program for certain health profession offi-
cers serving in Selected Reserve.
TITLE VII—HEALTH CARE PROVISIONS
Subtitle A—Health Care Services
Sec. 701. Expansion of dependent eligibility under retiree dental program.
Sec. 702. Plan for provision of health care for military retirees and their de-
pendents comparable to health care provided under TRICARE
Prime.
Sec. 703. Plan for redesign of military pharmacy system.
Sec. 704. Transitional authority to provide continued health care coverage for
certain persons unaware of loss of CHAMPUS eligibility.
Subtitle B—TRICARE Program
Sec. 711. Payment of claims for provision of health care under the TRICARE
program for which a third party may be liable.
Sec. 712. Procedures regarding enrollment in TRICARE Prime.
Subtitle C—Other Matters
Sec. 721. Inflation adjustment of premium amounts for dependents dental pro-
gram.
Sec. 722. System for tracking data and measuring performance in meeting
TRICARE access standards.
Sec. 723. Air Force research, development, training, and education on exposure
to chemical, biological, and radiological hazards.
Sec. 724. Authorization to establish a Level 1 Trauma Training Center.
Sec. 725. Report on implementation of enrollment-based capitation for funding
for military medical treatment facilities.
Sec. 726. Requirement that military physicians possess unrestricted licenses.
Sec. 727. Establishment of mechanism for ensuring completion by military phy-
sicians of continuing medical education requirements.
Sec. 728. Proposal on establishment of appeals process for claimcheck denials
and review of claimcheck system.
Sec. 729. Demonstration project to include certain covered beneficiaries within
Federal employees health benefits program.
TITLE VIII—ACQUISITION POLICY, ACQUISITION
MANAGEMENT, AND RELATED MATTERS
Sec. 801. Limitation on procurement of ammunition and components.
Sec. 802. Acquisition Corps eligibility.
Sec. 803. Amendments relating to procurement from firms in industrial base
for production of small arms.
Sec. 804. Time for submission of annual report relating to Buy American Act.
Sec. 805. Study on increase in micro-purchase threshold.
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION
AND MANAGEMENT
Sec. 901. Further reductions in defense acquisition workforce.
Sec. 902. Limitation on operation and support funds for the Office of the Sec-
retary of Defense.
Sec. 903. Revision to defense directive relating to management headquarters
and headquarters support activities.
Sec. 904. Under Secretary of Defense for Policy to have responsibility with re-
spect to export control activities of the Department of Defense.
Sec. 905. Independent task force on transformation and Department of De-
fense organization.
Sec. 906. Improved accounting for defense contract services.
Sec. 907. Repeal of requirement relating to assignment of tactical airlift mis-
sion to reserve components.
Sec. 908. Repeal of certain requirements relating to Inspector General inves-
tigations of reprisal complaints.
Sec. 909. Consultation with Commandant of the Marine Corps regarding Ma-
rine Corps aviation.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Outlay limitations.I74Subtitle B—Naval Vessels and Ship-
yards
Sec. 1011. Revision to requirement for continued listing of two Iowa-class bat-
tleships on the Naval Vessel Register.
Sec. 1012. Transfer of USS NEW JERSEY.
Sec. 1013. Long-term charter of three vessels in support of submarine rescue,
escort, and towing.
Sec. 1014. Transfer of obsolete Army tugboat.
Sec. 1015. Long-term charter contracts for acquisition of auxiliary vessels for
the Department of Defense.
Subtitle C—Matters Relating to Counter Drug Activities
Sec. 1021. Department of Defense support for counter-drug activities.
Sec. 1022. Support for counter-drug operation Caper Focus.
Sec. 1023. Sense of the Congress regarding establishment of counter-drug cen-
ter in Panama.
Sec. 1024. Assignment of members of the Armed Forces to assist Immigration
and Naturalization Service and Customs Service.
Sec. 1025. Random drug testing of Department of Defense employees.
Subtitle D—Miscellaneous Report Requirements and Repeals
Sec. 1031. Annual report on resources allocated to support and mission activi-
ties.
Subtitle E—Other Matters
Sec. 1041. Clarification of land conveyance authority, Armed Forces Retire-
ment Home, District of Columbia.
Sec. 1042. Content of notice required to be provided garnishees before garnish-
ment of pay or benefits.
Sec. 1043. Training of special operations forces with friendly foreign forces.
Sec. 1044. Prohibition on assignment of United States forces to United Nations
rapidly deployable mission headquarters.
Sec. 1045. Clarification of State authority to tax compensation paid to certain
employees.
Sec. 1046. Requirement to provide burial flags wholly produced in the United
States.
Sec. 1047. Investigation of actions relating to 174th Fighter Wing of New York
Air National Guard.
Sec. 1048. Facilitation of operations at Edwards Air Force Base, California.
Sec. 1049. Sense of the Congress concerning tax treatment of principal resi-
dence of members of Armed Forces while away from home on
active duty.
Sec. 1050. Operation, maintenance, and upgrade of Air Force space launch fa-
cilities.
Sec. 1051. Sense of the Congress concerning new parent support program and
military families.
TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN
PERSONNEL
Sec. 1101. Authority for release to Coast Guard of drug test results of civil
service mariners of the Military Sealift Command.
Sec. 1102. Limitations on back pay awards.
Sec. 1103. Restoration of annual leave accumulated by civilian employees at in-
stallations in the Republic of Panama to be closed pursuant to
the Panama Canal Treaty of 1977.
Sec. 1104. Repeal of program providing preference for employment of military
spouses in military child care facilities.
Sec. 1105. Elimination of retained pay as basis for determining locality-based
adjustments.
Sec. 1106. Observance of certain holidays at duty posts outside the United
States.
TITLE XII—MATTERS RELATING TO OTHER NATIONS
Sec. 1201. Limitation on funds for peacekeeping in the Republic of Bosnia and
Herzegovina.
Sec. 1202. Reports on the mission of United States forces in Republic of Bos-
nia and Herzegovina.
Sec. 1203. Report on military capabilities of an expanded NATO alliance.
Sec. 1204. One-year extension of counterproliferation authorities for support of
United Nations Special Commission on Iraq.
Sec. 1205. Repeal of landmine moratorium.
Sec. 1206. Sense of the Congress.
Sec. 1207. Investigations of satellite launch failures.
Sec. 1208. Prohibition on exports of missile equipment and technology to
China.
Sec. 1209. Prohibition on exports and reexports of satellites to China.
Sec. 1210. Prohibition on restriction of Armed Forces under Kyoto Protocol to
the United Nations Framework Convention on Climate Change.
Sec. 1211. Limitation on payments for cost of NATO expansion.
Sec. 1212. Commodity jurisdiction for satellite exports.
Sec. 1213. Release of export information held by the Department of Commerce
for purpose of national security assessments.
Sec. 1214. Execution of objection authority within the Department of Defense.
Sec. 1215. Transfer of excess UH-1 Huey helicopters and AH-1 Cobra heli-
copters to foreign countries.
Sec. 1216. Nuclear export reporting requirement.
TITLE XIII—COOPERATIVE THREAT REDUCTION WITH
STATES OF FORMER SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction facility.
Sec. 1305. Limitation on obligation of funds for a specified period.
Sec. 1306. Requirement to submit breakdown of amounts requested by project
category.
Sec. 1307. Limitation on use of funds until completion of fiscal year 1998 re-
quirements.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Limitation on use of funds for biological weapons proliferation pre-
vention activities in Russia.
Sec. 1310. Limitation on use of certain funds for strategic arms elimination in
Russia or Ukraine.
Sec. 1311. Availability of funds.
TITLE XIV—DEFENSE AGAINST WEAPONS OF MASS
DESTRUCTION
Sec. 1401. Short title.
Sec. 1402. Findings.
Subtitle A—Domestic Preparedness
Sec. 1411. Domestic preparedness for response to threats of terrorist use of
weapons of mass destruction.
Sec. 1412. Report on domestic emergency preparedness.
Sec. 1413. Performance of threat and risk assessments.
Subtitle B—Advisory Commission to Assess Domestic Re-
sponse Capabilities For Terrorism Involving Weapons of
Mass Destruction
Sec. 1421. Establishment of commission.
Sec. 1422. Duties of commission.
Sec. 1423. Report.
Sec. 1424. Powers.
Sec. 1425. Commission procedures.
Sec. 1426. Personnel matters.
Sec. 1427. Miscellaneous administrative provisions.
Sec. 1428. Termination of commission.
Sec. 1429. Funding.
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS
Sec. 2001. Short title.
TITLE XXI—ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Increase in fiscal year 1998 authorization for military construction
projects at Fort Drum, New York, and Fort Sill, Oklahoma.
TITLE XXII—NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization to accept road construction project, Marine Corps
Base, Camp Lejeune, North Carolina.
TITLE XXIII—AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
TITLE XXIV—DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Increase in fiscal year 1995 authorization for military construction
projects at Pine Bluff Arsenal, Arkansas, and Umatilla Army
Depot, Oregon.
Sec. 2406. Increase in fiscal year 1990 authorization for military construction
project at Portsmouth Naval Hospital, Virginia.
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION
SECURITY INVESTMENT PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land acquisition
projects.
Sec. 2602. Army Reserve construction project, Salt Lake City, Utah.
TITLE XXVII—EXPIRATION AND EXTENSION OF
AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be specified
by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1996 projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.
TITLE XXVIII—GENERAL PROVISIONS
Subtitle A—Military Construction Program and Military
Family Housing Changes
Sec. 2801. Definition of ancillary supporting facilities under the alternative au-
thority for acquisition and improvement of military housing.
Subtitle B—Real Property and Facilities Administration
Sec. 2811. Restoration of Department of Defense lands used by another Fed-
eral agency.
Sec. 2812. Outdoor recreation development on military installations for disabled
veterans, military dependents with disabilities, and other per-
sons with disabilities.
Sec. 2813. Report on use of utility system conveyance authority.
Subtitle C—Defense Base Closure and Realignment
Sec. 2821. Payment of stipulated penalties assessed under the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980 in connection with McClellan Air Force Base, California.
Sec. 2822. Elimination of waiver authority regarding prohibition against certain
conveyances of property at Naval Station, Long Beach, Califor-
nia.
Subtitle D—Land Conveyances
PART I—ARMY CONVEYANCES
Sec. 2831. Land conveyance, Army Reserve Center, Massena, New York.
Sec. 2832. Land conveyance, Army Reserve Center, Ogdensburg, New York.
Sec. 2833. Land conveyance, Army Reserve Center, Jamestown, Ohio.
Sec. 2834. Land conveyance, Stewart Army Sub-Post, New Windsor, New
York.
Sec. 2835. Land conveyance, Indiana Army Ammunition Plant, Charlestown,
Indiana.
Sec. 2836. Land conveyance, Volunteer Army Ammunition Plant, Chattanooga,
Tennessee.
Sec. 2837. Release of reversionary interest of United States in former Redstone
Army Arsenal property conveyed to Alabama Space Science
Exhibit Commission.
Sec. 2838. Land conveyance, Fort Sheridan, Illinois.
PART II—NAVY CONVEYANCES
Sec. 2841. Easement, Marine Corps Base, Camp Pendleton, California.
Sec. 2842. Land conveyance, Naval Reserve Readiness Center, Portland,
Maine.
Sec. 2843. Land conveyance, Naval and Marine Corps Reserve Facility,
Youngstown, Ohio.
PART III—AIR FORCE CONVEYANCES
Sec. 2851. Land conveyance, Lake Charles Air Force Station, Louisiana.
Sec. 2852. Land conveyance, Air Force housing facility, La Junta, Colorado.
Subtitle E—Other Matters
Sec. 2861. Repeal of prohibition on joint use of Gray Army Airfield, Fort
Hood, Texas, with civil aviation.
Sec. 2862. Designation of building containing Navy and Marine Corps Reserve
Center, Augusta, Georgia.
Sec. 2863. Expansion of Arlington National Cemetery.
Sec. 2864. Reporting requirements under demonstration project for purchase of
fire, security, police, public works, and utility services from
local government agencies.
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECU-
RITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL
SECURITY PROGRAMS
Subtitle A—National Security Programs Authorizations
Sec. 3101. Weapons activities.
Sec. 3102. Defense environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Subtitle B—Recurring General Provisions
Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction activi-
ties.
Sec. 3127. Funds available for all national security programs of the Depart-
ment of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.
Subtitle C—Program Authorizations, Restrictions, and
Limitations
Sec. 3131. Prohibition on Federal loan guarantees for defense environmental
management privatization projects.
Sec. 3132. Extension of funding prohibition relating to international coopera-
tive stockpile stewardship.
Sec. 3133. Use of certain funds for missile defense technology development.
Sec. 3134. Selection of technology for tritium production.
Sec. 3135. Limitation on use of certain funds at Hanford Site.
Sec. 3136. Hanford tank cleanup program reforms.
Subtitle D—Other Matters
Sec. 3151. Termination of worker and community transition assistance.
Sec. 3152. Requirement for plan to modify employment system used by Depart-
ment of Energy in defense environmental management pro-
grams.
Sec. 3153. Report on stockpile stewardship criteria.
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY
BOARD
Sec. 3201. Authorization.
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE
Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
TITLE XXXIV—NAVAL PETROLEUM RESERVES
Sec. 3401. Definitions.
Sec. 3402. Authorization of appropriations.
Sec. 3403. Price requirement on sale of certain petroleum during fiscal year
1999.
Sec. 3404. Disposal of Naval Petroleum Reserve Numbered 2.
Sec. 3405. Disposal of Naval Petroleum Reserve Numbered 3.
Sec. 3406. Disposal of Oil Shale Reserve Numbered 2.
Sec. 3407. Administration.
Sec. 3408. Treatment of State of California claim regarding Naval Petroleum
Reserve Numbered 1.
TITLE XXXV—PANAMA CANAL COMMISSION
Sec. 3501. Short title; references to Panama Canal Act of 1979.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.
Sec. 3505. Donations to the Commission.
Sec. 3506. Sunset of United States overseas benefits just before transfer.
Sec. 3507. Central Examining Office.
Sec. 3508. Liability for vessel accidents.
Sec. 3509. Panama Canal Board of Contract Appeals.
Sec. 3510. Technical amendments.
TITLE XXXVI—MARITIME ADMINISTRATION
Sec. 3601. Authorization of appropriations for fiscal year 1999.
Sec. 3602. Conveyance of NDRF vessel M/V BAYAMON.
Sec. 3603. Conveyance of NDRF vessels BENJAMIN ISHERWOOD and
HENRY ECKFORD.
Sec. 3604. Clearinghouse for maritime information.
Sec. 3605. Conveyance of NDRF vessel ex-USS LORAIN COUNTY.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on National Security and the
Committee on Appropriations of the House of Rep-
resentatives.
DIVISION A—DEPARTMENT OF
DEFENSE AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of
Appropriations
SEC. 101. ARMY.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for procurement for the Army as follows:
(1) For aircraft, $1,420,759,000.
(2) For missiles, $1,232,285,000.
(3) For weapons and tracked combat vehicles,
$1,507,638,000.
(4) For ammunition, $1,053,455,000.
(5) For other procurement, $3,136,918,000.
SEC. 102. NAVY AND MARINE CORPS.
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 1999 for procurement for the Navy
as follows:
(1) For aircraft, $7,420,847,000.
(2) For weapons, including missiles and tor-
pedoes, $1,192,195,000.
(3) 
For 
shipbuilding 
and 
conversion,
$5,992,361,000.
(4) For other procurement, $3,969,507,000.
(b) MARINE CORPS.—Funds are hereby authorized to
be appropriated for fiscal year 1999 for procurement for
the Marine Corps in the amount of $691,868,000.
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds
are hereby authorized to be appropriated for procurement
of ammunition for the Navy and the Marine Corps in the
amount of $451,968,000.
SEC. 103. AIR FORCE.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for procurement for the Air Force as fol-
lows:
(1) For aircraft, $8,219,077,000.
(2) For missiles, $2,234,668,000.
(3) For ammunition, $383,627,000.
(4) For other procurement, $7,046,372,000.
SEC. 104. DEFENSE-WIDE ACTIVITIES.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for Defense-wide procurement in the
amount of $1,962,866,000.
SEC. 105. RESERVE COMPONENTS.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for procurement of aircraft, vehicles, com-
munications equipment, and other equipment for the re-
serve components of the Armed Forces as follows:
(1) 
For 
the 
Army 
National 
Guard,
$50,000,000.
(2) For the Air National Guard, $50,000,000.
(3) For the Army Reserve, $50,000,000.
(4) For the Naval Reserve, $50,000,000.
(5) For the Air Force Reserve, $50,000,000.
(6) 
For 
the 
Marine 
Corps 
Reserve,
$50,000,000.
SEC. 106. DEFENSE INSPECTOR GENERAL.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for procurement for the Inspector General
of the Department of Defense in the amount of
$1,300,000.
SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.
There is hereby authorized to be appropriated for fis-
cal year 1999 the amount of $834,000,000 for—
(1) the destruction of lethal chemical agents
and munitions in accordance with section 1412 of
the Department of Defense Authorization Act, 1986
(50 U.S.C. 1521); and
(2) the destruction of chemical warfare materiel
of the United States that is not covered by section
1412 of such Act.
SEC. 108. DEFENSE HEALTH PROGRAMS.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for the Department of Defense for pro-
curement for carrying out health care programs, projects,
and activities of the Department of Defense in the total
amount of $402,387,000.
SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for the Department of Defense for carry-
ing out the Defense Export Loan Guarantee Program
under section 2540 of title 10, United States Code, in the
total amount of $1,250,000.
Subtitle B—Army Programs
SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR
LONGBOW HELLFIRE MISSILE PROGRAM.
Beginning with the fiscal year 1999 program year,
the Secretary of the Army may, in accordance with section
2306b of title 10, United States Code, enter into a
multiyear procurement contract for procurement of the
AGM–114 Longbow Hellfire missile.
SEC. 112. M1A2 SYSTEM ENHANCEMENT PROGRAM STEP 1
PROGRAM.
Of the funds authorized to be appropriated for the
Army in section 101 for weapons and tracked combat vehi-
cles, $20,300,000 shall be available only for the Step 1
program for the M1A2 System Enhancement Program.
Subtitle C—Navy Programs
SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR THE
DEPARTMENT OF THE NAVY.
(a) AUTHORITY
FOR SPECIFIED NAVY AIRCRAFT
PROGRAMS.—Beginning with the fiscal year 1999 pro-
gram year, the Secretary of the Navy may, in accordance
with section 2306b of title 10, United States Code, enter
into a multiyear procurement contract for procurement for
the following programs:
(1) The AV–8B aircraft program.
(2) The T–45TS aircraft program.
(3) The E–2C aircraft program.
(b) AUTHORITY FOR MARINE CORPS MEDIUM TAC-
TICAL VEHICLE REPLACEMENT.—Beginning with the fis-
cal year 1999 program year, the Secretary of the Navy
may, in accordance with section 2306b of title 10, United
States Code, enter into a multiyear procurement contract
to procure the Marine Corps Medium Tactical Vehicle Re-
placement.
Subtitle D—Other Matters
SEC. 141. ALTERNATIVE TECHNOLOGIES FOR DESTRUC-
TION OF ASSEMBLED CHEMICAL WEAPONS.
(a) PROGRAM
MANAGEMENT.—(1) The program
manager for the Assembled Chemical Weapons Assess-
ment program shall continue to manage the development
and testing (including demonstration and pilot-scale facil-
ity testing) of technologies for the destruction of lethal
chemical munitions that are potential or demonstrated al-
ternatives to the baseline incineration program. In per-
forming such management, the program manager shall act
independently of the program manager for Chemical De-
militarization and shall report to the Secretary of the
Army, or his designee.
(2) The Under Secretary of Defense for Acquisition
and Technology and the Secretary of the Army shall joint-
ly submit to Congress, not later than December 1, 1998,
a plan for the transfer of oversight of the Assembled
Chemical Weapons Assessment program from the Under
Secretary to the Secretary.
(3) Oversight of the Assembled Chemical Weapons
Assessment program shall be transferred pursuant to the
plan submitted under paragraph (2) not later than 60
days after the date of the submission of the notice re-
quired under section 152(f)(2) of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104–
106; 110 Stat. 214; 50 U.S.C. 1521(f)(2)).
(b) POST-DEMONSTRATION ACTIVITIES.—(1) The
program manager for the Assembled Chemical Weapons
Assessment program may carry out those activities nec-
essary to ensure that an alternative technology for the de-
struction of lethal chemical munitions may be imple-
mented immediately after—
(A) the technology has been demonstrated to be
successful;
(B) the Under Secretary of Defense for Acqui-
sition and Technology has submitted to Congress a
report on the demonstration; and
(C) a decision has been made to proceed with
the pilot-scale facility phase for an alternative tech-
nology.
(2) To prepare for the immediate implementation of
any such technology, the program manager may, during
fiscal years 1998 and 1999, take the following actions:
(A) Establish program requirements.
(B) Prepare procurement documentation.
(C) Develop environmental documentation.
(D) Identify and prepare to meet public out-
reach and public participation requirements.
(E) Prepare to award a contract for the design,
construction, and operation of a pilot facility for the
technology to the provider team for the technology
not later than December, 1999.
(c) PLAN FOR PILOT PROGRAM.—If the Secretary of
Defense proceeds with a pilot program under section
152(f) of the National Defense Authorization Act for Fis-
cal Year 1996 (Public Law 104–106; 110 Stat. 214; 50
U.S.C. 1521(f)), the Secretary shall prepare a plan for
the pilot program and shall submit to Congress a report
on such plan (including information on the cost of, and
schedule for, implementing the pilot program).
(d) FUNDING.—Of the amount authorized to be ap-
propriated in section 107, $12,600,000 shall be available
for the Assembled Chemical Weapons Assessment pro-
gram for the following:
(1) Demonstration of alternative technologies
under the Assembled Chemical Weapons Assessment
program.
(2) Planning and preparation to proceed imme-
diately from demonstration of an alternative tech-
nology to the development of a pilot-scale facility for
the technology, including planning and preparation
for—
(A) continued development of the tech-
nology leading to deployment of the technology;
(B) satisfaction of requirements for envi-
ronmental permits;
(C) demonstration, testing, and evaluation;
(D) initiation of actions to design a pilot
program;
(E) provision of support at the field office
or depot level for deployment of the technology;
and
(F) educational outreach to the public to
engender support for the development.
(3) An independent cost and schedule evalua-
tion of the Assembled Chemical Weapons Assembled
program, to be completed not later than December
30, 1999.
(e) ASSEMBLED CHEMICAL WEAPONS ASSESSMENT
PROGRAM DEFINED.—In this section, the term ‘‘Assem-
bled Chemical Weapons Assessment program’’ means the
program established in section 152(e) of the National De-
fense Authorization Act for Fiscal Year 1996 (Public Law
104–106; 110 Stat. 214; 50 U.S.C. 1521), and section
8065 of the Department of Defense Appropriations Act,
1997 (as contained in section 101 of Public Law 104–
208; 110 Stat. 3009–101), for identifying and dem-
onstrating alternatives to the baseline incineration process
for the demilitarization of assembled chemical munitions.
TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION
Subtitle A—Authorization of
Appropriations
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for the use of the Department of Defense
for research, development, test, and evaluation as follows:
(1) For the Army, $4,791,997,000.
(2) For the Navy, $8,377,059,000.
(3) For the Air Force, $13,785,401,000.
(4) 
For 
Defense-wide 
activities,
$9,283,515,000, of which—
(A) $251,106,000 is authorized for the ac-
tivities of the Director, Test and Evaluation;
and
(B) $29,245,000 is authorized for the Di-
rector of Operational Test and Evaluation.
SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.
(a) FISCAL YEAR 1999.—Of the amounts authorized
to be appropriated by section 201, $4,208,978,000 shall
be available for basic research and applied research
projects.
(b) BASIC RESEARCH AND APPLIED RESEARCH DE-
FINED.—For purposes of this section, the term ‘‘basic re-
search and applied research’’ means work funded in pro-
gram elements for defense research and development
under Department of Defense category 6.1 or 6.2.
Subtitle 
B—Program 
Require-
ments, Restrictions, and Limita-
tions
SEC. 211. MANAGEMENT RESPONSIBILITY FOR NAVY MINE
COUNTERMEASURES PROGRAMS.
Section 216(a) of the National Defense Authorization
Act for Fiscal Years 1992 and 1993 (Public Law 102–
190; 105 Stat. 1317, as amended) is amended by striking
out ‘‘through 1999’’ and inserting in lieu thereof ‘‘through
2003’’.
SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECH-
NOLOGIES.
Of the funds authorized to be appropriated under sec-
tion 201(2) for Carrier System Development (program ele-
ment 0603512N), $50,000,000 shall be available for re-
search, development, test, evaluation, and insertion into
the CVN–77 nuclear aircraft carrier program of tech-
nologies designed to transition to, demonstrate enhanced
capabilities for, or mitigate cost and technical risks of, the
CV(X) aircraft carrier program.
SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.
(a) REQUIREMENTS RELATING TO COMPETITION.—
Section 2525(d)(1) of title 10, United States Code, is
amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) For each grant awarded and each contract, co-
operative agreement, or other transaction entered into on
a cost-share basis under the program, the ratio of contract
recipient cost to Government cost shall be determined by
competitive procedures. For a project for which the Gov-
ernment receives an offer from only one offeror, the con-
tracting officer shall negotiate the ratio of contract recipi-
ent cost to Government cost that represents the best value
to the Government.’’.
(b) REQUIREMENTS RELATING
TO COST SHARE
WAIVERS.—Section 2525(d)(2) of such title is amended—
(1) by redesignating subparagraphs (A), (B),
and (C) as clauses (i), (ii), and (iii), respectively;
(2) by inserting ‘‘(A)’’ after ‘‘(2)’’; and
(3) by adding at the end the following new sub-
paragraphs:
‘‘(B) For any grant awarded or contract, cooperative
agreement, or other transaction entered into on a basis
other than a cost-sharing basis because of a determination
made under subparagraph (A), the transaction file for the
project concerned must document the rationale for the de-
termination.
‘‘(C) The Secretary of Defense may delegate the au-
thority to make determinations under subparagraph (A)
only to the Under Secretary of Defense for Acquisition
and Technology or a service acquisition executive, as ap-
propriate.’’.
(c) COST SHARE GOAL.—Section 2525(d) of such
title is amended—
(1) by striking out paragraph (4); and
(2) in paragraph (3)—
(A) by striking out ‘‘At least’’ and insert-
ing in lieu thereof ‘‘As a goal, at least’’;
(B) by striking out ‘‘shall’’ and inserting
in lieu thereof ‘‘should’’; and
(C) by adding at the end the following:
‘‘The Secretary of Defense, in coordination with
the Secretaries of the military departments and
upon recommendation of the Under Secretary
of Defense for Acquisition and Technology,
shall establish annual objectives to meet such
goal.’’.
(d) ADDITIONAL INFORMATION TO BE INCLUDED IN
FIVE-YEAR PLAN.—Section 2525(e)(1) of such title is
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and
(3) by inserting at the end the following new
subparagraph:
‘‘(C) the extent of cost sharing in the manufac-
turing technology program by companies in the pri-
vate sector, weapons system program offices and
other defense program offices, Federal agencies
other than the Department of Defense, nonprofit in-
stitutions and universities, and other sources.’’.
SEC. 214. SCIENCE AND TECHNOLOGY FUNCTIONS OF THE
DEPARTMENT OF DEFENSE.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) to ensure sufficient financial resources are
devoted to emerging technologies, a goal of at least
10 percent of funds available under title II for each
of the Army, Navy, and Air Force should be dedi-
cated to science and technology in each military de-
partment;
(2) management and funding for science and
technology for each military department should re-
ceive a level of priority and leadership attention
equal to the level received by program acquisition,
and the Secretary of each military department
should ensure that a senior member of the depart-
ment holds the appropriate title and responsibility to
ensure effective oversight and emphasis on science
and technology;
(3) to ensure an appropriate long-term focus
for investments, a sufficient percentage of science
and technology funds should be directed toward new
technology areas, and annual reviews should be con-
ducted for ongoing research areas to ensure that
those funded initiatives are either integrated into ac-
quisition programs or discontinued;
(4) the military departments should take appro-
priate steps to ensure that sufficient numbers of of-
ficers and civilian employees in each department
hold advanced degrees in technical fields; and
(5) of particular concern, the Secretary of the
Air Force should take appropriate measures to en-
sure that sufficient numbers of scientists and engi-
neers are maintained to address the technological
challenges faced in the areas of air, space, and infor-
mation technology.
(b) STUDY.—
(1) REQUIREMENT.—The Secretary of Defense,
in cooperation with the National Research Council of
the National Academy of Sciences, shall conduct a
study on the technology base of the Department of
Defense.
(2) MATTERS COVERED.—The study shall—
(A) recommend the minimum requirements
to maintain a technology base that is sufficient,
based on both historical developments and fu-
ture projections, to project superiority in air
and space weapons systems, and information
technology;
(B) address the effects on national defense
and civilian aerospace industries and informa-
tion technology by reducing funding below the
goal described in paragraph (1) of subsection
(a); and
(C) recommend the appropriate level of
staff holding baccalaureate, masters, and doc-
torate degrees, and the optimal ratio of civilian
and military staff holding such degrees, to en-
sure that science and technology functions of
the Department of Defense remain vital.
(3) REPORT.—Not later than 120 days after
the date on which the study required under para-
graph (1) is completed, the Secretary shall submit to
Congress a report on the results of the study.
SEC. 215. NEXT GENERATION INTERNET PROGRAM.
(a) FUNDING.—Of the funds authorized to be appro-
priated under section 201(4), $53,000,000 shall be avail-
able for the Next Generation Internet program.
(b) LIMITATION.—Notwithstanding the enactment of
any other provision of law after the date of the enactment
of this Act, amounts may be appropriated for fiscal year
1999 for research, development, test, and evaluation by
the Department of Defense for the Next Generation Inter-
net program only pursuant to the authorization of appro-
priations under section 201(4).
Subtitle C—Ballistic Missile
Defense
SEC. 231. NATIONAL MISSILE DEFENSE POLICY.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Threats posed by ballistic missiles and
weapons of mass destruction to the national terri-
tory of the United States continue to grow as the
trend in ballistic missile proliferation and develop-
ment is toward longer range and increasingly sophis-
ticated missiles.
(2) Russian and Chinese sources continue to
proliferate missile and other advanced technologies.
(3) North Korea is developing the Taepo-Dong
2 missile, which would have a range sufficient to
strike Alaska and Hawaii, and other countries hos-
tile to the United States, including Iran, Libya, and
Iraq, have demonstrated an interest in acquiring or
developing ballistic missiles capable of reaching the
United States.
(4) Russia’s increased reliance on nuclear forces
to compensate for the decline of its conventional
forces and uncertainty regarding command and con-
trol of those nuclear forces increase the possibility of
an accidental or unauthorized launch of Russian bal-
listic missiles.
(5) The United States could be deterred from
effectively promoting or protecting its national inter-
ests around the world if any State or territory of the
United States is vulnerable to long-range ballistic
missiles deployed by nations hostile to the United
States.
(b) SENSE
OF
THE CONGRESS CONCERNING NA-
TIONAL MISSILE DEFENSE POLICY.—It is the sense of the
Congress that—
(1) any national missile defense system de-
ployed by the United States must provide effective
defense against limited, accidental, or unauthorized
ballistic missile attack for all 50 States; and
(2) the territories of the United States should
be afforded effective protection against ballistic mis-
sile attack.
SEC. 232. LIMITATION ON FUNDING FOR THE MEDIUM EX-
TENDED AIR DEFENSE SYSTEM.
None of the funds appropriated for fiscal year 1999
for the Ballistic Missile Defense Organization may be obli-
gated for the Medium Extended Air Defense System
(MEADS) until the Secretary of Defense certifies to Con-
gress that the future-years defense plan includes sufficient
programmed funding for that system to complete the de-
sign and development phase. If the Secretary does not
submit such a certification by January 1, 1999, then (ef-
fective as of that date) the funds appropriated for fiscal
year 1999 for the Ballistic Missile Defense Organization
that are allocated for the MEADS program shall be avail-
able to support modification of the Patriot Advanced Ca-
pability–3, Configuration 3, so as to support the require-
ment for mobile theater missile defense to be met by the
MEADS system.
SEC. 233. LIMITATION ON FUNDING FOR COOPERATIVE
BALLISTIC MISSILE DEFENSE PROGRAMS.
Of the funds appropriated for fiscal year 1999 for
the Russian-American Observational Satellite (RAMOS)
program, $5,000,000 may not be obligated until the Sec-
retary of Defense certifies to Congress that the Depart-
ment of Defense has received detailed information con-
cerning the nature, extent, and military implications of the
transfer of ballistic missile technology from Russian
sources to Iran.
SEC. 
234. 
LIMITATION 
ON 
FUNDING 
FOR
COUNTERPROLIFERATION SUPPORT.
None of the funds appropriated for fiscal year 1999
for counterproliferation support in Program Element
63160BR may be obligated until the Secretary of Defense
submits to Congress the report required by section 234
of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 1664; 50 U.S.C.
2367) to be submitted not later than January 30, 1998.
SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELE-
MENTS.
(a) BMD PROGRAM ELEMENTS.—(1) Chapter 9 of
title 10, United States Code, is amended by inserting after
section 222 the following new section:
‘‘§ 223. Ballistic missile defense programs
‘‘(a) PROGRAM ELEMENTS SPECIFIED.—In the budg-
et justification materials submitted to Congress in support
of the Department of Defense budget for any fiscal year
(as submitted with the budget of the President under sec-
tion 1105(a) of title 31), the amount requested for activi-
ties of the Ballistic Missile Defense Organization shall be
set forth in accordance with the following program ele-
ments:
‘‘(1) The Patriot system.
‘‘(2) The Navy Area system.
‘‘(3) The Theater High-Altitude Area Defense
system.
‘‘(4) The Navy Theater Wide system.
‘‘(5) The Medium Extended Air Defense Sys-
tem.
‘‘(6) Joint Theater Missile Defense.
‘‘(7) National Missile Defense.
‘‘(8) Support Technologies.
‘‘(9) Family of Systems Engineering and Inte-
gration.
‘‘(10) Ballistic Missile Defense Technical Oper-
ations.
‘‘(11) Threat and Countermeasures.
‘‘(12) International Cooperative Programs.
‘‘(b) TREATMENT OF MAJOR DEFENSE ACQUISITION
PROGRAMS.—Amounts requested for Theater Missile De-
fense and National Missile Defense major defense acquisi-
tion programs shall be specified in individual, dedicated
program elements, and amounts appropriated for those
programs shall be available only for Ballistic Missile De-
fense activities.
‘‘(c) MANAGEMENT AND SUPPORT.—The amount re-
quested for each program element specified in subsection
(a) shall include requests for the amounts necessary for
the management and support of the programs, projects,
and activities contained in that program element.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 222 the following new item:
‘‘223. Ballistic missile defense programs.’’.
(b) REPEAL OF SUPERSEDED PROVISION.—Section
251 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104–106; 10 U.S.C. 221 note) is
repealed.
SEC. 236. RESTRUCTURING OF THEATER HIGH-ALTITUDE
AREA DEFENSE SYSTEM ACQUISITION STRAT-
EGY.
(a) ESTABLISHMENT
OF ALTERNATIVE CONTRAC-
TOR.—(1) The Secretary of Defense shall select an alter-
native contractor as a potential source for the development
and production of the interceptor missile for the Theater
High-Altitude Area Defense (THAAD) system within a
‘‘leader-follower’’ acquisition strategy.
(2) The Secretary shall take such steps as necessary
to ensure that the prime contractor for that system pre-
pares the selected alternative contractor so as to enable
the alternative contractor to be able (if necessary) to as-
sume the responsibilities for development or production of
an interceptor missile for that system.
(3) The Secretary shall select the alternative contrac-
tor as expeditiously as possible and shall use the authority
provided in section 2304(c)(2) of title 10, United States
Code, to expedite that selection.
(4) Of the amount authorized under section 201(4)
for the Theater High-Altitude Area Defense system, the
amount provided for the Demonstration/Validation phase
for that system is hereby increased by $142,700,000, of
which $30,000,000 shall be available for the purposes of
this subsection, and the amount provided for the Engi-
neering and Manufacturing Development phase for that
system is hereby reduced by $142,700,000.
(b) COST SHARING ARRANGEMENT.—The Secretary
of Defense shall contractually establish an appropriate
cost sharing arrangement with the prime contractor as of
May 14, 1998, for the interceptor missile for the Theater
High-Altitude Area Defense system for flight test failures
of that missile beginning with flight test nine.
(c) ENGINEERING AND MANUFACTURING DEVELOP-
MENT PHASE FOR OTHER ELEMENTS OF THE THAAD
SYSTEM.—The Secretary of Defense shall proceed as ex-
peditiously as possible with the milestone approval process
for the Engineering and Manufacturing Development
phase for the Battle Management and Command, Control,
and Communications (BM/C3) element of the Theater
High-Altitude Area Defense system and for the Ground-
Based Radar (GBR) element for that system. That mile-
stone approval process for those elements shall proceed
without regard to the stage of development of the missile
interceptor for that system.
(d) REQUIREMENT
BEFORE
PROCUREMENT
OF
UOES MISSILES.—The Secretary of Defense may not ob-
ligate any funds for acquisition of User Operational Eval-
uation System (UOES) missiles for the Theater High-Alti-
tude Area Defense system until there have been two suc-
cessful tests of the interceptor missile for that system.
(e) LIMITATION ON ENTERING ENGINEERING AND
MANUFACTURING DEVELOPMENT PHASE.—The Secretary
of Defense may not approve the commencement of the En-
gineering and Manufacturing Development phase for the
interceptor missile for the Theater High-Altitude Area De-
fense system until there have been three successful tests
of that missile.
(f) SUCCESSFUL TEST DEFINED.—For purposes of
this section, a successful test of the interceptor missile of
the Theater High-Altitude Area Defense system is a body-
to-body intercept by that missile of a ballistic missile tar-
get.
TITLE III—OPERATION AND
MAINTENANCE
Subtitle A—Authorization of
Appropriations
SEC. 301. OPERATION AND MAINTENANCE FUNDING.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
expenses, not otherwise provided for, for operation and
maintenance, in amounts as follows:
(1) For the Army, $16,339,700,000.
(2) For the Navy, $21,839,328,000.
(3) For the Marine Corps, $2,539,703,000.
(4) For the Air Force, $18,816,108,000.
(5) 
For 
Defense-wide 
activities,
$10,354,216,000.
(6) For the Army Reserve, $1,197,622,000.
(7) For the Naval Reserve, $948,639,000.
(8) 
For 
the 
Marine 
Corps 
Reserve,
$116,993,000.
(9) For the Air Force Reserve, $1,747,696,000.
(10) 
For 
the 
Army 
National 
Guard,
$2,464,815,000.
(11) 
For 
the 
Air 
National 
Guard,
$3,096,933,000.
(12) For the Defense Inspector General,
$130,764,000.
(13) For the United States Court of Appeals
for the Armed Forces, $7,324,000.
(14) For Environmental Restoration, Army,
$377,640,000.
(15) For Environmental Restoration, Navy,
$281,600,000.
(16) For Environmental Restoration, Air Force,
$379,100,000.
(17) For Environmental Restoration, Defense-
wide, $26,091,000.
(18) For Environmental Restoration, Formerly
Used Defense Sites, $195,000,000.
(19) For Overseas Humanitarian, Disaster, and
Civic Aid programs, $47,311,000.
(20) For Drug Interdiction and Counter-drug
Activities, Defense-wide, $727,582,000.
(21) For the Kaho’olawe Island Conveyance,
Remediation, and Environmental Restoration Trust
Fund, $15,000,000.
(22) 
For 
Defense 
Health 
Program,
$9,663,035,000.
(23) Former Soviet Union Threat Reduction
programs, $417,400,000.
(24) For Overseas Contingency Operations
Transfer Fund, $746,900,000.
SEC. 302. WORKING CAPITAL FUNDS.
Funds are hereby authorized to be appropriated for
fiscal year 1999 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds
in amounts as follows:
(1) For the Defense Working Capital Funds,
$1,076,571,000.
(2) For the National Defense Sealift Fund,
$669,566,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fis-
cal year 1999 from the Armed Forces Retirement Home
Trust Fund the sum of $70,745,000 for the operation of
the Armed Forces Retirement Home, including the United
States Soldiers’ and Airmen’s Home and the Naval Home.
SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCK-
PILE TRANSACTION FUND.
(a) TRANSFER AUTHORITY.—To the extent provided
in appropriations Acts, not more than $150,000,000 is au-
thorized to be transferred from the National Defense
Stockpile Transaction Fund to operation and maintenance
accounts for fiscal year 1999 in amounts as follows:
(1) For the Army, $50,000,000.
(2) For the Navy, $50,000,000.
(3) For the Air Force, $50,000,000.
(b) TREATMENT OF TRANSFERS.—Amounts trans-
ferred under this section—
(1) shall be merged with, and be available for
the same purposes and the same period as, the
amounts in the accounts to which transferred; and
(2) may not be expended for an item that has
been denied authorization of appropriations by Con-
gress.
(c) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The transfer authority provided in this section is in
addition to the transfer authority provided in section
1001.
SEC. 305. REFURBISHMENT OF M1–A1 TANKS.
Of the amount authorized to be appropriated pursu-
ant to section 301(1) for operation and maintenance for
the Army, $31,000,000 shall be available only for the re-
furbishment of up to 70 M1–A1 tanks under the AIM-
XXI program.
SEC. 306. OPERATION OF PREPOSITIONED FLEET, NA-
TIONAL TRAINING CENTER, FORT IRWIN,
CALIFORNIA.
Of the amount authorized to be appropriated pursu-
ant to section 301(1) for operation and maintenance for
the Army, $60,200,000 shall be available only to pay costs
associated with the operation of the prepositioned fleet of
equipment during training rotations at the National
Training Center, Fort Irwin, California.
SEC. 307. RELOCATION OF USS WISCONSIN.
Of the amount authorized to be appropriated pursu-
ant to section 301(2) for operation and maintenance for
the Navy, $6,000,000 may be available for the purpose
of relocating the USS WISCONSIN, which is currently
in a reserve status at the Norfolk Naval Shipyard, Vir-
ginia, to a suitable location in order to increase available
berthing space at the shipyard.
SEC. 308. FISHER HOUSE TRUST FUNDS.
Funds are hereby authorized to be appropriated for
fiscal year 1999, out of funds in Fisher House Trust
Funds not otherwise appropriated, for the operation of
Fisher houses described in section 2221(d) of title 10,
United States Code, as follows:
(1) From the Fisher House Trust Fund, De-
partment of the Army, $250,000 for Fisher houses
that are located in proximity to medical treatment
facilities of the Army.
(2) From the Fisher House Trust Fund, De-
partment of the Navy, $150,000 for Fisher houses
that are located in proximity to medical treatment
facilities of the Navy.
(3) From the Fisher House Trust Fund, De-
partment of the Air Force, $150,000 for Fisher
houses that are located in proximity to medical
treatment facilities of the Air Force.
Subtitle B—Information
Technology Issues
SEC. 311. ADDITIONAL INFORMATION TECHNOLOGY RE-
SPONSIBILITIES OF CHIEF INFORMATION OF-
FICERS.
(a) IN GENERAL.—(1) Chapter 131 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2223. Information technology: additional respon-
sibilities of Chief Information Officers
‘‘(a) ADDITIONAL RESPONSIBILITIES.—In addition
to the responsibilities provided for in chapter 35 of title
44 and in section 5125 of the Clinger-Cohen Act of 1996
(40 U.S.C. 1425)—
‘‘(1) the Chief Information Officer of the De-
partment of Defense, with respect to the elements of
the Department of Defense other than the military
departments, shall—
‘‘(A) review and provide recommendations
to the Secretary of Defense on Department of
Defense budget requests for information tech-
nology and national security systems;
‘‘(B) ensure the interoperability of infor-
mation technology and national security sys-
tems throughout the Department of Defense;
and
‘‘(C) ensure that information technology
and national security systems standards that
will apply throughout the Department of De-
fense are prescribed; and
‘‘(2) the Chief Information Officer of each mili-
tary department, with respect to the military depart-
ment concerned, shall—
‘‘(A) review budget requests for all infor-
mation technology and national security sys-
tems;
‘‘(B) ensure that information technology
and national security systems are in compliance
with standards of the Government and the De-
partment of Defense;
‘‘(C) ensure that information technology
and national security systems are interoperable
with other relevant information technology and
national security systems of the Government
and the Department of Defense;
‘‘(D) provide for the elimination of dupli-
cate information technology and national secu-
rity systems within and between the military
departments and Defense Agencies; and
‘‘(E) coordinate with the Joint Staff with
respect to information technology and national
security systems.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) The term ‘Chief Information Officer’
means the senior official designated by the Secretary
of Defense or a Secretary of a military department
pursuant to section 3506 of title 44.
‘‘(2) The term ‘information technology’ has the
meaning given that term by section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
‘‘(3) The term ‘national security system’ has
the meaning given that term by section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2223. Information technology: additional responsibilities of Chief Information
Officers.’’.
(b) EFFECTIVE DATE.—Section 2223 of title 10,
United States Code, as added by subsection (a), shall take
effect on October 1, 1998.
SEC. 312. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR
SUPPLY PURCHASES.
(a) ELECTRONIC MALL SYSTEM.—In this section, the
term ‘‘electronic mall system’’ means an electronic system
for displaying, ordering, and purchasing supplies and ma-
teriel available from sources within the Department of De-
fense and from the private sector.
(b) DEVELOPMENT AND MANAGEMENT.—Using ex-
isting systems and technology available in the Department
of Defense, the Defense Logistics Agency shall develop a
single, defense-wide electronic mall system. The Defense
Logistics Agency shall be responsible for the management
of the resulting electronic mall system. The Secretary of
each military department and the head of each Defense
Agency shall provide to the Defense Logistics Agency the
necessary and requested data to support the development
and operation of the electronic mall system.
(c) IMPLEMENTATION DATE.—The electronic mall
system shall be operational and available throughout the
Department of Defense not later than June 1, 1999. After
that date, a military department or Defense Agency (other
than the Defense Logistics Agency) may not develop or
operate an electronic mall system.
SEC. 313. PROTECTION OF FUNDING PROVIDED FOR
CERTAIN INFORMATION TECHNOLOGY AND
NATIONAL SECURITY PROGRAMS.
(a) USE
FOR
SPECIFIED
PURPOSES.—Of the
amounts authorized to be appropriated to the Department
of Defense for fiscal years 1999, 2000, and 2001 for infor-
mation technology and national security programs of the
Department of Defense, not less than the amount specified
in subsection (b) shall be available for each such fiscal
year for the purposes of the information technology and
national security programs described in such subsection,
unless an alternative use of the funds is specifically ap-
proved by a law enacted after the date of the enactment
of the law originally authorizing the funds.
(b) COVERED PROGRAMS AND AMOUNTS.—The infor-
mation technology and national security programs referred
to in subsection (a), and the amounts to be available for
each program, are the following:
(1) The Force XXI program of the Army,
$360,000,000.
(2) The Information Technology for the 21st
Century programs of the Navy, $472,000,000.
(3) The Communications Infrastructure pro-
grams of the Air Force, $228,500,000.
(4) The Telecom and Computing Infrastructure
programs of the Marine Corps, $93,000,000.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
(2) The term ‘‘national security system’’ has
the meaning given that term in section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).
SEC. 314. PRIORITY FUNDING TO ENSURE YEAR 2000 COM-
PLIANCE OF MISSION CRITICAL INFORMA-
TION TECHNOLOGY AND NATIONAL SECU-
RITY SYSTEMS.
(a) FUNDS FOR COMPLETION OF YEAR 2000 CON-
VERSION.—(1) Of the amounts authorized to be appro-
priated pursuant to this Act for information technology
and national security systems of the Department of De-
fense designated as mission critical, not more than 25 per-
cent may be used to fund activities unrelated to ensuring
that the awareness, assessment, and renovation phases of
year 2000 conversion for such information technology and
national security systems are completed.
(2) Of the amounts authorized to be appropriated
pursuant to this Act for information technology and na-
tional security systems of the Department of Defense
(other than information technology and national security
systems covered by paragraph (1)), not less than
$1,000,000,000 shall be available only for transfer to sup-
port activities to ensure that the awareness, assessment,
renovation, and validation phases of year 2000 conversion
for information technology and national security systems
covered by paragraph (1) are completed.
(b) EXCEPTIONS.—(1) This section does not apply to
or affect funding for information technology and national
security programs identified in section 313(b).
(2) The Secretary of Defense may authorize expendi-
tures in excess of the 25 percent limitation specified in
subsection (a)(1) if the Secretary determines that addi-
tional expenditures are required to prevent the failure of
the information technology or national security system
and provides prior notice to Congress of the reasons for
the additional expenditures.
(c) TERMINATION.—(1) On the date on which the
Secretary of Defense determines that the year 2000 ren-
ovation phase has been completed for a particular infor-
mation technology or national security system covered by
paragraph (1) of subsection (a), such paragraph shall
cease to apply to that information technology or national
security system.
(2) Paragraph (2) of such subsection shall cease to
apply on the date on which the Secretary of Defense deter-
mines that all of the information technology and national
security systems covered by paragraph (1) of such sub-
section are fully funded through the validation phase of
year 2000 conversion, have an established contingency
plan, and have completed a point of origin to point of exe-
cution evaluation.
(d) COMPTROLLER GENERAL REVIEW.—Not later
than January 30, 1999, the Comptroller General shall
submit to Congress a briefing containing the following:
(1) Separate lists of each information tech-
nology and national security system of the Depart-
ment of Defense covered by subsection (a)(1) for
which the renovation phase of year 2000 conversion
is not completed by December 30, 1998.
(2) A evaluation of the effect of subsection (a)
on the year 2000 conversion success rate.
(3) A list of each information technology and
national security system covered by subsection (a)(1)
that will not achieve year 2000 compliance by Sep-
tember 30, 1999.
(4) An explanation of how the military depart-
ments, the Joint Chiefs of Staff, and Defense Agen-
cies are applying the definition of mission critical.
(5) Recommendations regarding the manner in
which funding could best be allocated to achieve year
2000 compliance for the greatest number of infor-
mation technology and national security systems cov-
ered by subsection (a)(1).
(e) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
(2) The term ‘‘national security system’’ has
the meaning given that term in section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).
(3) The term ‘‘mission critical’’ means an infor-
mation technology or national security system of the
Department of Defense identified as mission critical
in the table prepared by the Joint Chiefs of Staff en-
titled ‘‘Mission Critical Systems (All Services/Agen-
cies)’’, dated March 20, 1998, or in the table printed
by the Defense Integrated Support Tool entitled
‘‘Year 2000 Information on Mission Critical Sys-
tems’’, dated March 19, 1998.
(4) The terms ‘‘awareness’’, ‘‘assessment’’,
‘‘renovation’’, and ‘‘validation’’ have the meanings
given the terms in the Department of Defense ‘‘Year
2000 Management Plan’’, version 1.0, released in
April 1997.
SEC. 315. EVALUATION OF YEAR 2000 COMPLIANCE AS PART
OF TRAINING EXERCISES PROGRAMS.
(a) REPORT ON EVALUATION PLAN.—Not later than
December 15, 1998, the Secretary of Defense shall submit
to Congress a report containing a plan to include a simu-
lated year 2000 as part of the military exercises described
in subsection (b) in order to evaluate, in an operational
environment, the extent to which information technology
and national security systems involved in the exercises will
successfully operate, including the ability of the systems
to access and transmit information from point of origin
to point of termination, during the actual year 2000.
(b) COVERED MILITARY EXERCISES.—A military ex-
ercise referred to in subsection (a) is a military exercise
conducted by the Department of Defense, during the pe-
riod beginning on January 1, 1999, and ending on Sep-
tember 30, 1999—
(1) under the training exercises program known
as the ‘‘CJCS Exercise Program’’;
(2) at the Naval Strike and Air Warfare Cen-
ter, the Army National Training Center, or the Air
Force Air Warfare Center; or
(3) as part of Naval Carrier Group fleet train-
ing or Marine Corps Expeditionary Unit training.
(c) ELEMENTS OF REPORT.—The report under sub-
section (a) shall include the following:
(1) A list of all military exercises described in
subsection (b) to be conducted during the period
specified in such subsection.
(2) A description of the manner in which the
year 2000 will be simulated for information tech-
nology and national security systems involved in
each military exercise.
(3) The duration of the year 2000 simulation in
each military exercise.
(4) The methodology to be used in turning over
the information technology and national security sys-
tems to the year 2000 in order to best identify those
systems that fail to operate reliably during the mili-
tary exercise.
(5) A list of the information technology and na-
tional security systems excluded from the plan under
subsection (d)(1), including how the military exercise
will utilize an excluded system’s year 2000 contin-
gency plan.
(6) A list of the exercises and information tech-
nology and national security systems excluded from
the plan under subsection (d)(2), and a description
of the effect that continued year 2000 noncompli-
ance of the systems would have on military readi-
ness.
(d) EXCLUSIONS.—(1) Subsection (a) shall not apply
to an information technology or national security system
if the Secretary of Defense determines that the system will
be incapable of performing reliably during the year 2000
simulation portion of the military exercise. In the case of
each excluded system, the system may not be used during
the period of the year 2000 simulation. Instead, the ex-
cluded system shall be replaced by the year 2000 contin-
gency plan for the system.
(2) If the mission of a military exercise will be seri-
ously hampered by the number of information technology
and national security systems covered by paragraph (1),
the Secretary of Defense may exclude the entire exercise
from the requirements of subsection (a).
(3) Subsection (a) shall not apply to an information
technology or national security system with cryptological
applications.
(4) If the decision to exclude a military exercise or
information technology or national security system is
made under paragraph (1) or (2) after the date of the
submission of the report required by subsection (a), the
Secretary of Defense shall notify Congress of the exclusion
not later than two weeks before commencing the military
exercise. The notification shall include the information re-
quired under paragraph (5) or (6) of subsection (c), de-
pending on whether the exclusion covers the entire exercise
or particular information technology and national security
systems.
(e) COMPTROLLER GENERAL REVIEW.—Not later
than January 30, 1999, the Comptroller General shall re-
view the report and plan submitted under subsection (a)
and submit to Congress a briefing evaluating the meth-
odology to be used under the plan to simulate the year
2000, describing the potential information that will be col-
lected as a result of implementation of the plan, and de-
scribing the impact that the plan will have on military
readiness.
(f) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
(2) The term ‘‘national security system’’ has
the meaning given that term in section 5142 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1452).
Subtitle C—Environmental
Provisions
SEC. 321. AUTHORIZATION TO PAY NEGOTIATED SETTLE-
MENT FOR ENVIRONMENTAL CLEANUP AT
FORMER DEPARTMENT OF DEFENSE SITES IN
CANADA.
(a) AUTHORIZATION.—To the extent provided in ap-
propriations Acts, the Secretary of Defense may pay an
amount to the Government of Canada of not more than
$100,000,000 (in fiscal year 1996 constant dollars), for
purposes of implementing the October 1996 negotiated
settlement between the United States and Canada relating
to environmental cleanup at various sites in Canada that
were formerly used by the Department of Defense.
(b) METHOD OF PAYMENT.—The amount authorized
by subsection (a) shall be paid in 10 annual payments,
with the first payment made from amounts appropriated
for fiscal year 1998.
(c) FISCAL YEAR 1998 PAYMENT.—The payment
under this section for fiscal year 1998 shall be made from
amounts appropriated pursuant to section 301(5) of the
National Defense Authorization Act for Fiscal Year 1998
(Public Law 105–85; 111 Stat. 1669).
(d) FISCAL YEAR 1999 PAYMENT.—The payment
under this section for fiscal year 1999 shall be made from
amounts appropriated pursuant to section 301(5).
(e) LIMITATION.—The authorization provided in this
section shall not be construed as setting a precedent for
payment under a treaty of an environmental claim made
by another nation, unless the Senate has given its consent
to the ratification of the treaty.
SEC. 322. REMOVAL OF UNDERGROUND STORAGE TANKS.
Of the amount authorized to be appropriated pursu-
ant to section 301(18) (relating to environmental restora-
tion of formerly used defense sites), the Secretary of the
Army may use not more than $150,000 for the removal
of underground storage tanks at the Authorities Allied In-
dustrial Park, Macon, Georgia.
Subtitle D—Defense Infrastructure
Support Improvement
SEC. 331. REPORTING AND STUDY REQUIREMENTS BEFORE
CHANGE OF COMMERCIAL AND INDUSTRIAL
TYPE FUNCTIONS TO CONTRACTOR PER-
FORMANCE.
(a) IN GENERAL.—Section 2461 of title 10, United
States Code, is amended—
(1) by redesignating subsection (c) as sub-
section (h) and transferring such subsection to ap-
pear after subsection (g); and
(2) by striking out subsections (a) and (b) and
inserting in lieu thereof the following new sub-
sections:
‘‘(a) REPORTING
AND STUDY REQUIREMENTS
AS
PRECONDITION TO CHANGE IN PERFORMANCE.—A com-
mercial or industrial type function of the Department of
Defense that, as of October 1, 1980, was being performed
by Department of Defense civilian employees may not be
changed to performance by a private contractor or
changed to procurement through a private contractor until
the Secretary of Defense fully complies with the reporting
and study requirements specified in subsections (b) and
(c).
‘‘(b) NOTIFICATION AND ELEMENTS OF STUDY.—(1)
Before commencing to study a commercial or industrial
type function described in subsection (a) for possible
change to performance by a private contractor or possible
change to procurement through a private contractor, the
Secretary of Defense shall submit to Congress a report
containing the following:
‘‘(A) The function to be studied for possible
change.
‘‘(B) The location at which the function is per-
formed by Department of Defense civilian employ-
ees.
‘‘(C) The number of civilian employee positions
potentially affected.
‘‘(D) The anticipated length and cost of the
study.
‘‘(E) A certification that the performance of the
commercial or industrial type function by civilian
employees of the Department of Defense is not pre-
cluded due to any constraint or limitation in terms
of man years, end strengths, full-time equivalent po-
sitions, or maximum number of employees.
‘‘(2) The responsibility of the Secretary of Defense
to submit the report required under paragraph (1) may
be delegated only to senior acquisition executives or higher
officials for the military departments and the Defense
Agencies.
‘‘(3) The study of a commercial or industrial type
function for possible change in performance shall include
the following:
‘‘(A) A comparison of the cost of performance
of the function by Department of Defense civilian
employees and by private contractor to demonstrate
whether change to performance by a private contrac-
tor or change to procurement through a private con-
tractor will result in savings to the Government over
the life of the contract, including in the compari-
son—
‘‘(i) the amount estimated by the Secretary
of Defense (based on bids received) to be the
amount of a contract for performance of the
function by a private contractor;
‘‘(ii) the cost to the Government of De-
partment of Defense civilian employees per-
forming the function; and
‘‘(iii) the costs and expenditures which the
Government would incur (in addition to the
amount of the contract) because of the award
of such a contract.
‘‘(B) An examination of the potential economic
effect of performance of the function by a private
contractor—
‘‘(i) on employees who would be affected by
such a change in performance; and
‘‘(ii) on the local community and the Gov-
ernment, if more than 75 employees perform
the function.
‘‘(C) An examination of the effect of perform-
ance of the function by a private contractor on the
military mission of the function.
‘‘(4) If the commercial or industrial type function at
issue involves a working-capital fund in the Department
of Defense and the study concerns the possible procure-
ment by a requisitioning agency of services or supplies
from a private contractor instead of the working-capital
fund, in lieu of the comparison required by paragraph (3),
the study shall include a comparison of the sources of the
services or supplies to determine which source is more
cost-effective for the requisitioning agency.
‘‘(5) An individual or entity at a facility where a com-
mercial or industrial type function is studied for possible
change in performance may raise an objection to the study
on the grounds that the report required under paragraph
(1) as a precondition for the study does not contain the
certification required by subparagraph (E) of such para-
graph. The objection may be raised at any time during
the course of the study, shall be in writing, and shall be
submitted to the Secretary of Defense. If the Secretary
determines that the certification was omitted, the commer-
cial or industrial type function covered by the study may
not be the subject of request for proposal or award of a
contract until a certification is made that fully complies
with paragraph (1)(E) and the other requirements of this
section are satisfied.
‘‘(c) NOTIFICATION OF DECISION.—(1) If, as a result
of the completion of a study under subsection (b)(3), a
decision is made to change the commercial or industrial
type function that was the subject of the study to perform-
ance by a private contractor or to procurement through
a private contractor, the Secretary of Defense shall submit
to Congress a report describing that decision. The report
shall—
‘‘(A) indicate that the study under subsection
(b)(3) has been completed;
‘‘(B) certify that the Government calculation
for the cost of performance of the function by De-
partment of Defense civilian employees is based on
an estimate of the most efficient and cost effective
organization for performance of the function by De-
partment of Defense civilian employees;
‘‘(C) certify that the comparison required by
subsection (b)(3)(A) (or alternatively by subsection
(b)(4)) as part of the study demonstrates that the
performance of the function by a private contractor
or procurement of the function through a private
contractor will result in savings to the Government
over the life of the contract;
‘‘(D) certify that the entire comparison is avail-
able for examination; and
‘‘(E) contain a timetable for completing change
of the function to contractor performance.
‘‘(2) The actual change of the function to contractor
performance may not begin until after the submission of
the report required by this subsection.’’.
(b) CONFORMING AMENDMENTS.—(1) Subsections
(e)(2) and (f)(1) of such section are amended by striking
out ‘‘converted’’ and inserting in lieu thereof ‘‘changed’’.
(2) Subsection (f)(2) of such section is amended by
striking out ‘‘conversion’’ and inserting in lieu thereof
‘‘change’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act but shall not apply with respect to conversion
of a function of the Department of Defense to perform-
ance by a private contractor concerning which the Sec-
retary of Defense provided to Congress, before the date
of the enactment of this Act, a notification under para-
graph (1) of section 2461(a) of title 10, United States
Code, as in effect on the day before the date of the enact-
ment of this Act.
SEC. 332. CLARIFICATION OF REQUIREMENT TO MAINTAIN
GOVERNMENT-OWNED 
AND 
GOVERNMENT-
OPERATED CORE LOGISTICS CAPABILITY.
Section 2464 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(c) RULE
OF CONSTRUCTION.—The requirement
under subsection (a) that the Department of Defense
maintain a core logistics capability that is Government-
owned and Government-operated is not satisfied when a
core logistics workload is converted to contractor perform-
ance even though the actual performance of the workload
will be carried out in a Government-owned, Government-
operated facility of the Department of Defense as a sub-
contractor of the private contractor. Nothing in section
2474 of this title or section 337 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103–
337; 108 Stat. 2717) authorizes the use of subcontracts
as a means to provide workloads to Government-owned,
Government-operated facilities of the Department of De-
fense in order to satisfy paragraph (4) of subsection (a).’’.
SEC. 333. OVERSIGHT OF DEVELOPMENT AND IMPLEMEN-
TATION 
OF 
AUTOMATED 
IDENTIFICATION
TECHNOLOGY.
(a) SMARTCARD PROGRAM DEFINED.—In this sec-
tion, the term ‘‘smartcard program’’ means an automated
identification technology program, including any pilot pro-
gram, employing one or more of the following technologies:
(1) Magnetic stripe.
(2) Bar codes, both linear and two-dimensional
(including matrix symbologies).
(3) Smartcard.
(4) Optical memory.
(5) Personal computer memory card inter-
national association carriers.
(6) Other established or emerging automated
identification technologies, including biometrics and
radio frequency identification.
(b) 
OVERSIGHT
RESPONSIBILITY.—(1) 
The
Smartcard Technology Office established in the Defense
Human Resources Field Activity of the Department of De-
fense shall be responsible for—
(A) overseeing the development and implemen-
tation of all smartcard programs in the Department;
and
(B) coordinating smartcard programs with the
Joint Staff, the Secretaries of the military depart-
ments, and the directors of the Defense Agencies.
(2) After the date of the enactment of this Act, funds
appropriated for the Department of Defense may not be
obligated for a smartcard program unless the program is
reviewed and approved by the Smartcard Technology Of-
fice. The review and approval before that date of a
smartcard program by the Office is sufficient to satisfy
the requirements of this paragraph.
(c) TYPES OF OVERSIGHT.—As part of its oversight
responsibilities, the Smartcard Technology Office shall es-
tablish standards designed—
(1) to ensure the compatibility and interoper-
ability of smartcard programs in the Department of
Defense; and
(2) to identify and terminate redundant,
unfeasible, or uneconomical smartcard programs.
SEC. 334. CONDITIONS ON EXPANSION OF FUNCTIONS PER-
FORMED 
UNDER 
PRIME 
VENDOR 
CON-
TRACTS.
(a) PRIME VENDOR CONTRACT DEFINED.—For pur-
poses of this section, the term ‘‘prime vendor contract’’
means an innovative contract that gives a defense contrac-
tor the responsibility to manage, store, and distribute in-
ventory, manage and provide services, or manage and per-
form research, on behalf of the Department of Defense
on a frequent, regular basis, for users within the Depart-
ment on request. The term includes contracts commonly
referred to as prime vendor support contracts, flexible
sustainment contracts, and direct vendor delivery con-
tracts.
(b) CONDITIONS ON EXPANDED USE.—If the Sec-
retary of Defense or the Secretary of a military depart-
ment proposes to enter into a prime vendor contract for
a hardware system, including the performance or manage-
ment of depot-level maintenance and repair (as defined in
section 2460 of title 10, United States Code) or logistics
management responsibilities, the Secretary may not enter
into the prime vendor contract until the end of the 60-
day period beginning on the date on which the Secretary
submits to Congress a report, specific to that proposal,
that—
(1) describes the competitive procedures to be
used to award the prime vendor contract;
(2) evaluates the effect of the prime vendor con-
tract on working-capital funds in the Department of
Defense; and
(3) contains a cost/benefit analysis that dem-
onstrates that use of the prime vendor contract will
result in savings to the Government over the life of
the contract.
(c) COMPTROLLER GENERAL REVIEW.—During the
waiting period provided in subsection (b) for a proposed
prime vendor contract, the Comptroller General shall re-
view the report submitted under subsection (b) with re-
spect to that contract and submit to Congress a report
regarding—
(1) whether the cost savings to the Government
identified in the report submitted under subsection
(b) are achievable; and
(2) whether use of a prime vendor contract will
comply with the requirements of chapter 146 of title
10, United States Code, applicable to depot-level
maintenance and repair.
(d) RELATIONSHIP TO OTHER LAWS.—Nothing in
this section shall be construed to exempt a prime vendor
contract from the requirements of section 2461 of title 10,
United States Code, or any other provision of chapter 146
of such title.
SEC. 335. CLARIFICATION OF DEFINITION OF DEPOT-LEVEL
MAINTENANCE AND REPAIR.
Section 2460(a) of title 10, United States Code, is
amended by inserting before the period at the end of the
first sentence the following: ‘‘or the location at which the
maintenance or repair is performed’’.
SEC. 336. CLARIFICATION OF COMMERCIAL ITEM EXCEP-
TION TO REQUIREMENTS REGARDING CORE
LOGISTICS CAPABILITIES.
Section 2464(a)(5) of title 10, United States Code,
is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(5)’’;
(2) by adding at the end of subparagraph (A),
as so designated, the following: ‘‘The determination
of whether a modification is minor shall be based on
a comparison of only the critical systems of the ver-
sion sold in the commercial marketplace and the ver-
sion purchased by the Government, and a modifica-
tion may not be considered to be minor unless at
least 90 percent of the total content by component
value remains identical.’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) In this paragraph, the term ‘substantial quan-
tities’ means, with respect to determining whether an item
is a commercial item, that purchases and leases of the
item to the general public constitute the majority of all
transactions involving the item at the time the exception
under paragraph (3) is proposed to be exercised.’’.
SEC. 337. DEVELOPMENT OF PLAN FOR ESTABLISHMENT
OF 
CORE 
LOGISTICS 
CAPABILITIES 
FOR
MAINTENANCE AND REPAIR OF C–17 AIR-
CRAFT.
(a) FINDINGS.—Congress finds the following:
(1) The C–17 aircraft, which is replacing the
C–141 aircraft, will serve as the cornerstone of
heavy airlift capability of the Armed Forces.
(2) The C–17 aircraft achieved initial oper-
ational capability in January 1995 and will complete
the significant fourth year of its operational capabil-
ity in January 1999.
(3) As provided in section 2464(a)(3) of title
10, United States Code, the C–17 aircraft is a weap-
on system that is ‘‘necessary to enable the armed
forces to fulfill the strategic and contingency plans
prepared by the Chairman of the Joint Chiefs of
Staff’’.
(4) The depot-level maintenance and repair of
such a weapon system must be performed at Govern-
ment-owned, Government-operated facilities of the
Department of Defense in order to maintain the core
logistics capabilities of the Department of Defense,
as required under such section 2464.
(5) The sole-source contract entered into in
January 1998 regarding the depot-level maintenance
and repair of C–17 aircraft and related tasks, known
as the Interim Contract for the C–17 Flexible
Sustainment Program, does not meet the require-
ments of law.
(b) PLAN REQUIRED.—Not later than March 1,
1999, the Secretary of the Air Force shall submit to Con-
gress a plan for the establishment of the core logistics ca-
pabilities for the C–17 aircraft consistent with the require-
ments of section 2464 of title 10, United States Code.
(c) EFFECT ON EXISTING CONTRACT.—After March
1, 1999, the Secretary of the Air Force may not extend
the Interim Contract for the C–17 Flexible Sustainment
Program until after the end of the 60-day period begin-
ning on the date the plan required by subsection (b) is
received by Congress.
(d) COMPTROLLER GENERAL REVIEW.—During the
period specified in subsection (c), the Comptroller General
shall review the plan required under subsection (b) and
submit to Congress a report evaluating the merits of the
plan.
SEC. 338. CONTRACTOR-OPERATED CIVIL ENGINEERING
SUPPLY STORES PROGRAM.
(a) DEFINITIONS.—In this section:
(1) The term ‘‘contractor-operated civil engi-
neering supply store’’ means a Government-owned
facility that, as of the date of the enactment of this
Act, is operated by a contractor under the contrac-
tor-operated 
civil 
engineering 
supply 
store
(COCESS) program of the Department of the Air
Force for the purpose of—
(A) maintaining inventories of civil engi-
neering supplies on behalf of a military depart-
ment; and
(B) furnishing such supplies to the depart-
ment as needed.
(2) The term ‘‘civil engineering supplies’’ means
parts and supplies needed for the repair and mainte-
nance of military installations.
(b) FINDINGS.—Congress finds the following:
(1) In 1970, the Strategic Air Command of the
Air Force began to use contractor-operated civil en-
gineering supply stores to improve the efficiency and