An Act to authorize appropriations during the fiscal year 1977, for procurement of aircraft, missiles, naval vessels, tracked combat vehicles, torpedoes, and other weapons, and research, development, test and evaluation for the Armed Forces, and to prescribe the authorized personnel strength for each active duty component and of the Selected Reserve of each Reserve component of the Armed Forces and of civilian personnel of the Department of Defense, and to authorize the military training student loads, and for other purposes.
PL 94-361 (H.R.12438), enacted 07/14/1976

PUBLIC LAW 94-361—JULY 14, 1976 
90 STAT. 923 
Public Law 94-361 
94th Congress 
An Act 
To authorize appropriations during tlie fiscal year 1977 for procurement of air-
craft, missiles, naval vessels, tracked combat vehicles, torpedoes, and other 
weapons, and research, development, test, and evaluation for the Armed 
Forces, and to prescribe the authorized personnel strength for each active duty 
component and of the Selected Reserve of each Reserve component of the 
Armed Forces and of civilian personnel of the Department of Defense, and to 
authorize the military training student loads, and for other purposes. 
Be it enacted hy the Seivate atul House of Representatives 
of the 
United States of America in Congress 
assembled, 
T I T L E I — P K O C U R E M E N T 
SEC. 101. Funds are hereby authorized to be appropriated during the 
fiscal year 1977 for the use of the Armed Forces of the United States 
for procurement of aircraft, missiles, naval vessels, tracked combat 
vehicles, torpedoes, and other weapons in amounts as follows: 
AiRCKArr 
For aircraft: for the Army, $554,100,000; for the Navy and the 
Marine Corps, $2,995,800,000, of which not more than $104,100,000 
shall be available only for the procurement of US-3A COD aircraft 
and of which $65,800,000 shall be available only for the procurement of 
the A-6E aircraft; for the Air Force, $6,143,800,000. 
MISSILES 
For 
missiles: 
for 
the 
Army, 
$552,400,000; 
for 
the 
Navy, 
$1,732,900,000, of which no funds may be expended on the Sparrow 
A I M - 7 F missile program until the Secretary of Defense certifies to the 
Committees on Armed Services of the Senate and the House of Repre-
sentatives that he has reviewed the test and evaluation results for such 
missile and has determined, on the basis of such results, that such 
missile fulfills Navy and Air Force mission requirements and is com-
bat-effective; for the Marine Corps, $71,900,000; for the Air Force, 
$1,883,100,000, of which $317,000,000 shall be used only for the pro-
curement of Minuteman III missiles. 
NAVAL, VESSELS 
For naval vessels: for the Navy, $6,655,000,000. 
TRACKED COMBAT VEHICLES 
For tracked combat vehicles: for the Army, $1,056,500,000, of which 
$65,200,000 shall be available for plant facilities expansion and mod-
ernization for future X M - 1 tank production, but none of such funds 
may be obligated on a specific production site until such time as com-
petitive testing between possible United States X M - 1 tank contenders 
has been completed and a winning United States contractor desig-
nated ; for the Marine Corps, $29,700,000. 
July 14, 1976 
[H.R. 12438] 
Department of 
Defense 
Appropriation 
Authorization 
Act, 1977. 
90 STAT. 924 
PUBLIC LAW 94-361—JULY 14, 1976 
TORPEDOES 
For torpedoes and related support equipment: for the Navy, 
$236,800,000. 
OTHER WEAPONS 
_ 
For other weapons: for the Army, $57,300,000; for the Navy, 
$73,000,000; for the Marine Corps, $3,500,000; for the Air Force, 
$400,000. 
TITLE II—KESEARCH, DEVELOPMENT, TEST, AND 
EVALUATION 
SEC. 201. Funds are hereby authorized to be appropriated during the 
fiscal year 1977 for the use of the Armed Forces of the United States 
for research, development, test, and evaluation in amounts as follows: 
For the Army, $2,281,491,000, except that none of the funds author-
ized by this Act may be used to initiate Phase 2 engineering develop-
ment on the 30 millimeter gun for the Advance Attack Helicopter 
until (1) the Secretary of the Army has selected the ammunition for 
such gun and notified the Committees on Armed Services of the 
Senate and the House of Representatives of such selection, and (2) 
30 days have expired following the day on which such committees 
received such notification. 
For the Navy (including the Marine Corps), $3,708,101,000; of 
which not to exceed $2,000,000 shall be available for the completion 
by June 30, 1977, of the advanced development phase of the Sparrow 
AIM-7F monopulse missile; and of which $15,000,000 shall be avail-
able for the engineering development phase of the AIM-7F mono-
pulse missile, but only if (1) the missile flight test and evaluation 
results fully demonstrate the ability of such missile to perform in 
accordance with the specifications and requirements for the AIM-7F 
_ 
monopulse missile, and (2) not less than $5,000,000 has been appro-
priated for the development of a new adverse weather medium range 
air-to-air missile and the Secretary of the Navy and Secretary of the 
Air Force have commenced development of such missile. 
For the Air Force, $3,749,530,000; and 
For the Defense Agencies, $687,880,000, of which $30,000,000 is 
authorized for the activities of the Director of Test and Evaluation, 
Defense. 
SEC. 202. For the Director of Defense Research and Engineering, 
$49,000,000 to be used only for research, development, test, and evalua-
tion of the Trident missile system, including the continued design of 
the thrust termination system and the development of a backup pro-
pellent for such system. 
TITLE III—ACTIVE FORCES 
SEC, 301. For the fiscal year beginning October 1, 1976, the compo-
nents of the Armed Forces are authorized end strengths for active duty 
personnel as follows: 
(1) The Army, 789,000; 
(2) The Navy, 540,600; 
(3) The Marine Corps, 192,000; 
(4) The Air Force, 571,000. 
Report to 
SEC. 302. Paragraph (3) of section 138(c) of title 10, United States 
Congress. 
Code, is amended by adding at the end thereof a new sentence as fol-
lows: "Such report shall also identify, define, and group by mission 
PUBLIC LAW 94-361—JULY 14, 1976 
90 STAT. 925 
and by region the types of military bases, installations, and facilities 
and snail provide an explanation and justification of the relationship 
between this base structure and the proposed military force structure 
together with a comprehensive identification of base operating support 
costs and an evaluation of possible alternatives to reduce such costs.". 
SEC. 303. (a) Clause (3) of section 1009(b) of title 37, United States 
Code, is amended by inserting "subject to subsection (c)," after "(3)". 
(b) Section 1009 of such title is further amended by adding at the 
end thereof the following new subsections: 
"(c) Whenever the President determines such action to be in the 
best interest of the Government, he is authorized to allocate the overall 
average percentage of any increase described in subsection (b) (3) 
among the elements of compensation specified in subsection (a) on a 
percentage basis other than an equal percentage basis; however, the 
amount allocated to the element of monthly basic pay may not be less 
than 75 per centum of the amount that would have been allocated to 
the element of basic pay under subsection (b)(3). 
"(d) Under regulations prescribed by the President, whenever the 
President exercises his authority under subsection (c) to allocate the 
elements of compensation specified in subsection (a) on a percentage 
basis other than an equal percentage basis, he may pay to each member 
without dependents who, under section 403 (b) or (c), is not entitled 
to receive a basic allowance for quarters, an amount equal to the differ-
ence between (1) the amount of such increase under subsection (c) 
in the amount of the basic allowance for quarters which, but for 
section 403 (b) or (c), such member would be entitled to receive, and 
(2) the amount by which such basic allowance for quarters would 
have been increased under subsection (b) (3) if the President had not 
exercised such authority. 
"(e) Whenever the President plans to exercise his authority under 
subsection (c) with respect to any anticipated increase in the compen-
sation of members of the uniformed services, he shall advise the 
Congress, at the earliest practicable time prior to the effective date 
of such increase, regarding the proposed allocation of such increase 
among the different elements of compensation. 
"(f) The allocations of increases made under this section among the 
three elements of compensation shall be assessed in conjunction with 
the quadrennial review of military compensation required by section 
1008(b), and a full report shall be made to the Congress summarizing 
the objectives and results of those allocations.". 
SEC. 304. (a) Subsection (a) of section 501 of title 37, United States 
Code, is amended by (1) striking out "In subsections (b)-(f) of this 
section— 
" (1) 'discharge' means—" 
and inserting in lieu thereof "In this section, 'discharge' means—"; 
(2) redesignating subclauses (A), (B), and (C) of clause (1) as 
clauses (1), (2), and (3), respectively; and (3) striking out the semi-
colon at the end of clause (3), as redesignated, and inserting in lieu 
thereof a period. 
(b) Subsection (a) of such section is further amended by striking 
out clauses (2), (3), and (4). 
(c) Subsection (b) of such section is amended to read as follows: 
"(b) (1) A member of the Army, Navy, Air Force, Marine Corps, 
Coast Guard, or National Oceanic and Atmospheric Administration, 
who has accrued leave to his credit at the time of his discharge, is 
entitled to be paid in cash or by a check on the Treasurer of the United 
States for such leave on the basis of the basic pay to which he was 
entitled on the date of discharge. 
Compensationi 
adjustments, 
allocation. 
Advice to 
Congress. 
Report to 
Congress. 
Leave. 
90 STAT. 926 
PUBLIC LAW 94-361—JULY 14, 1976 
" (2) Payment may not be made under this subsection to a member 
who is discharged for the purpose of accepting an appointment or a 
warrant, or entering into an enlistment, in any uniformed service. 
" (3) Payment may not be made to a member for any leave he elects 
to have carried over to a new enlistment in any uniformed service on 
the day after the date of his discharge; but payment may be made to a 
member for any leave he elects not to carry over to a new enlistment. 
However, the number of days of leave for which payment is made may 
not exceed sixty, less the number of days for which payment was 
previously made under this section after the first day of the second 
calendar month following the month in which the Department of 
Ante, p. 923. 
Defense Appropriation Authorization Act, 1977, was enacted. 
"(4) A member to whom a payment may not be made under this 
subsection, or a member who reverts from officer to enlisted status, 
carries the accrued leave standing to his credit from the one status to 
the other within any uniformed service.". 
(d) The last sentence of subsection (d) of such section is amended 
to read as follows: "However, the number of days upon which pay-
/ 
ment is based is subject to subsection (f).". 
(e) Subsection (e) of such section is amended by striking out 
"Environmental Science Services Administration" and inserting in 
lieu thereof "National Oceanic and Atmospheric Administration". 
' 
(f) Subsection (f) is amended to read as follows: 
"(f) The number of days upon which payment under subsection 
(b), (d), or (g) is based may not exceed sixty, less the number of days 
for which payment has been previously made under such subsections 
after the first day of the second calendar month following the month 
in which the Department of Defense Appropriation Authorization 
Act, 1977, was enacted. For the purposes of this subsection, the num-
ber of days upon which payment may be based shall be determined 
without regard to any break in service or change in status in the uni-
formed services.". 
(g) The second sentence of subsection (g) is amended to read as 
follows: "However, the number of days upon which the lump-sum 
payment is based is subject to subsection (f).". 
37 use 501 note. 
(h) Notwithstanding the provisions of section 501(b)(1) of title 
37, United States Code, as amended by subsection (c), and subject to 
the limitations prescribed in section 501(b)(3) of such title, as 
amended by subsection (c), any leave accrued by any member of the 
Army, Navy, Air Force, Marine Corps, Coast Guard, or National 
Oceanic and Atmospheric Administration prior to the first day of the 
second calendar month following the month in which this section is 
enacted shall, at the option of such member, be paid for on the same 
basis such leave would have been paid for under the provisions of 
section 501 (b) of title 37, United States Code, on the day prior to the 
first day of the second calendar month following the month in which 
this section is enacted. 
37 use 302 note. 
SEC. 305. The second sentence of section 2 of Public Law 93-274 
(88 Stat. 94) is amended by striking out that portion preceding 
; 
"authority for" and inserting in lieu thereof "The". 
TITLE IV—RESERVE FORCES 
SEC. 401. (a) For the fiscal year beginning October 1, 1976, the 
Selected Reserves of the Reserve components of the Armed Forces 
shall be programed to attain average strengths of not less than the 
following: 
PUBLIC LAW 94-361—JULY 14, 1976 
90 STAT. 927 
(1) The Army National Guard of the United States, 390,000; 
(2) The Army Reserve, 212,400; 
(3) The Naval Reserve, 96,500; 
(4) The Marine Corps Reserve, 33,500; 
(5) The Air National Guard of the United States, 93,300; 
(6) The Air Force Reserve, 52,000; 
(7) The Coast Guard Reserve, 11,700. 
(b) The average strength prescribed by subsection (a) of this sec-
tion for the Selected Reserve of any Reserve component shall be pro-
portionately reduced by (1) the total authorized strength of units 
organized to serve as units of the Selected Reserve of such component 
vs^hich are on active duty (other than for training) at any time during 
such fiscal year; and (2) the total number of individual members not 
in units organized to serve as units of the Selected Reserve of such 
component who are on active duty (other than for training or for 
unsatisfactory participation in training) without their consent at any 
time during such fiscal year. Whenever such units or such individual 
members are released from active duty during any fiscal year, the 
average strength prescribed for such fiscal year for the Selected 
Reserve of such Reserve component shall be proportionately increased 
by the total authorized strength of such units and by the total number 
of such individual members. 
Reduction in 
strength. 
T I T L E V—CIVILIAN P E R S O N N E L 
SEC. 501. (a) For the fiscal year beginning October 1, 1976, the 
Department of Defense is authorized an end strength for civilian per-
sonnel of 1,031,000. 
(b) The end strength for civilian persoimel prescribed in subsection 
(a) of this section shall be apportioned among the Department of the 
Army, the Department of the Navy, including the Marine Corps, the 
Department of the Air Force, and the agencies of the Department of 
Defense (other than the military departments) in such numbers as 
the Secretary of Defense shall prescribe. The Secretary of Defense 
shall report to the Congress within 60 days after the date of enact-
ment of this Act on the manner in which the allocation of civilian 
personnel is made among the military departments and the agencies 
of the Department of Defense (other than the military departments) 
and shall include the rationale for each allocation. 
(c) In computing the authorized end strength for civilian personnel, 
there shall be included all direct-hire and indirect-hire civilian per-
sonnel employed to perform military functions administered by the 
Department of Defense (other than those performed by the National 
Security Agency) whether employed on a full-time, part-time, or 
intermittent basis, but excluding special employment categories for 
students and disadvantaged youth such as the stay-in-school campaign, 
the temporary summer aid program and the Federal junior fellowship 
program and personnel participating in the worker-trainee opportu-
nity program. Whenever a function, power, duty, or activity is trans-
ferred or assigned to a department or agency of the Department of 
Defense from a department or agency outside of the Department of 
Defense or from another department or agency within the Department 
of Defense, the civilian personnel end strength authorized for such 
departments or agencies of the Department of Defense affected shall 
be adjusted to reflect any increases or decreases in civilian personnel 
I'equired as a result of such transfer or assignment. 
Report to 
Congress. 
89-194 O—78—pt. 1 
62 
90 STAT. 928 
PUBLIC LAW 94-361—JULY 14, 1976 
(d) When the Secretary of Defense determines that such action is 
necessary in the national interest, he may authorize the employment 
of civilian personnel in excess of the number authorized by subsection 
(a) of this section but such additional number may not exceed one-half 
of 1 per centum of the total number of civilian personnel authorized 
Notice to 
for the Department of Defense by subsection (a) of this section. The 
Congress. 
Secretary of Defense shall promptly notify the Congress of any author-
ization to increase civilian personnel strength under the authority of 
this subsection. 
TITLE VI—MILITARY TRAINING STUDENT LOADS 
SEC. 601. (a) For the fiscal year beginning October 1, 1976, the 
components of the Armed Forces are authorized average military 
training student loads as follows: 
(1) The Army, 81,429; 
(2) The Navy, 66,914; 
(3) The Marine Corps, 25.501; 
(4) The Air Force, 49,610; 
(5) The Army National Guard of the United States, 12,804; 
(6) The Army Reserve, 7,023; 
(7) The Naval Reserve, 1,257; 
- 
(8) The Marine Corps Reserve, 3,562; 
(9) The Air National Guard of the United States, 2,232; and 
(10) The Air Force Reserve, 1,107. 
(b) The average military training student loads for the Army, the 
Navy, the Marine Corps, and the Air Force and the Reserve compo-
nents authorized by subsection (a) for the fiscal year beginning Octo-
ber 1, 1976, shall be adjusted consistent with the manpower strengths 
authorized by titles III, IV, and V of this Act. Such adjustment shall 
be apportioned among the Army, the Navy, the Marine Corps, and the 
Air Force and the Reserve components in such manner as the Secretary 
of Defense shall prescribe. 
SEC. 602. Chapter 901 of title 10, United States Code, is amended by 
adding at the end thereof the following new section and inserting a 
corresponding item in the analysis of such chapter: 
10 use 9315. 
"§9315. Community College of the Air Force: associate degrees 
"(a) There is in the Air Force a Community College of the Air 
Force. Such college, in cooperation with civilian colleges and univer-
sities, shall— 
"(1) prescribe programs of higher education for enlisted mem-
bers of the armed forces designed to improve the technical, man-
agerial, and related skills of such members and to prepare such 
members for military jobs which require the utilization of such 
skills; and 
"(2) monitor on a continuing basis the progress of members 
pursuing such programs. 
"(b) Subject to subsection (c), the commander of the Air Training 
Command of the Air Force may confer an academic degree at the level 
of associate upon any enlisted member who has completed the program 
prescribed by the Community College of the Air Force. 
"(c) No degree may be conferred upon any enlisted member under 
this section unless (1) the Community College of the Air Force certi-
fies to the commander of the Air Force Training Command that such 
member has satisfied all the requirements prescribed for such degree, 
and (2) the Commissioner of Education of the Department of Health, 
PUBLIC LAW 94-361—JULY 14, 1976 
90 STAT. 929 
Education, and Welfare determines that the standards for the award 
of academic degrees in agencies of the United States have been met.". 
SEC. 603. (a) It is the policy of the United States that the United 46 USC 1126-L 
States Navy and the Merchant Marine of the United States work 
closely together to promote the maximum integration of the total sea-
powder forces of the Nation, In furtherance of this policy, it is necessary 
and desirable that special steps be taken to assure that Naval Reserve 
Officer Training Corps programs (for training future naval officers) 
be maintained at Federal and State merchant marine academies. 
(b) It is the sense of the Congress that the Secretary of the Navy 
should work Avith the Assistant Secretary of Commerce for Maritime 
Affair's and the administrators of the several merchant marine acad-
emies to assure that the training available at these academies is con-
sistent wnth Navy standards and needs. 
SEC. 604. The Act of November 24, 1951, Public Law 92-172 (85 37 USC209note. 
Stat. 491), is amended by striking out "1976" and inserting in lieu 
thereof "1977". 
TITLE VII—SUPPLEMENTAL AUTHORIZATION 
OF 
FUNDS FOR THE NAVY FOR FISCAL YEAR 1976 
SEC. 701. In addition to the funds authorized to be appropriated by 
the Department of Defense Appropriation Authorization Act, 1976, 89 Stat. 531. 
there is authorized to be appropriated to the Navy during the fiscal 
year 1976 for research, development, test, and evaluation, $8,000,000. 
TITLE VIII—GENERAL PROVISIONS 
SEC. 801. (a) The second sentence of section 1401a(b) of title 10, 
United States Code, is amended by striking out "the per centum 
obtained by adding 1 per centum and". 
(b) The second sentence of paragraph (2) of section 291(a) of the 
Central Intelligence Agency Retirement Act of 1964 for Certain 
Employees (78 Stat. 1043; 50 U.S.C. 403 note) is amended by striking 
out "1 per centum plus". 
(c) (1) The amendments made by subsections (a) and (b) shall not 10 USC 1401a -
become effective unless legislation is enacted repealing the so-called 1 note. 
per centum add-on provision applicable to the cost-of-living adjust-
ment of annuities paid under chapter 83 of title 5, United States Code. 5 USC 8301 
In the event such legislation is enacted, such amendments shall become ^'^ *
«
?
• 
effective with respect to the cost-of-living adjustment of the retired 
pay and retainer pay of members and former members of the Armed 
Forces and the cost-of-living adjustment of annuities paid under the 
Central Intelligence Agency Act of 1964 for Certain Employees at the 50 USC 403 note, 
same time the repeal of such 1 per centum add-on provision becomes 
effective with respect to such cost-of-living adjustment of annuities 
paid under such chapter 83. 
(2) If any change other than the repeal of the so-called 1 per 
centum add-on provision referred to in paragraph (1) is made in the 
method of computing the cost-of-living adjustment of annuities paid 
under chapter 83 of title 5, United States Code, the President shall 
make the same change in the cost-of-living adjustment of retired pay 
and retainer pay of members and former members of the Armed Forces 
and the cost-of-living adjustment of annuities paid under the Central 
Intelligence Agency Act of 1964 for Certain Employees. Any change 
made under this paragraph shall have the same effective date as the 
90 STAT. 930 
PUBLIC LAW 94-361—JULY 14, 1976 
5 use 8301 
et seq. 
89 Stat. 540. 
Standardized or 
interoperable 
equipment. 
Report to 
Congress. 
89 Stat. 531. 
Report to 
Congress. 
88 Stat. 402. 
NATO members, 
standardized or 
interoperable 
weapons and 
equipment. 
effective date applicable to such change made in annuities under 
chapter 83 of title 5, United States Code. 
(3) The provisions of paragraphs (1) and (2) relating to any 
change in the method of computing the cost-of-living adjustment of 
the retired pay or retainer pay of members and former members of 
the Armed Forces shall be applicable to the computation of cost-of-
living adjustments of the retired pay of commissioned officers of the 
National Oceanic and Atmospheric Administration and the retired 
pay of commissioned officers of the Public Health Service. 
SEC. 802. Section 814(a) of the Department of Defense Appropria-
tion Authorization Act, 1976 (89 Stat. 544), is amended to read as 
follows: 
"(a)(1) It is the policy of the United States that equipment procured 
for the use of personnel of the Armed Forces of the United States 
stationed in Europe under the terms of the North Atlantic Treaty 
should be standardized or at least interoperable with equipment of 
other members of the North Atlantic Treaty Organization. In carry-
ing out such policy the Secretary of Defense shall, to the maximum 
feasible extent, initiate and carry out procurement procedures that 
provide for the acquisition of equipment which is standardized or 
interoperable wath equipment of other members of the North Atlantic 
Treaty Organization whenever such equipment is to be used by per-
sonnel of the Armed Forces of the United States stationed in Europe 
under the terms of the North Atlantic Treaty. Such procedures shall 
also take into consideration the cost, functions, quality, and avail-
ability of the equipment to be procured. In any case in which equipment 
authorized to be procured under title I of this Act is utilized for the 
purpose of carrying out the foregoing policy, the Secretary of Defense 
shall report to Congress the full details of the nature and substance 
of any and all agreements entered into by tlie United States with any 
other member or members of the North Atlantic Treaty Organization 
providing for the acquisition of equipment manufactured outside the 
United States in exchange for, or as a part of, any other agreement 
by such member or members to acquire equipment manufactured in 
the United States. Such report shall be made by the Secretary within 
30 days of the date of enactment of this Act. 
"(2) Whenever the Secretary of Defense determines that it is neces-
sary, in order to carry out the policy expressed in paragraph (1) of 
this subsection, to procure equipment manufactured outside the United 
States, he is authorized to determine, for the purposes of section 2 of 
title III of the Act of March 3, 1933 (47 Stat. 1520; 41 U.S.C. 10a), 
that the acquisition of such equipment manufactured in the United 
States is inconsistent with the public interest. 
"(3) In any case in which the Secretary of Defense initiates pro-
curement action on a new major system which is not standard or inter-
operable with equipment of other members of the North Atlantic 
Treaty Organization, he shall report that fact to the Congress in the 
annual report required under section 302(c) of Public Law 93-365, as 
amended, including a description of the system to be procured and 
the reasons for that choice.". 
SEC. 803. (a) It is the sense of Congress that weapons systems being 
developed wholly or primarily for employment in the North Atlantic 
Treaty Organization theater shall conform to a common North 
Atlantic Treaty Organization requirement in order to proceed toward 
joint doctrine and planning and to facilitate maximum feasible stand-
ardization and interoperability of equipment. A common North 
PUBLIC LAW 94-361—JULY 14, 1976 
90 STAT. 931 
Atlantic Treaty Organization requirement shall be understood to 
include a common definition of the military threat to the North 
Atlantic Treaty Organization countries. The Secretary of Defense 
shall, in the reports required by section 302(c) of Public Law 93-365, 
as amended, identify those programs in research and development 88 Stat. 402. 
for United States forces in Europe and the common North Atlantic 
Treaty Organization requirements which such programs support. In 
the absence of such common requirement, the Secretary shall include a 
discussion of the actions taken within the North Atlantic Alliance 
in pursuit of a common requirement. The Secretary of Defense shall 
also report on eiforts to establish a regular procedure and mechanism 
within the North Atlantic Treaty Organization for determining 
common military requirements. 
^ 
(b) It is the sense of the Congress that progress toward the realiza- 
• 
tion of the objectives of standardization and interoperability would 
be enhanced by expanded inter-Allied procurement of arms and equip-
ment within the North Atlantic Treaty Organization. It is further 
the sense of the Congress that expanded inter-Allied procurement 
would be facilitated by greater reliance on licensing and coproduction 
agreements among the signatories of the North Atlantic Treaty. It is 
the Congress' considered judgment that such agreements, if properly 
constructed so as to preserve the efficiencies associated with economies 
of scale, could not only minimize potential economic hardship to par-
ties to such agreements but also increase the survivability, in time of 
war, of the Alliance's armaments production base by dispersing manu- 
,,. 
facturing facilities. Accordingly, the Secretary of Defense, in con-
junction with appropriate representatives of other members of the 
Alliance, shall attempt to the maximum extent feasible (1) to identify 
areas for such cooperative arrangements and (2) to negotiate such 
agreements pursuant to these ends. The Secretary of Defense shall 
include in the report to the Congress required by section 302(c) of 
Public Law 93-365, as amended, a discussion of the specific assess-
ments made under the above provisions and the results achieved with 
the North Atlantic Treaty Organization allies. 
(c) It is the sense of the Congress that standardization of weapons 
and equipment within the North Atlantic Alliance on the basis of a 
"two-way street" concept of cooperation in defense procurement 
between Europe and North America could only work in a realistic 
sense if the European nations operated on a united and collective basis. 
Accordingly, the Congress encourages the governments of Europe to 
accelerate their present efforts to achieve European armaments collabo-
ration among all European members of the Alliance. 
SEC. 804. (a) Section 2 of the Federal Civil Defense Act of 1950 (50 
U.S.C. App. 2251) is amended by inserting after the third sentence 
thereof a new sentence as follows: "The Congress recognizes that the 
organizational structure established jointly by the Federal Govern-
ment and the several States and their political subdivisions for civil 
defense purposes can be effectively utilized, without adversely affect-
ing the basic civil defense objectives of this Act, to provide relief and 
assistance to people in areas of the United States struck by disasters 
other than disasters caused by enemy attack.". 
(b) Section 408 of such Act (50 U.S.C. App. 2260) is amended by 
striking out the first sentence and inserting in lieu thereof the follow-
ing: "There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this Act in the fiscal year end-
ing September 30, 1977. No funds may be appropriated for any fiscal 
90 STAT. 932 
PUBLIC LAW 94-361—JULY 14, 1976 
Emergency 
assistance. 
Technical data 
and computer 
software 
procurement. 
10 use 2306 
note. 
Report to 
congressional 
committees. 
Definitions. 
year beginning after September 30,1977, for carrying out the purpose 
of this Act, unless such funds have been authorized for such purpose 
by legislation enacted after the date of enactment of the Department 
of Defense Appropriations Authorization Act, 1977.". 
(c) Section 201 of such Act (50 U.S.C. App. 2281) is amended— 
(1) by striking out in subsection (e) ^'•Provided further, 
That 
the authority to pay travel and per diem expenses of students as 
authorized by this subsection shall terminate on June 30, 1976."; 
and 
(2) by striking out in the fourth proviso of subsection (h) 
"until June 30,1976,". 
(d) Subsection (h) of section 205 of such Act (50 U.S.C. App. 
2286 (h)) is amended to read as follows: 
"(h) Funds made available to the States under this Act may be 
used, to the extent and under such terms and conditions as shall be 
prescribed by the Administrator, for providing emergency assistance, 
including civil defense personnel, organizational equipment, materials, 
and facilities, in any area of the United States which suffers a disaster 
other than a disaster caused by an enemy attack.". 
SEC. 805. (a) During the period beginning on October 1, 1976, and 
ending on September 30, 1978, each contract entered into by a mili-
tary department for development or procurement of a major system 
shall, except as provided in subsection (b), include a deferred ordering 
clause giving the procuring authority for such system the option to 
purchase from the contractor involved technical data and computer 
software packages relating to such system. Such clause shall require 
such packages to be in sufficient detail to enable such procuring author-
ity to reprocure such system, or a subsystem of such system, from a 
contractor other than the contractor involved in such contract. 
(b) Any procuring authority to whom subsection (a) applies may 
exempt a particular contract for development or procurement of a 
major system from the requirements of such subsection, but, prior to 
the time any such contract without the deferred ordering clause 
required by such subsection is entered into, the procuring authority con-
cerned shall report his intent to enter into such contract to the 
Committees on Armed Services and Appropriations of the Senate 
and House of Representatives with a detailed explanation for such 
exemption. 
(c) For the purposes of this section: 
(1) The term "major system" means a composite of equipment, 
skills, and techniques which is capable of performing, or support-
ing performance of, an operational role and which requires an 
investment in research, design, test, and evaluation of not less 
than $50,000,000 or a total production investment of not less 
than $200,000,000. 
(2) The term "deferred ordering" means delaying the ordering 
of an item related to a contract until a need for such item is estab-
lished and the requirements for such item can be specifically identi-
fied for delivery under such contract. 
(3) The term "technical data" means, with respect to a major 
system, recorded data, regardless of form or characteristic, of a 
scientific or technical nature which is related to such system. 
SEC. 806. The President shall include in the budget for fiscal year 
1978 a request for funds sufficient to meet the total operation and 
maintenance costs of the Department of Defense for such year, includ-
ing reasonably foreseeable increases in both the private and public 
sectors in the cost of labor, material, and other goods and services. 
PUBLIC LAW 94-361—JULY 14, 1976 
90 STAT. 933 
SEC. 807. Section 2031 (a) of title 10, United States Code, is amended 
by striking out "1,200" in the second sentence and inserting in lieu 
thereof "1,600" and by striking out the period at the end and inserting 
in lieu thereof a comma and the following: "except that more than 
one such unit may be established and maintained at any military 
institute.". 
SEC. 808. It is the sense of the Congress that the Secretary of the 
Navy shall not take action with respect to closing, disestablishing, or 
terminating any Naval Keserve Training Center or Facility which 
was in active use on March 1, 1976, until legislation providing funds 
for the Selected Reserve of the Naval Reserve for fiscal year 1977 has 
been enacted into law-
SEC. 809. The Secretary of Defense shall conduct a study to deter-
mine whether greater utilization of civilian faculty may be desirable 
at the service academies and intermediate and senior war colleges. 
Such study shall identify those subjects in the curriculums of such 
academies and colleges which are classified as being in the general 
academic area. The results of such study shall be submitted to the 
Committees on Armed Services of the Senate and House of Repre-
sentatives not later than February 28, 1977. 
SEC. 810. Notwithstanding any other provision of law, the Secretary 
of the Navy is authorized to assign Rear Admiral J. Edward Snyder, 
Jr. (retired), to a command status as the Oceanographer of the Navy 
for a period not to exceed three years from the date of enactment of 
this Act. 
SEC. 811. (a) (1) The Congress hereby finds and declares that— 
(A) the Armed Forces Institute of Pathology offers unique 
pathologic support to national and international medicine; 
(B) the Institute contains the Nation's most comprehensive 
collection of pathologic specimens for study and a staff of pres-
tigious pathologists engaged in consultation, education, and 
research; 
(C) the activities of the Institute are of unique and vital 
importance in support of the health care of the Armed Forces of 
the United States; 
(D) the activities of the Institute are also of unique and vital 
importance in support of the civilian health care system of the 
United States; 
(E) the Institute provides an important focus for the exchange 
of information between civilian and military medicine, to the 
benefit of both; and 
(F) it is important to the health of the American people and 
of the members of the Armed Forces of the United States that 
the Institute continue its activities in serving both the military 
and civilian sectors in education, consultation, and research in the 
medical, dental, and veterinary sciences. 
(2) The Congress further finds and declares that beneficial coopera-
tive efforts between private individuals, professional societies, and 
other entities on the one hand and the Armed Forces Institute of 
Pathology on the other can be carried out most effectively through the 
establishment of a private corporation. 
(b) Chapter 7 of title 10, United States Code, is amended by adding 
at the end thereof the following new sections: 
"§ 176. Armed Forces Institute of Pathology 
"(a) (1) There is in the Department of Defense an Institute to be 
known as the Armed Forces Institute of Pathology (hereinafter in 
Naval Reserve 
Training Centers 
or Facilities. 
Civilian faculty, 
utilization, study. 
Submittal to 
congressional 
committees. 
Oceanographer of 
the Navy. 
10 u s e 176 note. 
10 u s e 176. 
Establishment. 
90 STAT. 934 
PUBLIC LAW 94-361—JULY 14, 1976 
Membership. 
Contract 
authority. 
Regulations. 
10 use 177. 
Estabhshment 
authorization. 
this section referred to as the 'Institute'), which has the responsibili-
ties, functions, authority, and relationships set forth in this section. 
The Institute shall be a joint entity of the three military departments, 
subject to the authority, direction, and control of the Secretary of 
Defense. 
"(2) The Institute shall consist of a Board of Governors, a Director, 
two Deputy Directors, and a staff of such professional, technical, and 
clerical personnel as may be required. 
"(3) The Board of Governors shall consist of the Assistant Secre-
tary of Defense for Health Affairs, who shall serve as chairman of the 
Board of Governors, the Assistant Secretary of Health, Education, 
and Welfare for Health, the Surgeons General of the Army, Navy, 
and Air Force, the Chieif Medical Director of the Veterans' Adminis-
tration, and a former Director of the Institute, as designated by the 
Secretary of Defense, or the designee of any of the foregoing. 
"(4) The Director and the Deputy Directors shall be appointed by 
the Secretary of Defense. 
"(b) (1) In carrying out the provisions of this section, the Institute 
is authorized to—• 
" (A) contract with the American Registry of Pathology (estab-
lished under section 177) for cooperative enterprises in medical 
research, consultation, and education between the Institute and 
the civilian medical profession under such conditions as may be 
agreed upon between the Board of Governors and the American 
Registry of Pathology; 
"(B) make available at no cost to the American Registry of 
Pathology such space, facilities, equipment, and support services 
within the Institute as the Board of Governors deems necessary 
for the accomplishment of their mutual cooperative enterprises; 
and 
"(C) contract with the American Registry of Pathology for 
the services of such professional, technical, or clerical personnel 
as are necessary to fulfill their cooperative enterprises. 
"(2) No contract may be entered into under paragraph (1) which 
obligates the Institute to make outlays in advance of the enactment of 
budget authority for such outlays. 
"(c) The Director is authorized, with the approval of the Board of 
Governors, to enter into agreements with the American Registry of 
Pathology for the services at any time of not more than six distin-
guished pathologists or scientists of demonstrated ability and experi-
ence for the purpose of enhancing the activities of the Institute in 
education, consultation, and research. Such pathologists or scientists 
may be appointed by the Director to administrative positions within 
the components or subcomponents of the Institute and may be author-
ized by the Director to exercise any or all professional duties within 
the Institute, notwithstanding any other provision of law. 
"(d) The Secretary of Defense shall promulgate such regulations 
as may be necessary to prescribe the organization, functions, and 
responsibilities of the Institute. 
"§ 177. American Registry of Pathology 
"(a) (1) There is authorized to be established a nonprofit corpora-
tion to be known as the American Registry of Pathology which shall 
not for any purpose be an agency or establishment of the United States 
Government. The American Registry of Pathology shall be subject to 
the provisions of this section and, to the extent not inconsistent with 
PUBLIC LAW 94-361—JULY 14, 1976 
90 STAT. 935 
Board of 
Members. 
this section, to the District of Columbia Nonprofit Corporation Act 
(D.C. Code, sec. 29-1001 et seq.). 
"(2) The American Registry of Pathology shall have a Board of 
Members (hereinafter in this section referred to as the 'Board') con-
sisting of not less than eleven individuals who are representatives of 
those professional societies and organizations which sponsor individ-
ual registries of pathology at the Armed Forces Institute of Pathology, 
of whom one shall be elected annually by the Board to serve as chair-
man. Each such sponsor shall appoint one member to the Board for 
a term of four years. 
" (3) The American Registry of Pathology shall have a Director, who 
shall be appointed by the Board with the concurrence of the Director 
of the Armed Forces Institute of Pathology, and such other officers as 
may be named and appointed by the Board. Such officers shall be com-
pensated at rates fixed by the Board and shall serve at the pleasure of 
the Board. 
"(4) The members of the initial Board shall serve as incorporators 
and shall take whatever actions are necessary to establish under the 
District of Columbia Nonprofit Corporation Act the corporation 
authorized by paragraph (1). 
"(5) The term of office of each member of the Board shall be four Term, 
years, except that (A) any member appointed to fill a vacancy occur-
ring prior to the expiration of the term for which his predecessor was 
appomted shall be appointed for the remainder of such term, (B) the 
terms of office of members first taking office shall begin on the date of 
incorporation and shall expire, as designated at the time of their 
appointment and to the maximum extent practicable, one fourth at the 
end of one year, one fourth at the end of two years, one fourth at the 
end of three years, and one fourth at the end of four years, and (C) 
a member whose term has expired may serve until his successor has 
qualified. No member shall be eligible to serve more than two consecu-
tive terms of four years each. 
"(6) Any vacancy in the Board shall not affect its powers, but such 
vacancy shall be filled in the manner in which the original appoint-
ment was made. 
"(b) In order to carry out the purposes of this section, the American Functions 
Registry of Pathology is authorized to— 
"(1) enter into contracts with the Armed Forces Institute of 
Pathology for the provision of such services and personnel as may 
be necessary to carry out their cooperative enterprises; 
"(2) enter into contracts with public and private organizations 
for the writing, editing, printing, and publishing of fascicles of 
tumor pathology, atlases, and other material; 
"(3) accept gifts and grants from and enter into contracts with 
individuals, private foundations, professional societies, institu-
tions, and governmental agencies; 
"(4) enter into agreements with professional societies for the 
establishment and maintenance of Registries of Pathology; and 
"(5) serve as a focus for the interchange between military and 
civilian pathology and encourage the participation of medical, 
dental, and veterinary sciences in pathology for the mutual benefit 
of military and civilian medicine. 
" (c) In the performance of the functions set forth in subsection (b), 
the American Registry of Pathology is authorized to— 
"(1) enter into such other contracts, leases, cooperative agree-
ments, or other transactions as the Board deems appropriate to 
90 STAT. 936 
PUBLIC LAW 94-361—JULY 14, 1976 
conduct the activities of the American Kegistry of Pathology; 
and 
"(2) charge such fees for professional services as the Board 
deems reasonable and appropriate. 
"(d) The American Eegistry of Pathology may transmit to the 
Director and the Board of Governors of the Armed Forces Institute 
of Pathology and to the sponsors referred to in subsection (a) (2) 
annually, and at such other times as it deems desirable, a comprehen-
sive and detailed report of its operations, activities, and accomplish-
ments.". 
(c) The table of sections at the beginning of chapter 7 of title 10, 
United States Code, is amended by adding at the end thereof the 
following: 
"176. Armed Forces Institute of Pathology. 
"177. American Registry of Pathology.". 
Short title. 
SEC. 812. This Act may be cited as the "Department of Defense 
Appropriation Authorization Act, 1977". 
^ 
Approved July 14, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-967 (Comm. on Armed Services) and No. 94-1305 (Comm. of 
Conference). 
SENATE REPORTS: No. 94-878 (Comm. on Armed Services) and No. 94-1004 (Comm. 
of Conference). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
Apr. 8, 9, considered and passed House. 
May 20, 24-26, considered and passed Senate, amended. 
June 30, House agreed to conference report. . 
July 1, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 29: 
July 14, Presidential statement.