Military

                                     57 992                                 
                                       1999                                  
                          106 th Congress  1st Session                      
                            HOUSE OF REPRESENTATIVES                        
                                      Report                                 
                                      106 244                                 
                                                                         
                          DEPARTMENT OF DEFENSE                          
                        APPROPRIATIONS BILL, 2000                        
                                  REPORT                                 
                                  of the                                 
                       COMMITTEE ON APPROPRIATIONS                       
                              together with                              
                             ADDITIONAL VIEWS                            
                         [To accompany H.R. 2561]                        
[Graphic Image Not Available]
   July 20, 1999.--Committed to the Committee of the Whole House on the  
 State of the Union and ordered to be printed                            
                            C O N T E N T S                             
         Bill Totals                                                                   1
         Committee Budget Review Process                                               4
            Introduction                                                               4
            Basis for Committee Recommendations                                        5
            The President's Fiscal Year 2000 2005 Defense Program                      5
            Neglect of Traditional Appropriations and Acquisition Program Practices    8
            ``Lessons Learned'' from Recent Military Operations                        10
            Shortages of Low-Density, High Demand Assets                               13
            United States Air Force--At a Crossroads?                                  13
            Air Force Modernization Issues                                             16
    22                                                                     
        17                                                                      
    22 Concerns                                                            
        17                                                                      
   Potential Alternatives                                                  
        19                                                                      
   Major Committee Recommendations                                         
        20                                                                      
          Air Force Program Reprioritization                            
        20                                                                      
                    Ensuring ``Lessons Learned'' Are Incorporated into  
          FY 2001 2006 Defense Planning                                 
        21                                                                      
          Ensuring Appropriations Process Integrity                     
        22                                                                      
          Multiyear Procurement                                         
        22                                                                      
          Addressing High Priority Shortfalls                           
        22                                                                      
          Ensuring a Quality Ready Force                                
        23                                                                      
          Modernization Programs                                        
        23                                                                      
          Reforms/Program Reductions                                    
        24                                                                      
          Tactical Reconnaissance                                       
        25                                                                      
          Information Assurance                                         
        26                                                                      
          Preparedness Against WMD Terrorist Attacks                    
        26                                                                      
   Committee Recommendations by Major Category                             
        28                                                                      
          Active Military Personnel                                     
        28                                                                      
          Guard and Reserve                                             
        28                                                                      
          Operation and Maintenance                                     
        28                                                                      
          Procurement                                                   
        28                                                                      
          Research, Development, Test and Evaluation                    
        29                                                                      
   Forces to be Supported                                                  
        29                                                                      
          Department of the Army                                        
        29                                                                      
          Department of the Navy                                        
        30                                                                      
          Department of the Air Force                                   
        31                                                                      
   Title I, Military Personnel                                             
        33                                                                      
                    Programs and Activities Funded by Military Personnel
          Appropriations                                                
        33                                                                      
          Summary of Military Personnel Recommendations for FY2000      
        33                                                                      
   Overall Active End Strength                                             
        34                                                                      
   Overall Selected Reserve End Strength                                   
        34                                                                      
          Adjustments to Military Personnel Account                     
        35                                                                      
   Overview                                                                
        35                                                                      
   End Strength Adjustments                                                
        35                                                                      
   Pay and Retirement Reform                                               
        35                                                                      
   Basic Allowance for Housing                                             
        36                                                                      
   Aviation Continuation Pay                                               
        36                                                                      
   Unfunded Requirements                                                   
        36                                                                      
   JROTC Leadership Training                                               
        36                                                                      
   Quality of Life Study                                                   
        37                                                                      
   Guard and Reserve Forces                                                
        37                                                                      
   Full-Time Support Strengths                                             
        38                                                                      
   Guard and Reserve Full-Time End Strengths                               
        38                                                                      
          Military Personnel, Army                                      
        38                                                                      
          Military Personnel, Navy                                      
        40                                                                      
   AOE 1 Replenishment Ships                                               
        42                                                                      
          Military Personnel, Marine Corps                              
        42                                                                      
   Marine Corps Security Guards Detachments                                
        44                                                                      
          Military Personnel, Air Force                                 
        44                                                                      
          Reserve Personnel, Army                                       
        46                                                                      
          Reserve Personnel, Navy                                       
        48                                                                      
          Reserve Personnel, Marine Corps                               
        50                                                                      
          Reserve Personnel, Air Force                                  
        52                                                                      
   Test Support Mission                                                    
        54                                                                      
          National Guard Personnel, Army                                
        54                                                                      
   Army National Guard Workyear Requirements                               
        56                                                                      
          National Guard Personnel, Air Force                           
        56                                                                      
   Title II, Operation and Maintenance                                     
        59                                                                      
          Operation and Maintenance Overview                            
        62                                                                      
   Rotational Training Initiatives                                         
        63                                                                      
   Real Property Maintenance                                               
        63                                                                      
   Base Operations Support                                                 
        64                                                                      
   Depot Maintenance                                                       
        64                                                                      
   Spares and War Reserve Materiel                                         
        65                                                                      
   Force Protection Initiatives                                            
        65                                                                      
   Soldier Support Initiatives                                             
        66                                                                      
   Operating Tempo Funding                                                 
        66                                                                      
   Recruiting and Advertising                                              
        66                                                                      
   Small Business Advertising                                              
        67                                                                      
   Guard and Reserve Unfunded Requirements                                 
        67                                                                      
   Army Training Area Environmental Management                             
        67                                                                      
   Headquarters and Administrative Expenses                                
        67                                                                      
   Consultants and Advisory Services                                       
        68                                                                      
   Communications Services                                                 
        68                                                                      
   Security Programs                                                       
        68                                                                      
   Defense Finance and Accounting Service                                  
        69                                                                      
   Acquisition Contracting and Travel                                      
        69                                                                      
   Operation and Maintenance Budget Execution Data                         
        69                                                                      
   Operation and Maintenance Reprogrammings                                
        69                                                                      
   A 76 Studies                                                            
        70                                                                      
   Urban Warfare                                                           
        71                                                                      
   Controlled Humidity Preservation Program                                
        71                                                                      
          Operation and Maintenance, Army                               
        71                                                                      
   Logistics and Technology Project                                        
        74                                                                      
   Government-Owned, Contractor-Operated (GOCO) Facilities                 
        75                                                                      
   Humanitarian Airlift Aircraft                                           
        75                                                                      
   National Training Center Heliport Security                              
        75                                                                      
   Memorial Events                                                         
        75                                                                      
   General Purpose Tents                                                   
        76                                                                      
   Abrams Integrated Management Program                                    
        76                                                                      
   Information Technology Programs                                         
        76                                                                      
          Operation and Maintenance, Navy                               
        76                                                                      
   Oceanographic Research                                                  
        81                                                                      
   Naval Weapons Station Concorde                                          
        81                                                                      
   Portable Firefighting Equipment                                         
        82                                                                      
   Vieques Range Complex, Puerto Rico                                      
        82                                                                      
   Naval Air Station (NAS) LeMoore                                         
        82                                                                      
   Navy Electricity and Electronics Training Series                        
        83                                                                      
          Operation and Maintenance, Marine Corps                       
        83                                                                      
   Blount Island                                                           
        85                                                                      
          Operation and Maintenance, Air Force                          
        85                                                                      
   Interim Contractor Support                                              
        89                                                                      
   Manufacturing Technology Assistance Pilot Program                       
        90                                                                      
   McClellan Air Force Base                                                
        90                                                                      
   Enterprise Integration Program                                          
        90                                                                      
   REMIS                                                                   
        90                                                                      
          Operation and Maintenance, Defense-Wide                       
        90                                                                      
   Performance Measures                                                    
        92                                                                      
   DLA Warstoppers                                                         
        93                                                                      
   Defense Acquisition University                                          
        93                                                                      
   Family Therapy Program                                                  
        93                                                                      
   Defense Finance and Accounting Service                                  
        93                                                                      
   Information Technology Programs                                         
        93                                                                      
   DLA Security Locks                                                      
        93                                                                      
   DLA Improved Cargo Methods                                              
        94                                                                      
   DTRA Treaty Implementation                                              
        94                                                                      
   Joint Chiefs of Staff (JCS)-Management Support                          
        94                                                                      
   JCS J MEANS                                                             
        94                                                                      
   OSD C4ISR                                                               
        94                                                                      
   OSD Near East/South Asia Center for Security Studies                    
        94                                                                      
   OSD Middle East Regional Security Issues                                
        95                                                                      
   OSD Energy Savings Performance Contracts                                
        95                                                                      
   OSD Job Placement Program                                               
        95                                                                      
   OSD Youth Development and Leadership Program                            
        95                                                                      
   OSD Youth Development Initiative                                        
        95                                                                      
   OSD Management and Contract Support                                     
        95                                                                      
   WHS Emergency Notification                                              
        95                                                                      
   JCS Mobility Enhancements                                               
        95                                                                      
   National Curation Pilot Project                                         
        96                                                                      
   Information Systems Security Education                                  
        96                                                                      
   Improved General Purpose Tents                                          
        96                                                                      
   Department of Defense Education Activity                                
        97                                                                      
   Pine Bluff Arsenal Sustainment Training and Technical Assistance Program
        97                                                                      
   Legacy                                                                  
        97                                                                      
   Classified Program                                                      
        97                                                                      
          Operation and Maintenance, Army Reserve                       
        99                                                                      
          Operation and Maintenace, Navy Reserve                        
        99                                                                      
          Operation and Maintenance, Marine Corps Reserve               
        99                                                                      
          Operation and Maintenance, Air Force Reserve                  
        103                                                                     
          Operation and Maintenance, Army National Guard                
        105                                                                     
   Army National Guard Center                                              
        107                                                                     
   Armed Forces Reserve Center                                             
        107                                                                     
   National Guard Bureau Nationwide Fiber Optics Network                   
        107                                                                     
   National Guard Distance Learning                                        
        107                                                                     
   NGB Project Management System                                           
        107                                                                     
   Repair of UH 1 Engines                                                  
        108                                                                     
   Moffett Field and March Air Reserve Base                                
        108                                                                     
          Operation and Maintenance, Air National Guard                 
        108                                                                     
   National Guard State Partnership Program                                
        111                                                                     
   C 130 Operations                                                        
        111                                                                     
   159th Air National Guard Fighter Group                                  
        111                                                                     
          Overseas Contingency Operations Transfer Fund                 
        111                                                                     
   Budget Justification and Budget Execution Materials                     
        111                                                                     
   Kosovo Base Camp Construction                                           
        112                                                                     
          United States Court of Appeals for the Armed Forces           
        112                                                                     
          Environmental Restoration, Army                               
        112                                                                     
   Rocky Mountain Arsenal                                                  
        113                                                                     
   Environmental Remediation Contracts                                     
        113                                                                     
          Environmental Restoration, Navy                               
        113                                                                     
          Environmental Restoration, Air Force                          
        113                                                                     
          Environmental Restoration, Defense-Wide                       
        113                                                                     
          Environmental Restoration, Formerly Used Defense Sites        
        114                                                                     
   Camp Croft                                                              
        114                                                                     
   Lake City Army Ammunition Plant                                         
        114                                                                     
   Newmark                                                                 
        114                                                                     
          Overseas Humanitarian, Disaster, and Civic Aid                
        115                                                                     
          Former Soviet Union Threat Reduction                          
        115                                                                     
          Quality of Life Enhancements, Defense                         
        116                                                                     
   Title III, Procurement                                                  
        117                                                                     
          Estimates and Appropriations Summary                          
        117                                                                     
   Special Interest Items                                                  
        119                                                                     
   Classified Programs                                                     
        119                                                                     
   Rangeless Training                                                      
        119                                                                     
   Foreign Comparative Test New Starts                                     
        119                                                                     
   Air Force Interim Contractor Support                                    
        119                                                                     
   Reprogramming Procedures                                                
        120                                                                     
          Army Procurement Issues                                       
        120                                                                     
   Unfunded Requirements List                                              
        120                                                                     
          Aircraft Procurement, Army                                    
        121                                                                     
   Apache A Model Readiness                                                
        122                                                                     
          Missile Procurement, Army                                     
        124                                                                     
          Procurement of Weapons and Tracked Combat Vehicles, Army      
        126                                                                     
          Procurement of Ammunition, Army                               
        128                                                                     
   Program Manager for Ammunition                                          
        128                                                                     
   Self-Destruct Fuzes                                                     
        129                                                                     
          Other Procurement, Army                                       
        132                                                                     
   Family of Medium Tactical Vehicles                                      
        134                                                                     
   Information Technology Programs                                         
        134                                                                     
   Tactical Unmanned Aerial Vehicle (TUAV)                                 
        134                                                                     
          Aircraft Procurement, Navy                                    
        142                                                                     
   V 22 Aircraft                                                           
        143                                                                     
   KC 130J Aircraft                                                        
        143                                                                     
   Joint Primary Aircraft Training System                                  
        144                                                                     
   EA 6B Aircraft                                                          
        144                                                                     
   Consolidated Automated Support System                                   
        145                                                                     
   Advanced Tactical Airborne Reconnaissance System (ATARS)                
        146                                                                     
      Tactical Airborne Reconnaissance Pod System-Completely Digital       
   (TARPS-CD)                                                              
        146                                                                     
   Rescissions                                                             
        147                                                                     
          Weapons Procurement, Navy                                     
        149                                                                     
   JSOW                                                                    
        149                                                                     
   Rescissions                                                             
        149                                                                     
          Procurement of Ammunition, Navy and Marine Corps              
        151                                                                     
          Shipbuilding and Conversion, Navy                             
        153                                                                     
   Post Delivery Test and Trials                                           
        153                                                                     
   Rescissions                                                             
        153                                                                     
          Other Procurement, Navy                                       
        155                                                                     
   Pollution Control Equipment                                             
        156                                                                     
   Rescissions                                                             
        157                                                                     
          Procurement, Marine Corps                                     
        163                                                                     
          Aircraft Procurement, Air Force                               
        167                                                                     
    22                                                                     
        168                                                                     
    15                                                                     
        168                                                                     
    16                                                                     
        169                                                                     
   C 130J                                                                  
        169                                                                     
    8C                                                                     
        170                                                                     
   C 135 Modifications                                                     
        170                                                                     
    15 Modifications                                                       
        171                                                                     
   T 38 Modifications                                                      
        171                                                                     
          Missile Procurement, Air Force                                
        176                                                                     
   Minuteman III Guidance Replacement Program                              
        176                                                                     
   JSOW                                                                    
        177                                                                     
   Titan                                                                   
        177                                                                     
          Procurement of Ammunition, Air Force                          
        180                                                                     
          Other Procurement, Air Force                                  
        182                                                                     
          Procurement, Defense-Wide                                     
        187                                                                     
   Electronic Commerce Resource Centers                                    
        187                                                                     
   Information Technology Programs                                         
        188                                                                     
   Classified Programs                                                     
        188                                                                     
          National Guard and Reserve Equipment                          
        191                                                                     
   Fire Fighting                                                           
        191                                                                     
   Support to Non-Profit Agencies                                          
        192                                                                     
          Defense Production Act Purchases                              
        194                                                                     
          Information Technology                                        
        194                                                                     
   Year 2000 (Y2K) Computer Problem                                        
        195                                                                     
   Year 2000 (Y2K) Lessons Learned                                         
        195                                                                     
   Inadequate Information Technology Oversight                             
        196                                                                     
   Defense Joint Accounting System                                         
        197                                                                     
   Information Technology Oversight-Committee Recommendations              
        197                                                                     
   Financial Management Regulations                                        
        198                                                                     
   Standard Procurement System                                             
        199                                                                     
   Armor Officer Distance Learning                                         
        199                                                                     
   Power Projection C4 Infrastructure                                      
        199                                                                     
   Supercomputing Work                                                     
        199                                                                     
   Electricity and Electronics Training Series                             
        199                                                                     
   IMDS/REMIS                                                              
        199                                                                     
   DIMHRS                                                                  
        199                                                                     
   National Guard Bureau Nationwide Fiber Optics Network                   
        200                                                                     
   National Guard Distance Learning                                        
        200                                                                     
   Maintenance Automated Identification Technology                         
        200                                                                     
   Global Combat Support System--Army                                      
        200                                                                     
   Ammunition Automated Identification Technology                          
        201                                                                     
   National Guard Distance Learning-Courseware                             
        201                                                                     
   Joint Systems Education and Training Systems Development                
        201                                                                     
   Service Information Infrastructure Shortfalls                           
        201                                                                     
   Share in Savings                                                        
        201                                                                     
   Title IV, Research, Development, Test and Evaluation                    
        203                                                                     
          Estimates and Appropriation Summary                           
        203                                                                     
   Special Interest Items                                                  
        205                                                                     
   Classified Programs                                                     
        205                                                                     
   Technical Data                                                          
        205                                                                     
   Experimentation                                                         
        205                                                                     
   Information Assurance as Part of Independent Operational Testing        
        205                                                                     
   Special Termination Cost Clause                                         
        206                                                                     
   Joint Mission Planning System                                           
        206                                                                     
   Utilization of Small Business                                           
        206                                                                     
   Anti-Tank Weapons Master Plan                                           
        208                                                                     
   Tactical Radios                                                         
        208                                                                     
          Research, Development, Test and Evaluation, Army              
        208                                                                     
   Hunter Unmanned Aerial Vehicle (UAV)                                    
        212                                                                     
          Basic Research                                                
        213                                                                     
   Defense Research Sciences                                               
        213                                                                     
          Applied Research                                              
        213                                                                     
   Ballistics Technology                                                   
        213                                                                     
   Human Factor Engineering Technology                                     
        213                                                                     
   Environmental Quality Technology                                        
        213                                                                     
          Advanced Technology Development                               
        214                                                                     
   Medical Advanced Technology                                             
        214                                                                     
   Missile and Rocket Advanced Technology                                  
        214                                                                     
   Line-Of-Sight Technology Demonstration                                  
        214                                                                     
   Joint Tactical Radio                                                    
        214                                                                     
   Artillery Systems-Demonstration and Validation                          
        215                                                                     
   Operational Systems Development                                         
        215                                                                     
   Force XXI, Warfighting Rapid Acquisition Program                        
        215                                                                     
   Other Missile Improvement Programs                                      
        216                                                                     
   Aircraft Modifications/Product Improvement Program                      
        216                                                                     
          Research, Development, Test and Evaluation, Navy              
        221                                                                     
   Joint Experimentation                                                   
        226                                                                     
   Oceanographic and Atmospheric Technology                                
        228                                                                     
   Intercooled Recuperative Gas Turbine Engine                             
        228                                                                     
   JSOW                                                                    
        228                                                                     
   Aerial Targets                                                          
        229                                                                     
   Bone Marrow Registry                                                    
        229                                                                     
   Shared Reconnaissance Pod (SHARP)                                       
        229                                                                     
          Research, Development, Test and Evaluation, Air Force         
        236                                                                     
   Consolidation and Elimination of Small Programs                         
        236                                                                     
   AF/National Program Consolidation                                       
        236                                                                     
   Air Force Science and Technology                                        
        236                                                                     
   Wright Patterson Landing Gear Facility                                  
        236                                                                     
   Aerospace Propulsion Subsystems Integration                             
        241                                                                     
   Advanced Computing Technology                                           
        241                                                                     
   Crew Systems and Personnel Protection Technology                        
        241                                                                     
   Joint Strike Fighter                                                    
        242                                                                     
   B 2                                                                     
        242                                                                     
   Milstar                                                                 
        243                                                                     
   SBIRS High                                                              
        243                                                                     
   Development Planning                                                    
        244                                                                     
    16 Squadrons                                                           
        244                                                                     
    15 Squadrons                                                           
        245                                                                     
   Spacelift Range System                                                  
        245                                                                     
          Research, Development, Test and Evaluation, Defense-Wide      
        252                                                                     
          Basic Research                                                
        255                                                                     
   Chemical and Biological Defense Program                                 
        255                                                                     
          Applied Research                                              
        255                                                                     
   Historically Black Colleges and Universities                            
        255                                                                     
   Extensible Information Systems                                          
        255                                                                     
   Biological Warfare Defense                                              
        256                                                                     
          Advanced Technology Development                               
        256                                                                     
   Chemical and Biological Defense Program--Advanced Development           
        256                                                                     
   Verification Technology Demonstration                                   
        257                                                                     
   Advanced Concept Technology Demonstrations                              
        257                                                                     
   Ballistic Missile Defense                                               
        258                                                                     
   National Missile Defense Site Selection                                 
        259                                                                     
   Theater High Altitude Area Defense (THAAD)                              
        260                                                                     
   Medium Extended Air Defense System (MEADS)                              
        260                                                                     
   Russian American Observational Satellite (RAMOS)                        
        261                                                                     
   Space-Based Laser                                                       
        261                                                                     
   Sensor and Guidance Technology                                          
        261                                                                     
   Discoverer II                                                           
        262                                                                     
   Physical Security Equipment                                             
        262                                                                     
   Coalition Warfare                                                       
        262                                                                     
   Technical Studies, Support and Analysis                                 
        263                                                                     
   Strategic Environmental Research Program                                
        263                                                                     
   Defense Imagery and Mapping Agency Program                              
        263                                                                     
   Tri-Service Directed Energy Center                                      
        263                                                                     
   Special Operations Tactical Systems Development                         
        263                                                                     
   Information Technology Program                                          
        264                                                                     
          Developmental, Test and Evaluation, Defense                   
        269                                                                     
   Central Test and Evaluation Investment Program                          
        269                                                                     
          Operational Test and Evaluation, Defense                      
        271                                                                     
   Title V. Revolving and Management Funds                                 
        273                                                                     
          Defense Working Capital Funds                                 
        273                                                                     
   Defense Reutilization and Marketing Services                            
        273                                                                     
          National Defense Sealift Fund                                 
        273                                                                     
   Large Medium Speed Roll-On/Roll-Off (LMSR) Ships                        
        273                                                                     
   Maritime Prepositioning Force Enhancement Conversion                    
        274                                                                     
   National Defense Features                                               
        274                                                                     
   DOD Requirements for Commercial Tanker Ships                            
        275                                                                     
   Massachusetts Maritime Academy Training Ship                            
        275                                                                     
   Sealift Ship Leases                                                     
        275                                                                     
   Title VI. Other Department of Defense Programs                          
        277                                                                     
          Defense Health Program                                        
        277                                                                     
   Peer Reviewed Research                                                  
        278                                                                     
   Tricare Contracts and Pharmacy Costs                                    
        278                                                                     
   Custodial Care                                                          
        278                                                                     
   Fatigue Management                                                      
        279                                                                     
   Joint Diabetes Project                                                  
        279                                                                     
   Cervical Cancer Testing                                                 
        279                                                                     
   Gulf War Illness                                                        
        280                                                                     
   Computer Based Modeling in Health Care                                  
        280                                                                     
          Chemical Agents and Munitions Destruction, Army               
        280                                                                     
          Drug Interdiction and Counter-Drug Activities, Defense        
        283                                                                     
   Forward Operating Locations                                             
        283                                                                     
   Fingerprint Operations                                                  
        284                                                                     
   C 26 Aircraft Photo Reconnaissance Upgrade                              
        285                                                                     
   Drug Testing                                                            
        285                                                                     
   A 10 Logistical and Demilitarization Support                            
        285                                                                     
          Office of the Inspector General                               
        285                                                                     
   Title VII. Related Agencies                                             
        287                                                                     
          National Foreign Intelligence Program                         
        287                                                                     
   Introduction                                                            
        287                                                                     
   Classified Annex                                                        
        287                                                                     
                    Central Intelligence Agency Retirement and          
          Disability System Fund                                        
        287                                                                     
          Intelligence Community Management Account                     
        288                                                                     
                    Payment to Kaho'Olawe Island Conveyance,            
          Remediation, and Environmental Restoration Fund               
        288                                                                     
          National Security Education Trust Fund                        
        288                                                                     
   Title VIII. General Provisions                                          
        289                                                                     
          Definition of Program, Project and Activity                   
        289                                                                     
   Family of Medium Tactical Vehicles                                      
        289                                                                     
   B 52 Force Structure                                                    
        290                                                                     
   National Missile Defense                                                
        290                                                                     
   Aggressor Squadrons                                                     
        290                                                                     
   Advanced Concept Technology Demonstrations                              
        291                                                                     
   Medium Extended Air Defense System                                      
        291                                                                     
   Military Recruitment Financial Penalties                                
        291                                                                     
   House of Representatives Reporting Requirements                         
        291                                                                     
          Changes in the Application of Existing Law                    
        291                                                                     
   Appropriations Language                                                 
        292                                                                     
   General Provisions                                                      
        294                                                                     
          Appropriations Not Authorized by Law                          
        297                                                                     
          Transfer of Funds                                             
        299                                                                     
          Rescissions                                                   
        300                                                                     
          Compliance With Clause 3 of Rule XIII (Ramseyer Rule)         
        300                                                                     
          Constitutional Authority                                      
        301                                                                     
          Comparison with the Budget Resolution                         
        301                                                                     
          Five-Year Outlay Projections                                  
        302                                                                     
          Financial Assistance to State and Local Governments           
        302                                                                     
   Additional Views                                                        
        314                                                                     
106 th Congress                                                         
Report                                                                  
                                                                             
HOUSE OF REPRESENTATIVES                                                
1st Session                                                             
106 244                                                                 
       DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2000                         
  July 20, 1999.--Committed to the Committee of the Whole House on the   
 State of the Union and ordered to be printed                            
  Mr. Lewis of California, from the Committee on Appropriations,         
 submitted the following                                                 
 REPORT                                                                  
 together with                                                           
 ADDITIONAL VIEWS                                                        
 [To accompany H.R. 2561]                                                
      The Committee on Appropriations submits the following report in      
   explanation of the accompanying bill making appropriations for the      
   Department of Defense, and for other purposes, for the fiscal year      
   ending September 30, 2000.                                              
                                        BILL TOTALS                               
      Appropriations for most military functions of the Department of      
   Defense are provided for in the accompanying bill for the fiscal year   
   2000. This bill does not provide appropriations for military            
   construction, military family housing, civil defense, or nuclear        
   warheads, for which requirements are considered in connection with other
   appropriations bills.                                                   
      The President's fiscal year 2000 budget request for activities funded
   in the Department of Defense Appropriations Bill totals $263,265,959,000
   in new budget (obligational) authority. The amounts recommended by the  
   Committee in the accompanying bill total $266,061,503,000 in net new    
   budget authority. This is $2,795,544,000 above the budget estimate;     
   $15,540,955,000 above the sums made available for the Department of     
   Defense for fiscal year 1999 in the fiscal year 1999 Defense            
   Appropriations Act; and, in terms of the total authority available to   
   the Department of Defense in fiscal year 2000, $1,283,432,000 above the 
   sums made available for the Department of Defense for fiscal year 1999, 
   when fiscal year 1999 supplemental appropriations are included.\1\      
   \1\These figures include $16,095,949,000 in fiscal year 1999 emergency  
   defense funding included in Public Law 105 277, Omnibus Consolidated and
   Emergency Appropriations for Fiscal Year 1999, and Public Law 106 31,   
   Emergency Supplemental Appropriations for Fiscal Year 1999; and         
   $1,838,426,000 in Fiscal Year 2000 emergency defense funding also       
   included in Public Law 106 31.                                          
   Offset Folios 12 Insert here                                            
                              COMMITTEE BUDGET REVIEW PROCESS                     
      During its review of the fiscal year 2000 budget, the Subcommittee on
   Defense held a total of 17 hearings during the period of February 1999  
   to March 1999. Testimony received by the Subcommittee totaled 1,394     
   pages of transcript. Approximately half of the hearings were held in    
   open session. Executive (closed) sessions were held only when the       
   security classification of the material to be discussed presented no    
   alternative.                                                            
                                        INTRODUCTION                              
      The Committee's consideration of the fiscal year 2000 Defense        
   Appropriations bill comes as America's armed forces, and the plans and  
   budgets intended to support them and U.S. security demands in the       
   future, confront a series of difficult and interrelated challenges.     
      As evidenced by Operation Allied Force and other recent military and 
   humanitarian relief operations, the U.S. Armed Forces are still without 
   question the finest in the world. The overall quality and skill of      
   America's soldiers, sailors, airmen and marines remains unsurpassed. And
   U.S. training, equipment, and technology are, when considered in their  
   entirety, still superior to those of any potential adversary, as well as
   our allies. Even so, the immediate and long-term challenges confronting 
   the Department of Defense (DoD), the military services, and policymakers
   in the executive and legislative branches remain difficult and complex. 
      The international environment remains uncertain and potentially      
   explosive. Recent trends and developments involving Russia, China, India
   and Pakistan are assuredly not optimistic, while prospects for other    
   regional threats--including those which have dominated recent U.S.      
   military planning, North Korea, Iraq, and Iran--remain both unclear and 
   unsettling. Meanwhile, political instability persists in many regions,  
   as does the growing threat posed by the proliferation of technology.    
   Transnational issues such as ethnic conflicts, terrorism, the           
   international drug trade and increasingly, ``information age'' threats  
   continue to loom. And now, the United States, on the heels of a mission 
   in Bosnia which nears four years in duration, faces an even more        
   difficult and more protracted commitment to the Balkans in the wake of  
   the Kosovo conflict.                                                    
      Against this backdrop, the U.S. military--now having been drawn down 
   to the lowest force levels since the end of World War II--has been and  
   will doubtless continue to be engaged globally. Yet, even before the    
   recent hostilities involving Kosovo and Iraq, a combination of overseas 
   commitments, new missions, shrinking force structure, aging equipment,  
   and insufficient and, in some instances, misprioritized budgets joined  
   to bring the current and future readiness of the U.S. military into     
   question. These problems have created a punishing pace of operational   
   tempo and a decline in overall quality of life for servicemembers and   
   their families, which when combined with the effects of a strong        
   economy, have created a serious military manpower crisis. Within the    
   past year, for the first time in over two decades the U.S. Army, Navy   
   and Air Force have failed by significant margins to meet recruiting     
   goals, while these services' retention rates for experienced personnel  
   in critical specialty areas (such as Air Force pilots) have reached     
   dangerously low levels. In the meantime, serious readiness and weapons  
   modernization shortfalls persist. Recognizing these problems, both      
   Congress and now the Administration have proposed significant increases 
   in defense spending above previously planned levels.                    
                   Basis for Committee Recommendations                   
      The Committee strongly believes that, in many ways, this year is a   
   potential watershed for future defense planning, budgets, and programs. 
   It is significant that there now appears to be a general consensus      
   between the Administration and the Congress that the U.S. military's    
   operational, budgetary and programmatic needs call for a steady and     
   sustained increase in defense spending. Yet events of just the past     
   eight months--notably, the strengths and weaknesses displayed during the
   conduct of Operations Desert Fox and Allied Force; the deployment of    
   U.S. forces in support of the Kosovo Stabilization Force (KFOR); and the
   ongoing domestic debate over future government spending--combine to     
   reinforce serious questions regarding the prospects for and adequacy of 
   proposed defense budgets, be it the President's or Congressional        
   alternatives.                                                           
      Therefore, the Committee has endeavored to not only consider the     
   details of the Department's proposed fiscal year 2000 budget request,   
   but has also attempted to measure that budget and the new fiscal years  
   2000 2005 Future Years' Defense Plan (FYDP) against a number of factors.
   These include the international challenges cited above; the need to not 
   only plan for current DoD needs but those likely to be confronted in    
   2010, 2020 and beyond; and the already well-documented and articulated  
   manpower, readiness and modernization needs of the DoD generally and the
   services specifically.                                                  
      The Committee also gave careful consideration to three additional    
   areas in developing its recommendations:                                
      (a) The overall Federal budget debate and the strengths and          
   weaknesses of the Administration's defense budgets in that context;     
      (b) Neglect by certain DoD agencies of law, regulation and practices 
   concerning the use of appropriated funds, including the initiation of   
   new programs and diversion of funds provided for one purpose to another 
   without the required congressional notification or approval--events     
   which the Committee views as most troubling given the constitutional    
   imperative that appropriated funds be put to the uses specifically      
   delineated by the Congress; and                                         
      (c) The actual experience derived from the recent combat operations  
   involving Iraq and Yugoslavia; the degree to which the Future Years'    
   Defense Plan and the individual services' budgets address a series of   
   longstanding needs of the regional commanders-in-chief (CINCs) and our  
   forces in the field; and whether the nation's current national security 
   strategy (which calls for the U.S. military to carry out and win two,   
   near-simultaneous ``major theater wars'') can reasonably expect to be   
   supported given current defense planning and programming.               
          The President's Fiscal Year 2000 2005 Defense Program          
      The Committee finds, with some qualification, that the fiscal year   
   2000 budget and the overall fiscal years 2000 2005 defense program      
   announced by the President this February is a more realistic attempt to 
   match ``military means to goals'' than previous budget submissions. This
   new budget program calls for overall increases in previously planned    
   defense spending levels of approximately $112 billion over the period   
   2000 2005. Of this amount, a significant portion (nearly $35 billion) is
   targeted specifically at improving military pay and benefits, including 
   repeal of the military retirement program changes adopted in 1986. Other
   significant increases are programmed for readiness and operation and    
   maintenance funding generally, as well as critical weapons modernization
   programs.                                                               
      Despite these noteworthy proposals, the Committee remains deeply     
   troubled about whether this budget program can in fact meet both        
   immediate and longer-term national security challenges. Three specific  
   problems come to mind:                                                  
       The FY 2000 2005 Defense Budget Is Linked To Large Increases in     
   Overall Discretionary Spending: The President's new fiscal year 2000    
   2005 defense program proposes steady and sustained growth in defense    
   discretionary spending, from roughly $272 billion in FY 1999 (not       
   including enacted emergency supplemental appropriations) to about $330  
   billion annually in FY 2005. The Committee believes such growth is      
   justified, especially with numerous peacekeeping commitments and the    
   need to reinvigorate weapons modernization accounts. However, the       
   Committee also believes that it is a fair question to consider whether a
   defense program whose very viability hinges on such growth is in fact   
   realistic. The defense budget cannot be viewed in insolation from the   
   overall budget dynamic, involving spending levels for discretionary and 
   entitlement programs, potential changes in the the tax code, and        
   estimates of the government surplus.                                    
      Such questions about long-term budget levels are particularly        
   important to the DoD. Unlike most federal agencies, the DoD develops a  
   multi-year budget program with some degree of fidelity, essential for an
   agency with hundreds of major equipment procurement and developmental   
   efforts. Given the current uncertainty about the future budgetary       
   environment, the Committee views with some caution any long-term        
   revitalization plan for the DoD which has at its core an assumption of  
   very robust outyear defense spending levels. This is especially         
   important in light of plans being developed by each of the military     
   services to make long-term commitments to major production programs     
   which tend to ``squeeze'' other items in the budget to unacceptable     
   levels.                                                                 
       New, ``Unbudgeted'' Defense Budget Commitments Are Already Apparent:
   Since the budget was presented to the Congress in February, two new     
   developments have arisen which will require major revisions to the      
   existing DoD budget plan. The first involves Congressional action on    
   military pay and benefits, as expressed through both House- and         
   Senate-passed versions of the National Defense Authorization Act for    
   Fiscal Year 2000. The President's budget proposes a sizable increase    
   over previously programmed amounts for military compensation. Both the  
   House and Senate, most notably through increasing the size of the       
   proposed fiscal year 2000 military pay raise (from 4.4 to 4.8 percent), 
   but also through other initiatives, have now voted for authorization    
   changes which pose considerable unbudgeted outyear costs for the        
   DoD--perhaps more than $10 billion through fiscal year 2005.            
      Long-term, unbudgeted costs of continued contingency deployments are 
   also escalating, especially those resulting from NATO missions in the   
   Balkans. The Committee observes the current DoD budget plan was premised
   on a gradual drawdown of U.S. forces in Bosnia, with no funds budgeted  
   after fiscal year 2001 for any Balkan peacekeeping force or for         
   continued sanctions enforcement around Iraq. Until late last year, the  
   average cost of these two missions had appeared to stabilize at between 
   $1.5 2.0 billion per year. Realistically, one must assume there will be 
   costs of some greater magnitude from 2001 2005 stemming from continued  
   U.S. deployments associated with Bosnia and Iraq; and now, these        
   unbudgeted costs will be compounded by those resulting from Operation   
   Joint Guardian, the U.S. participation in KFOR. Using conservative      
   planning factors, the Committee believes these could result in up to $25
   billion in unbudgeted, unprogrammed costs over the FYDP.                
      The Committee believes it it essential that these issues be kept in  
   plain view as the Congress develops its defense spending recommendations
   for fiscal year 2000 and beyond. They clearly cast a long shadow over   
   DoD's overall Future Year's Defense Program, and the viability of       
   planned modernization budgets in particular since personnel and         
   readiness programs must continue to receive top budget priority.        
       ``Creative Accounting'' In The Fiscal Year 2000 Budget Request.-- Of
   immediate relevance to the Committee's consideration of the fiscal year 
   2000 defense appropriations request is what senior Department officials 
   have publicly conceded is a FY 2000 2005 program built largely on       
   optimistic economic assumptions and, for fiscal year 2000, ``one-time   
   initiatives'' which the Committee can most charitably describe as       
   ``creative accounting''. The most obvious and blatant of these are the  
   budget proposals to offset nearly $5 billion in new fiscal year 2000    
   programmatic increases with a like amount of budget authority           
   ``offsets''--a $3.1 billion reduction from a ``one-time'' proposal to   
   incrementally fund the fiscal year 2000 Military Construction program   
   (that is, providing only half the required budget authority needed to   
   actually complete proposed military construction projects); and an      
   unspecified cut of $1.65 billion (in the form of a proposed, non-program
   specific general reduction) embedded in the budget request for the      
   fiscal year 2000 Defense Appropriations bill.                           
      The Committee finds small solace in the refrain of many senior       
   Administration officials that its fiscal year 2000 defense budget ``has 
   a $12 billion increase'' over previous plans, much of which is for      
   critical personnel and readiness needs--when its budget really only pays
   for slightly more than half of those increases.                         
      In essence, the Department's FY 2000 budget tries to have it both    
   ways: it proposes needed increases in key programs, but ``offsets'' this
   growth with ``cuts'' having no substance.                               
      The Committee will not subscribe to such a ``quick fix'' mentality.  
   In both this bill, and the Military Construction bill reported by the   
   Committee, it has rejected these proposals out of hand. Rather, to meet 
   DoD's unfunded requirements, finance congressional initiatives and      
   backfill for the budget's creative accounting, the Committee proposes an
   increase over the total fiscal year 2000 defense spending level by the  
   President, combined with a wide range of program reductions, rescissions
   of previously appropriated funds and other initiatives. This approach is
   not only justified on the merits, but is a direct consequence of the    
   Administration's having sent up a fiscal year 2000 budget submission    
   which itself was ``oversubscribed'' by $4.75 billion.                   
 NEGLECT OF TRADITIONAL APPROPRIATIONS AND ACQUISITION PROGRAM PRACTICES 
      Adding to the difficulties confronting the Committee in its          
   consideration of the fiscal year 2000 budget request are serious        
   budgeting and funding execution issues regarding appropriations for     
   defense acquisition programs. These are occuring with increasing        
   frequency in both the budget requests submitted by the Department of    
   Defense as well as in the execution of program funding once             
   appropriations have been provided by the Congress. Throughout this      
   report there will be more specific descriptions of these and related    
   issues. Of particular concern is the failure of certain DoD entities to 
   comply with many existing procedures governing the expenditure of       
   appropriated funds.                                                     
      One of the highest duties of the Congress is to exercise the mandate 
   in Clause 7, Section 9, Article I of the Constitution of the United     
   States that ``No money shall be drawn from the Treasury but in          
   Consequence of Appropriations made by law.'' In terms of appropriations 
   provided to the Department of Defense, this mandate has evolved over    
   time as a result of statute, appropriations law, court rulings, and     
   executive branch regulations; decades of appropriations implementation  
   and resulting ``practices and rules''; and what the Committee regards as
   an ongoing discussion with the DoD and its component departments and    
   agencies over budget rules and appropriate procedures regarding the use 
   of appropriated funds.                                                  
      The Committee's perspective is one of ensuring that funds made       
   available in appropriations acts are in fact put to the use intended by 
   the elected members of Congress, under the terms and conditions the     
   Congress and the House and Senate Appropriations Committees place on the
   funding in question. This is a responsibility the Constitution clearly  
   intended for the Congress--the so-called power of the purse--and        
   therefore, the Committee does not take issues regarding the use of      
   appropriated funds lightly. However, given the sheer size, complexity,  
   and dynamism of both the real world and the funding environments that   
   the Department of Defense and the U.S. military operates, the Committee 
   is sensitive to and has in fact actively engaged the Department on      
   countless occasions to ensure that the DoD has the funding flexibility  
   it needs to respond rapidly to emerging circumstances. The Committee    
   notes that unless specific restrictions have been enacted into law, in  
   most instances the most restrictive rules require the DoD, in accordance
   with certain pre-established thresholds, to provide the Committee with  
   prior notification or, through the reprogramming process, to seek the   
   Committee's prior approval for contemplated funding shifts. All the     
   Committee demands is that these well-established procedures--many       
   enshrined in statute or appropriations law, not just custom or          
   practice--be followed.                                                  
      Regrettably, in recent years the Committee has observed a steady     
   erosion of departmental compliance with these standards, prompting the  
   Committee to actively address these problems in recent appropriations   
   acts and accompanying Committee reports. The Committee further observes 
   these abuses have generally been most numerous and blatant with respect 
   to defense acquisition programs--and of late, those managed by the      
   acquisition communities within the Department of the Air Force, the     
   Department of the Army, and the Office of the Secretary of Defense.     
      For example, with respect to the Air Force, despite recent Committee 
   direction and, in several instances, new appropriations law, the        
   Committee finds that both in execution of funds provided in             
   appropriations acts and in its fiscal year 2000 budget submission the   
   Air Force acquisition community continues to ignore and violate a wide  
   range of appropriations practices and acquisition rules. Details on     
   these specific instances can be found elsewhere in this report, but a   
   short summary of such Air Force abuses includes:                        
      (a) In its fiscal year 2000 budget the Air Force continues to        
   blithely ignore specific Committee direction and law intended to ensure 
   that funds appropriated for one purpose--for example, weapons           
   procurement--are in fact used for that purpose and not for other        
   efforts, such as research and development, by:                          
       (1) Requesting hundreds of millions of dollars in various           
   procurement programs, when in fact the intended use is to support       
   operation and maintenance funding needs (in violation of DoD policy);   
       (2) Requesting substantial procurement funds for a program (the F 22
   fighter) when in fact the use of the funds is for development (in       
   violation of specific Congressional direction), and                     
       (3) Requesting substantial development funds for a program (the     
   MILSTAR satellite), when the intent is to use the funds for procurement 
   (in violation of a provision of law);                                   
      (b) Violation of both new start program regulations and law, as well 
   as standard reprogramming procedures, by using fiscal year 1999 funds to
   begin a new start, several hundred-million dollar production program    
   which the Congress never formally approved (the C 5 avionics            
   modernization program)--and did so by diverting funds specifically      
   provided by the Congress for another program; and                       
      (c) Initiation of a new Special Access Program without prior         
   Congressional notification as required by law.                          
      Regarding the Army, it has in several instances ignored specific     
   Committee or House-Senate conference report direction on major programs,
   to include:                                                             
      (a) Entering into a new multi-year production contract for the Family
   of Medium Tactical Vehicles, despite specific Committee direction to    
   defer such action until it first identified and then formally submitted 
   to the Congress, an approved plan to fix significant technical and      
   safety problems plaguing thousands of vehicles already delivered and in 
   service;                                                                
      (b) Negotiating a multi-year production contract for the TOW Improved
   Target Acquisition System (ITAS) despite both fiscal year 1999 Committee
   and appropriations conference committee direction explicitly denying    
   approval of the ITAS multi-year contract; and                           
      (c) In conjunction with OSD, explicitly ignoring fiscal year 1999    
   conference committee direction and using Advanced Concept Technology    
   Demonstration funds for the Line-of-Sight Tank (LOSAT) program.         
      Regarding OSD acquisition officials, in addition to the example      
   involving LOSAT cited above, the Committee is little short of amazed    
   when it comes to their actions on the Medium Altitude Air Defense       
   (MEADS) program. This program was specifically terminated in the        
   conference report accompanying the fiscal year 1999 Defense             
   Appropriations Act. Internal DoD financial management documents issued  
   this spring noted this action and correctly stated that: ``This item has
   been denied by the Congress and is not subject to reprogramming''       
   (emphasis added). Nonetheless, the Committee has since learned that     
   officials in the OSD acquisition structure as well as in the Ballistic  
   Missile Defense Organization, an OSD acquisition organization, directed 
   the use of over $2 million of funds specifically provided for another   
   program to continue MEADS-related activities, and actually announced the
   winner of the MEADS contract competition. All for a program explicitly  
   terminated in the fiscal year 1999 appropriations process.              
      The Committee believes these and similar instances raise fundamental 
   questions regarding DoD program oversight and compliance with existing  
   law and regulations. The Committee is also compelled to note such       
   actions contribute to the Committee's uncertainty regarding the adequacy
   of the Department's proposed defense budget and program planning. The   
   extent of such problems gives the Committee little confidence that the  
   military service or defense agency in question is requesting            
   appropriations for its major acquisition programs based on solid cost   
   estimates, testing and production milestones, and firm estimates and    
   commitments to funding requirements. In this sense, such actions are    
   extremely corrosive to sensible program management, defense planning and
   budgeting. And it severely weakens the working relationship between the 
   executive branch--charged with proposing, then managing, programs if    
   funded--and the legislative branch, which in providing funding must have
   confidence that the budget and program proposals underlying the funding 
   requests in question are accurate and executable.                       
      The Committee could speculate as to the reason behind this growing   
   trend--for example, the pressure to deal with weapons modernization     
   demands following more than a decade of inflation-adjusted cuts in      
   funding--but to do so is to justify these practices. While sympathetic  
   to budget pressures, and aware of the desire of the acquisition         
   community to exercise as much control and flexibility over its programs 
   as possible, in keeping with its constitutional duties the Committee    
   simply cannot excuse violations of appropriations and acquisition law,  
   regulation and practice.                                                
           ``Lessons Learned'' From Recent Military Operations           
      The combat operations over Iraq and Yugoslavia (Operations Desert Fox
   and Allied Force, respectively) and their immediate aftermath have      
   already been instructive in terms of ``lessons learned''--not only for  
   DoD, the Joint Staff, the services, and the regional commands, but also 
   for others in the executive branch and Congress. These missions have    
   confirmed the wisdom of prudent investments over the years in so-called 
   ``force multipliers''. These include such programs as advanced          
   reconnaissance and intelligence collection; improved command, control   
   and communications; selective ``platform'' upgrades, such as night      
   attack capability for tactical strike assets, or conventional,          
   all-weather precision weapons delivery capability for the heavy bomber  
   force; and a new generation of precision-guided munitions.              
      Yet these technological improvements are only one aspect of the many 
   factors essential to battlefield success. While much attention is being 
   directed at the new capabilities brought to bear in these operations,   
   the Committee insists that without the less-glamorous ``basics''--such  
   as effective logistics systems; solid training; and most importantly,   
   keeping a highly motivated and quality force--our technological advances
   mean little.                                                            
      Accordingly, the Committee not only acknowledges the exemplary       
   performance of the U.S. forces deployed in direct support of these      
   operations, but all those who helped prepare, train, and equip those    
   forces. This provides a vivid reminder to Congress and the senior       
   leadership in the executive branch of the shared responsibility to work 
   in concert with the senior military leadership of the Department and the
   forces in the field to fashion a defense program which balances these   
   competing prerogatives.                                                 
      In keeping with this obligation, then, while laudatory of the        
   performance of U.S. forces in these recent engagements, the Committee   
   must register its deep concern over a number of issues which these      
   recent operations have highlighted.                                     
       Current Force Structure and Current Commitments Are Not In Balance. 
   --It is now all too apparent that the military services are not yet     
   properly reconfigured from their old ``Cold War'' orientation, or are   
   simply undermanned or underequipped in certain key categories, to meet  
   the Nation's emerging global commitments at an acceptable level of risk.
   In the immediate aftermath of the Yugoslav campaign, the Chiefs of Staff
   of Army and Air Force, in different yet equally compelling ways, have   
   brought this issue into sharp focus. The new Army Chief of Staff has    
   pronounced publicly that, without new and innovative thinking in his    
   service--including a fundamental restructuring of the Army's heavy and  
   light units--his service risks losing strategic and tactical relevance. 
   The Air Force Chief of Staff declares that the immediate well-being of  
   his service--stretched by years of unanticipated operations,            
   unprecedented rates of ``peacetime'' operational tempo, declining       
   readiness indicators, personnel turbulence and shortages, and now, two  
   major air campaigns within the past eight months--makes a lengthy       
   ``stand-down'', including a significant reprieve from overseas          
   deployments, essential if he is to properly reconstitute his force.     
      This Committee recognizes these are complex issues, with each Service
   facing its own unique challenges. But it is clear the strategy, roles   
   and missions, and force structure assumptions underpinning the          
   Quadrennial Defense Review (QDR) two years ago--which now form the basis
   of current DoD planning--must be revisited. This is a considerable      
   undertaking, made more difficult by the uncertain world situation, the  
   budget environment and many difficult resource allocation issues in each
   service. Nevertheless, the Committee expresses its conviction that, in  
   light of the additional commitments incurred by U.S. forces since the   
   QDR was conducted, as well as the serious personnel and readiness       
   problems that have emerged over the past few years, the Secretary of    
   Defense, the Chairman of the Joint Chiefs, the senior leadership of each
   of the military services, and ultimately, the President and the Congress
   must deal with these issues head on, as soon as possible.               
       Fundamental Problems Persist In Matching Resource Allocations To    
   Operational Requirements.-- For years, the Committee has expressed deep 
   concern that the DoD's annual budget submissions have consistently      
   failed to adequately address certain critical warfighting needs. This   
   disconnect was illustrated during the early stages of Operation Allied  
   Force, when the Air Force had to submit an urgent reprogramming request,
   and then an emergency supplemental budget request for the Conventional  
   Air-Launched Cruise Missile (the Air Force's only long-range, all       
   weather conventionally armed stand-off weapon), because inventories had 
   been drawn down to unacceptable levels. The Committee notes this problem
   would have been far worse had not the Congress in the mid-1990's        
   provided funding for 250 CALCMs, which had not been budgeted by the Air 
   Force or the DoD. Had this not occurred, CALCM would not have even been 
   available for Operations Desert Fox or Allied Force.                    
      The Committee also notes that many of the innovations which were used
   to great effect in Operation Allied Force--such as the use of B 2 and B 
   1 bombers in a conventional bombing role--are available now only because
   of congressional actions to both initiate and accelerate many of the    
   upgrades required for these missions. For example, the initial          
   deployment of a precision-guided conventional weapon on the B 2--which  
   served as a clear precursor to its subsequently being equipped with the 
   highly effective JDAM munition--was the so-called ``GATS GAM'' interim  
   weapon, a congressional initiative.                                     
      These examples, unfortunately, are symptomatic of many recent budget 
   decisions. The Committee has stated its view repeatedly that many       
   programs with strong warfighting applications ofttimes are given short  
   shrift in annual service budget submissions. The reasons for this vary, 
   but are usually found in either budget pressures, service parochialism, 
   and the aversion of many of the services' acquisition hierarchies to    
   upgrade existing systems (as opposed to developing a new system from    
   scratch). The Committee has also observed that these problems are       
   especially acute when the capability or system in question has a        
   ``joint'' or ``national'' character, and is needed by multiple services 
   or joint warfighting commands. Regrettably, even when such capabilities 
   are of great utility to forces in the field, they often involve missions
   or capabilities--such as logistics, transportation, intelligence        
   collection and reconnaissance, and electronic combat--which the military
   services often fail to consider on a par with what each considers its   
   core requirements.                                                      
               SHORTAGES OF LOW-DENSITY, HIGH-DEMAND ASSETS              
      The Committee is especially troubled as many of these deficiencies,  
   including shortages in so-called ``low-density, high-demand'' assets,   
   have been well known for some time. These include, but are not limited  
   to: electronic warfare aircraft and specialized jamming equipment;      
   tactical intelligence collection and dissemination assets (ranging from 
   collection assets such as the U 2, RIVET JOINT, AWACS and JSTARS        
   aircraft and tactical UAVs; interoperable, secure communications and    
   command and control, to include new data links and data fusion          
   capability); and tactical airlift, aerial refueling capability and other
   transportation and logistics support platforms and equipment. The       
   Committee has consistently supported additions over DoD budget requests 
   for such programs over the years. Nevertheless, continued shortages in  
   these and many other categories clearly posed operational constraints   
   during Operations Desert Fox and Allied Force. This not only impeded the
   regional commands charged with prosecuting the air campaigns, but also  
   other regional commanders who were confronted with the physical         
   diversion of assets from their areas of responsibility and other        
   unexpected resource shortfalls.                                         
      The Committee's concern about these problems is not new, and it has  
   demonstrated it will not shy from taking actions to ensure that our     
   forces in the field are not at risk or caught short. In this regard, the
   recently-enacted emergency supplemental appropriations act which        
   provided funding for the conduct of Operation Allied Force (Public Law  
   106 31) created a new appropriations account, the ``Operational Rapid   
   Response Transfer Fund'', that was expressly intended to provide a      
   funding source to meet immediate shortfalls and needs identified by the 
   regional CINCs. The Committee understands the Department will soon make 
   use of the $300,000,000 provided by the Congress in this fund to address
   some of these most urgent problems, such as those plaguing the limited  
   inventory of Navy EA 6B jamming aircraft. The Committee commends the    
   senior leadership of the Department for expeditiously following through 
   on the Congress' intent in this regard.                                 
      However, it is clear much more must be done. As with the questions   
   raised earlier in this report about the proper size and organization of 
   each of the military services, a continued failure by the DoD           
   generally--and the military services and defense agencies               
   specifically--to consistently link operational needs to decisions about 
   resource allocations and defense program development carries with it    
   serious implications for the ability of the U.S. military to carry out  
   the current national security strategy. This is not just a theoretical  
   discussion, nor one which the Committee believes can be deferred. The   
   Committee bill, across all services and defense agencies, is intended to
   bring these questions to the forefront--and in the instance of one of   
   the military services--the United States Air Force--the Committee       
   believes these problems are now so acute that it must take a series of  
   immediate and forceful steps.                                           
                United States Air Force--At A Crossroads?                
      The air campaigns against Iraq and Yugoslavia, which on the whole    
   featured an exemplary level of professionalism, technical sophistication
   and skill, were conducted and supported in large measure by the men and 
   women of the United States Air Force. To them, and their colleagues in  
   the other branches of the military and defense agencies who also played 
   important roles in these operations, the Committee expresses its        
   gratitude and respect for their service and bravery.                    
      In the Committee's view, this performance on the part of the Air     
   Force is all the more remarkable in light of the serious problems which,
   over the past few years, have increasingly beset this service as it     
   struggles with the twin dilemmas of redefining its role in the post Cold
   War era while being called to carry out an increasing number of missions
   with fewer people. Among the most serious of these problems:            
      --For the first time since 1979, the Air Force will miss its         
   recruiting goals for new enlistees--by nearly 2,600 individuals. This is
   especially noteworthy given the Air Force's success since the transition
   to an all-volunteer force in attracting many more potential recruits    
   than it actually requires.                                              
      --The Air Force also is coping with serious retention problems,      
   particularly in the midyear grades, with acute shortages in a large     
   number of specialty career fields ranging from air traffic controllers  
   to security police. Of considerable concern is that the Air Force is    
   already suffering from a steep shortage of pilots, with an existing     
   deficit of over 1,100 that is projected to approach 2,000 within the    
   next three years.                                                       
      --Overall Air Force readiness--as measured by the mission capable    
   rates of aircraft and other key systems--has steadily declined in each  
   of the past eight years, with an overall rating of less than 75 percent 
   (an eleven percent decline since 1991) prior to the onset of Operation  
   Allied Force.                                                           
      --In the past three years a major aviation spare parts shortfall has 
   arisen in the Air Force (as well as the Navy), due largely to faulty    
   estimates which failed to accurately reflect the effects of increased   
   operational tempo on aging equipment. Despite the appropriation of      
   roughly $2 billion over budgeted amounts for spare parts over the past  
   three years, continued operational demands and the time required to     
   procure the necessary parts and perform required maintenance make it    
   likely that Air Force operational readiness rates and equipment         
   availability will remain low for the foreseeable future.                
      --Despite the proposed increases in the President's budget           
   submission, major funding shortfalls persist across nearly all Air Force
   mission and functional areas. In February 1999 the Air Force Chief of   
   Staff submitted to Congress an ``unfunded priority list'' for fiscal    
   year 2000 alone of over $2.3 billion. The following month, in response  
   to a request from the House Armed Services Committee, senior Air Force  
   officials provided a detailed unfunded shortfall list covering the      
   period of the current Future Years Defense Plan (fiscal years 2000      
   2005). After adjusting this list (removing from it fiscal years 1999 and
   2000 needs tied to the contingency operations involving Iraq and Kosovo,
   most of which were dealt with in the emergency supplemental             
   appropriations act enacted in late May), the Air Force still documents  
   unfunded needs totaling over $14 billion (emphasis added).              
      All of these problems were present prior to the air campaigns against
   Iraq and Yugoslavia, which senior Air Force officials freely admit      
   stretched existing Air Force personnel and assets to the limit. For     
   example, during Operation Allied Force, the Air Force was compelled to  
   implement the so-called ``stop-loss'' program, whereby individuals whose
   terms of service were due to expire were formally notified that they    
   could be kept on active duty for an indefinite period owing to          
   operational needs. At the time stop-loss was invoked, the Air Force     
   indicated nearly 34,000 servicemembers in critical specialty areas could
   have their tours of duty involuntarily extended as a result of Operation
   Allied Force and the Air Force's other global missions.                 
      Air Force operational assets were also clearly taxed by Operations   
   Desert Fox and Allied Force. The most acute problems occurred in certain
   categories--such as reconnaissance, airlift, and aerial refueling--where
   the Air Force carries a disproportionate share of, if not the only,     
   capability within the U.S. armed forces to support major military       
   operations. The Air Force itself describes its unique capabilities as   
   ``Global Reach, Global Power''. One may then ask, can the Air Force     
   today or in the future deliver on this motto's promise? These weaknesses
   give the Committee doubts about the U.S. military's ability to carry out
   the ``near-simultaneous, two major theater war'' capability that the    
   national military strategy is premised upon. Of even greater concern is 
   the fact that the six-year Air Force budget program demonstrably falls  
   short of meeting both existing and projected requirements in these      
   critical areas.                                                         
      Now, following Operation Allied Force, the Air Force Chief of Staff  
   has made clear his view that the Air Force must conduct a ``stand-down''
   of at least several months duration, to reconstitute its forces and give
   its officers and airmen a chance to recover from the operational tempo  
   which is the root cause of many of the Air Force's personnel and        
   readiness problems. The Committee has been advised that this standdown, 
   as envisioned by the Air Force, would be of sufficient scope and length 
   that many current operational requirements being carried out by the Air 
   Force would either have to be transferred to the other services or left 
   unaddressed.                                                            
      The Committee believes such candor on the part of senior Air Force   
   leadership--clearly at variance from the typical ``can do'' attitude    
   which the military services often take to an extreme--deserves both     
   respect and careful consideration. It says much about the current state 
   in which the Air Force finds itself.                                    
      The Committee recognizes many of these problems are not of the Air   
   Force's making, nor could they have been forecast. Many stem from a     
   series of decisions and events which began in 1989 91, starting with the
   fall of the Berlin Wall, the resulting dissolution of the Warsaw Pact   
   and the Soviet Union, the Persian Gulf War, and the acceleration of a   
   major defense build-down in response to these events and federal budget 
   pressures. The Committee is well aware of the difficulties these changes
   posed for all the military services, and the Air Force in particular.   
      Moreover, the operational employment of U.S. forces has changed      
   markedly in recent years. The Air Force and its sister services not only
   continue to carry existing regional commitments and their potential     
   warfighting demands, but now find themselves regularly deployed on a    
   large scale on what had just a few years ago been called                
   ``non-traditional missions'', such as peacekeeping, peace enforcement,  
   and humanitarian relief operations. Each of the services--not just the  
   Air Force--have and will continue to struggle with these new missions.  
      With 20/20 hindsight, the Committee believes that the Air Force's    
   recognition of the scale of its modernization dilemma may have          
   inadvertently contributed to many of the personnel and readiness        
   problems it now confronts. The Committee remembers vividly how just two 
   years ago the then-Chief of Staff of the Air Force explained to the     
   Committee how his service had consciously decided to give up force      
   structure and manning levels in order to free up additional resources   
   for modernization. Now, that gamble, and others taken by this Service,  
   have come home to roost, leading to what the Committee believes is an   
   Air Force personnel and readiness crisis, even while the Air Force still
   confronts a modernization crisis of considerable size and scope.        
                      Air Force Modernization Issues                     
      It is indisputable that the Air Force has many unmet needs in        
   modernization, many of which were on clear display during Operation     
   Allied Force.                                                           
      There is a requirement for at least five additional Joint STARS      
   surveillance aircraft beyond those currently funded or budgeted--yet    
   after this year, the Air Force budget provides none.                    
      At least 20 percent of the KC 135 aerial refueling fleet--which uses 
   1950's and 1960's vintage airframes--has yet to be modernized with      
   improved engines and other equipment which will not only extend its     
   service life but greatly increase its operational flexibility and       
   availability. The Air Force budget fails to request even one tanker     
   conversion in its budget until fiscal year 2002.                        
      The Commander-in-Chief, U.S. Transportation Command, declares a need 
   for at least 150 C 130J tactical airlift aircraft--yet the Air Force    
   budget fails to buy any until fiscal year 2002 and active duty units are
   not scheduled to receive any new C 130's until 2006.                    
      Due to fiscal constraints the Air Force has restructured the         
   next-generation of early warning satellites used for detection of       
   ballistic missile launches, the Space-Based Infrared System-High and    
   -Low. In so doing, at least in the case of SBIRS-High, the Air Force has
   taken a fully funded, well-crafted acquisition program and within less  
   than nine months, restructured it into a higher risk program, with a two
   year slip in fielding, excessive concurrency between development and    
   production--and in the process generated an unfunded shortfall of nearly
   $100 million in its fiscal year 2000 budget.                            
      These are just a few examples where the Committee believes the Air   
   Force acquisition program and budget priorities are inconsistent with   
   actual need. Programs relied upon by forces in the field, and in some   
   instances the National Command Authority, are not funded adequately or  
   deferred. Other efforts, which may have some intrinsic merit but are    
   really nothing more than expensive demonstration projects, receive      
   increased budget allocations. Meanwhile, as described earlier in this   
   report, the Air Force acquisition community seems at times to be        
   completely oblivious to the legal and DoD policies in place governing   
   the proper use of appropriated funds.                                   
                                   f 22                                  
      The centerpiece of the Air Force's modernization program for at least
   the past decade, along with the C 17 transport aircraft, has been its   
   next generation air superiority fighter, the F 22. The F 22 was         
   originally conceived in the early 1980's to counter a projected threat  
   driven by the expectation that the then-Soviet Union would couple the   
   sheer size of its force structure with significant technological        
   advances in fighter and air-to-air technology. Following the demise of  
   the Soviet Union and the huge downsizing of the now Russian military,   
   the Air Force has continued development of the F 22 based largely on    
   what it states is its desire to guarantee air superiority over any      
   potential adversary for the foreseeable future. The original F 22       
   inventory objective of 750 aircraft has since been revised downwards, to
   a figure of 339 today, enough to equip three wings plus expected        
   attrition reserve requirements.                                         
      As currently configured, there is little doubt that the F 22, if it  
   meets its performance specifications, would far outclass any single     
   fighter known to be under development. Even with the change in the      
   threat environment, little of the F 22's high performance               
   characteristics have changed in the past decade. The Air Force would    
   concede that both development and production of the F 22 is indeed a    
   challenging task, for that is the purpose of the program--to develop a  
   fighter so capable that it will guarantee U.S. forces air superiority   
   for decades once it is fielded.                                         
      However, the ambitious technical goals of the F 22, which include a  
   series of new production processes as well as the most advanced avionics
   and electronics ever fielded on a U.S. aircraft, have led to a series of
   delays in the F 22 development program. Juxtaposed with the Air Force's 
   desired fielding schedule, this has led to a program whose recent       
   history has been marked by continual cost growth and whose current      
   acquisition profile would, even if examined in isolation, raise serious 
   questions about the overall affordability and feasibility of this       
   program.                                                                
      Given these factors, and the magnitude of other Air Force problems in
   personnel, readiness and modernization, the Committee decided to make   
   the F 22 a focus of its deliberations. The following sections cites the 
   key points which it took into consideration when making its             
   recommendations.                                                        
                                22 concerns                              
       F 22 has been experiencing technical problems.-- The F 22 has       
   experienced several technical problems including: manufacturing problems
   with titanium castings; delamination of longerons; structural weaknesses
   in aft fuselage; anomalies in brakes, inertial reference system and     
   environmental control system; nagging fuel leaks; problems with engine  
   low pressure turbine blades, high pressure turbine blades, and engine   
   combustors; and problems with excessive engine vibration. The Air Force 
   reports that there are 97 issues limiting aircraft operations and 68    
   issues limiting ground maintenance. There are already indications that  
   further flight testing in fiscal year 1999 will be curtailed while the  
   Air Force labors to correct these technical problems. While the         
   Committee recognizes that the sophisticated technology intended for use 
   in the F 22 makes such technical problems likely, it also must consider 
   that the successful resolution of these problems will further both delay
   schedules and drive up costs.                                           
       Affordability of the F 22 is questionable.-- Based on Air Force     
   acquisition reports, the F 22--even without further cost growth--is     
   projected to cost three times as much as the aircraft it replaces (the F
   15). The unit cost of the six F 22's pro