Military

27-434
109TH CONGRESS 2ND SESSION
SENATE
REPORT

109-254

Calendar No. 426

NATIONAL DEFENSE AUTHORIZATION

ACT FOR FISCAL YEAR 2007

R E P O R T

[to accompany s. 2766]

on

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2007 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES

together with

ADDITIONAL VIEWS

COMMITTEE ON ARMED SERVICES

UNITED STATES SENATE

congress.#13

MAY 9, 2006- Ordered to be printed

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

?

27-434

2006
109TH CONGRESS 2ND SESSION
SENATE
REPORT

109-254

Calendar No. 426

NATIONAL DEFENSE AUTHORIZATION

ACT FOR FISCAL YEAR 2007

R E P O R T

[to accompany s. 2766]

on

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2007 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES

together with

ADDITIONAL VIEWS

COMMITTEE ON ARMED SERVICES

UNITED STATES SENATE

[Graphic image not available]

MAY 9, 2006- Ordered to be printed

?
COMMITTEE ON ARMED SERVICES
(109th Congress, 2nd Session)
JOHN WARNER, Virginia, Chairman
JOHN MCCAIN, Arizona
JAMES M. INHOFE, Oklahoma
PAT ROBERTS, Kansas
JEFF SESSIONS, Alabama
SUSAN M. COLLINS, Maine
JOHN ENSIGN, Nevada
JAMES M. TALENT, Missouri
SAXBY CHAMBLISS, Georgia
LINDSEY O. GRAHAM, South Carolina
ELIZABETH DOLE, North Carolina
JOHN CORNYN, Texas
JOHN THUNE, South Dakota
CARL LEVIN, Michigan
EDWARD M. KENNEDY, Massachusetts
ROBERT C. BYRD, West Virginia
JOSEPH I. LIEBERMAN, Connecticut
JACK REED, Rhode Island
DANIEL K. AKAKA, Hawaii
BILL NELSON, Florida
E. BENJAMIN NELSON, Nebraska
MARK DAYTON, Minnesota
EVAN BAYH, Indiana
HILLARY RODHAM CLINTON, New York
CHARLES S. ABELL, STAFF DIRECTOR
RICHARD D. DEBOBES, DEMOCRATIC STAFF DIRECTOR (ii)

C O N T E N T S Page
Purpose of the Bill 1
Committee overview and recommendations 2
Explanation of funding summary
9
Division A--Department of Defense Authorizations 17
Title I--Procurement 17
Subtitle A--Authorization of Appropriations
17
Explanation of tables
17
Subtitle B--Army Programs
19
Limitation on availability of funds for the Joint Network Node (sec. 111)
37
Comptroller General report on the contract for the Future Combat Systems program (sec. 112)
38
Reports on Army Modularity Initiative (sec. 113)
38
Budget Items--Army
40
Future Cargo Aircraft
40
Surface-launched advanced medium range air-to-air missile
40
M1A1 Abrams tank and M2A2 Bradley fighting vehicle upgrades
41
M113 Armored personnel carrier family of vehicles
41
M1028 120mm tank cartridge
42
M915 105mm Dual Purpose Improved Conventional Munition artillery cartridge
42
Rapid wall breaching kit
42
Ammunition peculiar equipment outloading module
42
Automated Tactical Ammunition Classification System
42
Corrosion protective covers
43
Insensitive munitions high-shear mixing system
43
Lake City Army Ammunition Plant
43
Modernization of forge equipment at Scranton Army Ammunition Plant
43
Radford Army Ammunition Plant upgrades
43
Defense advanced global positioning system receivers
44
Nonsystem training devices
44
Subtitle C--Navy Programs
44
CVN-21 class aircraft carrier procurement (sec. 121)
67
Construction of the first two vessels under the next-generation destroyer program (sec. 122)
68
Modification of limitation on total cost of procurement of CVN-77 aircraft carrier (sec. 123)
69
Budget Items--Navy
70
MH-60S and MH-60R helicopters
70
T-45TS Goshawk
70
CH-53 Integrated Mechanical Diagnostic System (IMDS)
71
Allegany Ballistics Laboratory facility restoration
71
Mk 110 57mm naval gun
71
Mk 295/Mk 296 ammunition for Mk 110 57mm naval gun
71
M67 hand grenade
71
M290 nuclear refueling facility
71
Procurement authority for LPD-17 class ship designated LPD-25
72

Advance procurement authority for LHA replacement (LHA(R)) ship designated LHA-7
73
Outfitting and post-delivery
73
Completion of prior year shipbuilding
74
Amphibious ship integrated bridge system
74
DDG-51 Arleigh Burke-class destroyer modernization program
74
High performance metal fiber brushes for shipboard motors and generators
75
Ship support items under $5.0 million
75
Electronics equipment items under $5.0 million
75
Sonobuoys
76
Joint service and explosive ordnance disposal improvised explosive device countermeasures
76
NULKA anti-ship missile decoy
76
Command support equipment
76
Combat Casualty Care Equipment Upgrade Program
77
Lightweight 155-millimeter towed howitzer
77
Modification kits
78
Laser integrated target engagement system
78
Subtitle D--Air Force Programs
78
Procurement of Joint Primary Aircraft Training System aircraft after fiscal year 2006 (sec. 141)
93
Prohibition on retirement of C-130E/H tactical airlift aircraft (sec. 142)
93
Limitation on retirement of KC-135E aircraft (sec. 143)
93
Limitation on retirement of B-52H bomber aircraft (sec. 144)
94
Retirement of B-52H bomber aircraft (sec. 145)
94
Prohibition on incremental funding and multiyear procurement of F-22A aircraft (sec. 146)
94
Budget Items--Air Force
95
Joint Strike Fighter
95
F-22A procurement
96
C-17A procurement
97
KC-135 tanker replacement
98
A/OA-10 modifications
98
C-5 aircraft avionics modernization program
99
Bomb insensitive munitions upgrade
99
Propulsion replacement program
99
Expanded intelligence support for reach-back operations
99
Self-deploying infrared streamer
100
Budget Items--Defense-wide
107
Army high performance computing research center
107
Mini gun
107
Time delayed firing device/sympathetic detonators
107
Persistent Predator operations and intelligence
108
Advanced lightweight grenade launcher
108
Special Operations Forces laser acquisition marker
108
Special Operations Command craft modifications
108
Joint threat warning system
109
Automatic Chemical Agent Detector and Alarm
109
Improved chemical agent monitor
109
Items of Special Interest
110
Cost control for certain helicopter acquisition programs
110
Deployable/mobile command and control programs
110
F-18 Hornet to Joint Strike Fighter transition
111
Fully funded bomber roadmap
112
Littoral Combat Ship
112
Maritime Prepositioning Force, Future
113
Ship systems commonality
115
Submarine force structure
115
T-38 replacement aircraft
116
Title II--Research, Development, Test, and Evaluation 119
Explanation of tables
119
Subtitle A--Authorization of Appropriations
121
Subtitle B--Program Requirements, Restrictions, and Limitations
121
Independent estimate of costs of the Future Combat Systems (sec. 211)
121
Funding of defense science and technology program (sec. 212)
122
Hypersonics development (sec. 213)
122
Trident sea-launched ballistic missiles (sec. 214)
123
Subtitle C--Missile Defense Programs
124
Availability of research, development, test, and evaluation funds for fielding ballistic missile defense capabilities (sec. 231)
124
Policy of the United States on priorities in the development, testing, and fielding of missile defense capabilities (sec. 232)
124
One-year extension of Comptroller General assessments of ballistic missile defense programs (sec. 233)
127
Submittal of plans for test and evaluation of the operational capability of the ballistic missile defense system (sec. 234)
127
Annual reports on transition of ballistic missile defense programs to the military departments (sec. 235)
127
Subtitle D--Other Matters
128
Extension of requirement for Global Research Watch Program (sec. 251)
128
Expansion and extension of authority to award prizes for advanced technology achievements (sec. 252)
128
Policies and practices on test and evaluation to address emerging acquisition approaches (sec. 253)
129
Development of the propulsion system for the Joint Strike Fighter (sec. 254)
129
Independent cost analyses for Joint Strike Fighter engine program (sec. 255)
130
Sense of the Senate on technology sharing of Joint Strike Fighter technology (sec. 256)
131
Budget Items--Army
132
Army basic research
145
PACE early career awards
145
Army materials technology
146
Advanced microelectronics manufacturing
146
Unmanned payload concepts
147
Army missile technology
147
Hypervelocity ground testing
147
Multifunctional robot platform
147
Combat vehicle and automotive technology
147
Weapons and munitions technology
148
Human factors engineering
148
Mapping and detection of unexploded ordnance
148
Warfighter technology
149
Army medical technology
149
Advanced aviation technology
149
Unmanned tactical combat vehicles
149
Nanotechnology manufacturing
150
Combat vehicle research
150
Command and control team training
150
Advanced simulated training
150
Missile recycling capability
151
Advanced electronic integration
151
Advanced fuel cell research
151
Advanced Hypersonic Weapon modeling and simulation
151
Army missile and space modeling and simulation technology
151
Distributed operational control center
152
HighSentinel airship
152
Low cost avionics
152
Protected test link
153
Standoff sensor for radionuclides and explosives
153
Tactical operations center hardware and software integration
153
Thermal protection system technology risk reduction
153
Translation devices
154
Advanced Hypersonic Weapon development
154
Architecture Analysis Program
155
Environmental quality technology demonstration and validation at the Defense Ammunition Center
155
Counter rocket, artillery, and mortar
155
Unmanned aerial vehicle anti-icing technology
156
RAND Arroyo Center
156
Automated communications support
156
Biometric identification device
156
Portable iris enrollment and recognition device
157
Biometrics technology
157
Army manufacturing technology
157
Budget Items--Navy
157
Navy university research
170
Thermal management systems
170
Force protection applied research
170
High power, lightweight battery research
170
Human factors and organizational design
171
Sea basing technologies
171
Information sharing technologies
171
Power projection advanced technology
171
Force protection advanced technology
171
Common picture advanced technology
172
Warfighter sustainment technology
172
APY-6 real-time precision targeting radar
173
Marine Corps advanced technology
173
Visual integrated bridge system
173
Electro-optic Passive ASW System
173
Surface Navy Integrated Undersea Tactical Technology
174
Shipboard system component development
174
Marine Corps ground combat and supporting arms systems
175
Project Athena
175
Directed energy and electric weapon systems
176
Towed array improvements
176
Submarine design
177
Ship self-defense
178
NULKA anti-ship missile decoy development
178
Chiropractic treatment outcomes study
178
Navy medical research
179
F136 Interchangeable Engine
179
Marine Corps communications systems
179
Polymer-based improvised explosive device detection tools
180
Expeditionary assault bridge
180
Environmental intelligence for riverine operations
181
Vessel integrity system
181
National Shipbuilding Research Program--Advanced Shipbuilding Enterprise
181
Detection and recovery of unexploded ordnance, Browns Island, Camp Lejeune, North Carolina
182
Budget Items--Air Force
182
Air Force basic research
195
Air Force materials research
195
Applied aerospace propulsion
195
Space technology
195
MASINT visualization tool
196
Air Force materials technologies
196
Aerospace propulsion and power technology
196
Radically Segmented Launch Vehicle
196
Thin film amorphous solar arrays
197
Massively parallel optical interconnects for battlespace information exchange
197
Transformational Satellite Communications
197
Satellite command and control consolidation
198
Space Radar
198
Increased funding for O2 diesel particulate emission reduction research
200
Space control test capabilities
200
Joint space intelligent decision support
200
Global awareness presentation system
201
RAND Project Air Force
201
Ballistic missile range safety technology
201
Global command and control development center
201
Single integrated space picture
202
National Security Space Office
202
Air Force industrial preparedness activities
202
Budget Items--Defense-wide
203
Force protection basic research
217
National Defense Education Program
217
Detection of biological agents in water
217
Organic light emitting receptor-based nanosensors
217
Superstructural particle evaluation
218
Medical free electron laser
218
Alternative delivery of recombinant protein vaccines
218
Chemical and biological smart materials
218
Escape mask
218
Multipurpose biodefense immunoarray
219
Mustard gas antidote
219
Next-generation chemical biological protective suit
219
Personal protection against infectious agents
219
Rapid identification of biological warfare agents
220
Verification and validation of chemical agent persistence models
220
Tactical technology
220
Biochemical materials
220
Modeling and simulation
221
Wearable hyperspectral imaging system
221
Radiation detection technology
221
Advanced aerospace systems
221
Next Generation Gas Chromatographic Mass Spectrometer
221
Joint advanced concept technology demonstration
222
Joint robotic autonomous systems
222
Advanced mobile gas-to-liquid fueler
222
Defense Logistics Agency research and technology demonstrations
222
Dendrimer enhanced water remediation research
223
Computer modernization technologies
223
Command, control, and communications systems
224
Portable explosive detection
224
Joint modeling, simulation, and experimentation
224
Advanced tactical airborne command, control, communications, computer, intelligence, surveillance, and reconnaissance system
225
Advanced tactical laser
225
Flashlight soldier-to-soldier combat identification system
225
Small and medium caliber recoil mitigation technologies
226
Special Operations portable power source program
226
Anthrax and plague oral vaccine research and development
226
Airborne Infrared System
226
Corrosion prevention research
227
Playas command and control network
227
Militarily critical technologies support
228
Operationally responsive space payloads
228
DARPA management headquarters
228
Armed Forces medical and food research
228
High performance computational systems
229
Commercial airborne interferometric synthetic aperture radar imagery
229
Credibility assessment research
229
Combat sent wideband sensor upgrade
229
Castings for improved readiness
230
High performance defense manufacturing technology research and development
230
Helmet mount track system
230
Special Operations combat assault rifle
231
Wavelet packet modulation
231
Multi-spectral laboratory and analytical services center program
231
Special Operations wireless management and control project
232
Items of Special Interest
232
Airborne Laser
232
Air Force science, technology, test and evaluation
232
Future Combat Systems and current force interoperability
233
Information assurance progress report
234
Joint Tactical Radio System
235
Survey of science and engineering workforce shaping programs
235
Title III--Operation and Maintenance 237
Subtitle A--Authorization of Appropriations
237
Explanation of tables
237
Subtitle B--Program Requirements, Restrictions, and Limitations
272
Limitation on availability of funds for the Army Logistics Modernization Program (sec. 311)
272
Availability of funds for exhibits for the national museums of the Armed Forces (sec. 312)
272
Limitation on financial management improvement and audit initiatives within the Department of Defense (sec. 313)
273
Limitation on availability of operation and maintenance funds for the management headquarters of the Defense Information Systems Agency (sec. 314)
273
Subtitle C--Environmental Provisions
274
Response plan for remediation of military munitions (sec. 331)
274
Extension of authority to grant exemptions to certain requirements (sec. 332)
274
Research on effects of ocean disposal of munitions (sec. 333)
275
Clarification of multi-year authority to use base closure funds to fund cooperative agreements under Environmental Restoration Program (sec. 334)
276
Reimbursement of Environmental Protection Agency for certain costs in connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington (sec. 335)
276
Subtitle D--Reports
277
Comptroller General report on readiness of the ground forces of the Army and the Marine Corps (sec. 351)
277
Subtitle E--Workplace and Depot Issues
278
Minimum capital investment levels for public depots serviced by working capital funds (sec. 361)
278
Permanent exclusion of certain contract expenditures from percentage limitations on the performance of depot-level maintenance (sec. 362)
279
Additional exception to prohibition on contractor performance of firefighting functions (sec. 363)
279
Temporary security guard services for certain work caused by realignment of military installations under the base closure laws (sec. 364)
279
Subtitle F--Other Matters
279
Recycling of military munitions (sec. 371)
279
Incentives clauses in chemical demilitarization contracts (sec. 372)
280
Extension of Department of Defense telecommunications benefit program (sec. 373)
281
Extension of availability of funds for commemoration of success of the Armed Forces in Operation Enduring Freedom and Operation Iraqi Freedom (sec. 374)
281
Budget Items--Other Defense Programs
282
Chronic pain management research
282
Defense Health Program unobligated balances and administrative efficiencies
282
Medical education and training on Post-Traumatic Stress Disorder
283
Pregnancy recovery education program for military women and military spouses
283
Primary care enhancement for early detection and treatment of Post-Traumatic Stress Disorder
283
Robotic surgery for prostate cancer
284
Budget Items--Army
284
Battlefield mobility enhancers
284
UH-60 add on armor
284
Rapid Data Management System
284
Cognitive Air Defense Simulators
284
Army corrosion prevention and control
285
Blood bag transport modernization project
285
Quadruple specialty containers
285
Army Strategic Management System
285
Aviation and Missile Life Cycle Management Command Integrated Digital Environment pilot program
285
Military to civilian conversions
286
Working capital funds
287
Unobligated balances
288
Information assurance vulnerability alert cell
288
Connect and Join
288
Budget Items--Navy
289
Long arm high-intensity arc metal halide handheld searchlight
289
Man Overboard Identification safety system
289
Mark-45 gun system overhauls
289
Navy Marine Corps Intranet program management
289
Civilian personnel pay in excess of requirements
290
Budget Items--Marine Corps
290
Acclimate high performance undergarments
290
Cold Weather Layering System
290
Command Post-Large
291
Individual Water Purifier System
291
Portable tent lighting
291
Ultra-light Camouflage Net System
291
Marine Corps corrosion prevention and control
291
Budget Items--Air Force
292
Joint Modular Ground Targets and Urban Close Air Support site
292
F-16 supply chain management DMSMS program
292
Air Force space surveillance system
292
Consequence management
292
Interoperable communications
293
National capital region operational enhancements
293
National Security Space Institute
293
Tuition assistance
294
Budget Items--Defense-wide
294
Gamma Radiation Detection System
294
Information assurance scholarship program
294
Meals Ready to Eat war reserve stockpile
294
Increased funding for conservation buffer zones
295
Citizen-Soldier Support Program
295
Institute for national security information analysis
295
Budget Items--Army Reserve
296
Army Reserve budget justification materials
296
Military technicians pay in excess of requirements
296
Budget Items--Air Force Reserve
296
Air Force Reserve training, test and ferry flying hours
296
Budget Items--Army National Guard
297
Battlefield mobility enhancers
297
Operator driving simulator
297
Weapons of Mass Destruction Civil Support Teams sustainment training and evaluation program
297
Weapons of Mass Destruction Civil Support Teams upgrades
298
Budget Items--Air National Guard
298
Warrior skills and convoy trainer
298
Budget Items--Transfer Accounts
298
Funding for Formerly Used Defense Sites
298
Increased funding for clean up of unexploded ordnance at BRAC sites
299
Items of Special Interest
299
40 mm day/night training cartridge
299
Comptroller General study of the Defense Transportation Coordination Initiative
300
Defense Information System Network Access Transport Services
300
Defense Readiness Reporting System
301
Defense Travel System
301
Department of Defense foreign language training
302
Marine Aviation Training Transformation savings
303
Performance of certain work by federal government employees
303
Radio frequency identification report
303
Training Range Vegetation Encroachment
304
Title IV--Military Personnel Authorizations 305
Subtitle A--Active Forces
305
End strengths for active forces (sec. 401)
305
Repeal of requirement for permanent end strength levels to support two major regional contingencies (sec. 402)
306
Subtitle B--Reserve Forces
307
End strengths for Selected Reserve (sec. 411)
307
End strengths for Reserves on active duty in support of the Reserves (sec. 412)
307
End strengths for military technicians (dual status) (sec. 413)
308
Fiscal year 2007 limitation on number of non-dual status technicians (sec. 414)
308
Maximum number of Reserve personnel authorized to be on active duty for operational support (sec. 415)
308
Subtitle C--Authorizations of Appropriations
309
Military personnel (sec. 421)
309
Armed Forces Retirement Home (sec. 422)
309
Budget Items
309
Unobligated balances
309
Reserves cost avoidance
309
Title V--Military Personnel Policy 311
Subtitle A--Officer Personnel Policy
311
Part I--Officer Personnel Policy Generally
311
Military status of officers serving in certain intelligence community positions (sec. 501) 311
Extension of temporary reduction of time-in-grade requirement for eligibility for promotion for certain active-duty list officers in grades of first lieutenant and lieutenant (junior grade) (sec. 502) 311
Extension of age limits for active-duty general and flag officers (sec. 503) 311
Modification of authorities on senior members of the Judge Advocate General's Corps (sec. 504) 312
Requirement for significant joint experience for officers appointed as Surgeon General of the Army, Navy, and Air Force (sec. 505) 312
Grade and exclusion from active-duty general and flag officer distribution and strength limitations of officer serving as Attending Physician to the Congress (sec. 506) 313
Discretionary separation and retirement of chief warrant officers, W-4, twice failing selection for promotion (sec. 507) 313
Increased mandatory retirement ages for Reserve officers (sec. 508) 313
Part II--Officer Promotion Policy
314
Promotions (sec. 515) 314
Consideration of adverse information by promotion selection boards in recommendations on officers to be promoted (sec. 516) 314
Expanded authority for removal from reports of selection boards of officers recommended for promotion to grades below general and flag grades (sec. 517) 314
Clarification of nondisclosure requirements applicable to promotion selection board proceedings (sec. 518) 315
Special selection board authorities (sec. 519) 315
Removal from promotion lists of officers returned to the President by the Senate (sec. 520) 315
Part III--Joint Officer Management Requirements
316
Modification and enhancement of general authorities on management of joint qualified officers (sec. 526) 316
Modification of promotion policy objectives for joint officers (sec. 527) 317
Applicability of joint duty assignment requirements limited to graduates of National Defense University schools (sec. 528) 317
Modification of definitions relating to jointness (sec. 529) 317
Subtitle B--Reserve Component Personnel Matters
318
Enhanced flexibility in the management of Reserve component personnel (sec. 531)
318
Expansion of activities authorized for Reserves under Weapons of Mass Destruction Civil Support Teams (sec. 532)
319
Modification of authorities relating to the Commission on the National Guard and Reserves (sec. 533)
319
Pilot program on reintegration of members of the National Guard into civilian life after deployment (sec. 534)
319
Subtitle C--Military Justice and Related Matters
320
Applicability of Uniform Code of Military Justice to members of the Armed Forces ordered to active duty overseas in inactive duty for training status (sec. 551)
320
Subtitle D--Education and Training Matters
320
Detail of commissioned officers as students at medical schools (sec. 561)
320
Expansion of eligibility to provide Junior Reserve Officers' Training Corps instruction (sec. 562)
321
Increase in maximum amount of repayment under education loan repayment for officers in specified health professions (sec. 563)
321
Increase in benefits under Health Professions Scholarship and Financial Assistance Program (sec. 564)
321
Report on Health Professions Scholarship and Financial Assistance Program (sec. 565)
321
Expansion of instruction available at the Naval Postgraduate School for enlisted members of the Armed Forces (sec. 566)
322
Modification of actions to address sexual harassment and sexual violence at the service academies (sec. 567)
322
Department of Defense policy on service academy and ROTC graduates seeking to participate in professional sports before completion of their active-duty service obligations (sec. 568)
322
Subtitle E--Defense Dependents Education Matters
323
Funding for assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees (sec. 571)
323
Impact aid for children with severe disabilities (sec. 572)
323
Plan to assist local educational agencies experiencing growth in enrollment due to force structure changes, relocation of military units, or BRAC (sec. 573)
324
Pilot program on parent education to promote early childhood education for dependent children affected by military deployment or relocation of military units (sec. 574)
324
Subtitle F--Other Matters
325
Administration of oaths (sec. 581)
325
Military ID cards for retiree dependents who are permanently disabled (sec. 582)
325
Military voting matters (sec. 583)
325
Presentation of Medal of Honor Flag to primary next of kin of Medal of Honor recipients (sec. 584)
326
Modification of effective period of authority to present recognition items for recruitment and retention purposes (sec. 585)
326
Military severely injured center (sec. 586)
326
Items of Special Interest
327
Funding for the Joint POW/MIA Accounting Command
327
Military medical recruiting
328
Title VI--Compensation and Other Personnel Benefits 331
Subtitle A--Pay and Allowances
331
Fiscal year 2007 increase in military basic pay and reform of basic pay rates (sec. 601)
331
Increase in maximum rate of basic pay for general and flag officer grades (sec. 602)
331
Clarification of effective date of prohibition on compensation for correspondence courses (sec. 603)
331
One-year extension of prohibition against requiring certain injured members to pay for meals provided by military treatment facilities (sec. 604)
332
Additional housing allowance for Reserves on active duty in support of a contingency operation (sec. 605)
332
Extension of temporary continuation of housing allowance for dependents of members dying on active duty to spouses who are members of the uniformed services (sec. 606)
332
Subtitle B--Bonuses and Special and Incentive Pays
333
Extension of certain bonus and special pay authorities for Reserve Forces (sec. 611)
333
Extension of certain bonus and special pay authorities for certain health care professionals (sec. 612)
333
Extension of special pay and bonus authorities for nuclear officers (sec. 613)
333
Extension of authorities relating to payment of other bonuses and special pays (sec. 614)
333
Increase in special pay for Selected Reserve health care professionals in critically short wartime specialties (sec. 615)
333
Expansion and enhancement of accession bonus authorities for certain officers in health care specialties (sec. 616)
334
Increase in nuclear career accession bonus for nuclear-qualified officers (sec. 617)
334
Modification of certain authorities applicable to the targeted shaping of the Armed Forces (sec. 618)
334
Extension of pilot program on contributions to Thrift Savings Plan for initial enlistees in the Army (sec. 619)
335
Subtitle C--Travel and Transportation Allowances
335
Expansion of payment of replacement value of personal property damage during transport at Government expense (sec. 631)
335
Subtitle D--Retired Pay and Survivor Benefits
336
Modification of Department of Defense contributions to Military Retirement Fund and Government contributions to Medicare-Eligible Retiree Health Care Fund (sec. 641)
336
Repeal of requirement of reduction of SBP survivor annuities by dependency and indemnity compensation (sec. 642)
336
Effective date of paid-up coverage under Survivor Benefit Plan (sec. 643)
337
Expansion of conditions for direct payment of divisible retired pay (sec. 644)
337
Authority for cost of living adjustments of retired pay treated as divisible property (sec. 645)
337
Notice and copy to members of court orders on payment of retired pay (sec. 646)
338
Retention of assistive technology and devices by certain members of the Armed Forces after separation from service (sec. 647)
338
Subtitle E--Other Matters
338
Audit of pay accounts of members of the Army evacuated from a combat zone for inpatient care (sec. 661)
338
Item of Special Interest
339
Department of Defense child care services
339
Title VII--Health Care 341
Subtitle A--Benefits Matters
341
Improved procedures for cancer screening for women (sec. 701)
341
National mail-order pharmacy program (sec. 702)
341
Availability under TRICARE of anesthesia for children in connection with dental procedures for which dental anesthesia is inappropriate (sec. 703)
341
TRICARE coverage for forensic examinations following sexual assaults and domestic violence (sec. 704)
342
Prohibition on increase in fiscal year 2007 in enrollment fees for coverage under TRICARE Prime (sec. 705)
342
Limitation on fiscal year 2007 increase in premiums for coverage under TRICARE of members of Reserve components who commit to continued service in Selected Reserve after release from active duty (sec. 706)
342
Subtitle B--Planning, Programming, and Management
342
Treatment of TRICARE Retail Pharmacy Network under Federal procurement of pharmaceuticals (sec. 721)
342
Relationship between the TRICARE program and employer-sponsored group health care plans (sec. 722)
343
Enrollment in the TRICARE program (sec. 723)
343
Incentive payments for the provision of services under the TRICARE program in medically underserved areas (sec. 724)
343
Standardization of claims processing under TRICARE program and Medicare program (sec. 725)
344
Requirements for support of military treatment facilities by civilian contractors under TRICARE (sec. 726)
344
Uniform standards for access to health care services for wounded or injured servicemembers (sec. 727)
345
Disease and chronic care management (sec. 728)
345
Post-deployment health assessments for members of the Armed Forces returning from deployment in support of a contingency operation (sec. 729)
346
Subtitle C--Studies and Reports
346
Pilot projects on early diagnosis and treatment of Post Traumatic Stress Disorder and other mental health conditions (sec. 741)
346
Annual reports on certain medical malpractice cases (sec. 742)
347
Comptroller General study on the Department of Defense pharmacy benefits program (sec. 743)
348
Comptroller General audits of Department of Defense health care costs and cost-saving measures (sec. 744)
348
Review of Department of Defense medical quality improvement program (sec. 745)
348
Subtitle D--Other Matters
349
Extension of limitation on conversion of military medical and dental positions to civilian medical and dental positions (sec. 761)
349
Items of Special Interest
349
Sustaining the military health care benefit
349
Basrah Children's Hospital, Iraq
350
Mental Health Self-Assessment Program
350
Services for autism
351
TRICARE customer service
351
Title VIII--Acquisition Policy, Acquisition Management, and Related Matters 353
Subtitle A--Acquisition Policy and Management
353
Additional certification requirements for major defense acquisition programs (sec. 801)
353
Extension and enhancement of Defense Acquisition Challenge Program (sec. 802)
353
Baseline description and unit cost reports for major defense acquisition systems (sec. 803)
354
Major automated information system programs (sec. 804)
354
Adjustment of original baseline estimates for major defense acquisition program experiencing cost growth resulting from damage caused by hurricanes Katrina, Rita, and Wilma (sec. 805)
355
Internal controls for procurements on behalf of the Department of Defense by certain non-defense agencies (sec. 806)
356
Regulations on use of fixed price contracts in development programs (sec. 807)
356
Availability of funds for performance-based logistics contracts for weapons systems logistics support (sec. 808)
358
Quality control in procurement of ship critical safety items and related services (sec. 809)
359
Three-year extension of requirement for reports on commercial price trend analyses of the Department of Defense (sec. 810)
359
Pilot program on time-certain development in acquisition of major weapon systems (sec. 811)
359
Subtitle B--Defense Industrial Base Matters
360
Removal of hand and measuring tools from certain requirements (sec. 821)
360
Substitution of speciality metals with titanium and nickel under certain requirements (sec. 822)
360
Waiver authority for domestic source or content requirements (sec. 823)
360
Repeal of requirement for identification of essential military items and military system essential item breakout list (sec. 824)
361
Consistency with United States obligations under trade agreements (sec. 825)
361
Subtitle C--Defense Contractor Matters
361
Requirements for defense contractors relating to certain former Department of Defense officials (sec. 841)
361
Lead systems integrators (sec. 842)
361
Linking of award and incentive fees to acquisition outcomes (sec. 843)
362
Prohibition on excessive pass-through charges (sec. 844)
363
Report on Department of Defense contracting with contractors or subcontractors employing members of the Selected Reserve (sec. 845)
364
Subtitle D--Program Manager Matters
364
Program Manager Matters (secs. 861-865)
364
Subtitle E--Other Matters
366
Clarification of authority to carry out certain prototype projects (sec. 871)
366
One-year extension of special temporary contract closeout authority (sec. 872)
366
One-year extension of inapplicability of certain laws to contracting with employers of persons with disabilities (sec. 873)
366
Items of Special Interest
367
Application and interpretation of the Berry amendment
367
Brand-name specifications
368
Clarification of rapid acquisition authority to respond to combat emergencies
369
Coal gasification report
369
Contracting with Federal Prison Industries
370
Past performance evaluations
370
Title IX--Department of Defense Organization and Management 373
Subtitle A--Duties and Functions of Department of Defense Officers and Organizations
373
United States Military Cancer Institute (sec. 901)
373
Senior acquisition executive for Special Operations within staff of the Assistant Secretary of Defense for Special Operations and Low Intensity Conflicts (sec. 902)
373
Subtitle B--Space Activities
373
Establishment of operationally responsive space capabilities (sec. 911)
373
Extension of authority for pilot program on provision of space surveillance network services to non-United States Government entities (sec. 912)
374
Subtitle C--Other Matters
374
Department of Defense policy on unmanned systems (sec. 921)
374
Executive Schedule level IV for Deputy Under Secretary of Defense for Logistics and Materiel Readiness (sec. 922)
375
Three-year extension of joint incentives program on sharing of health care resources by the Department of Defense and Department of Veterans Affairs (sec. 923)
376
Title X--General Provisions 377
Subtitle A--Financial Matters
377
Transfer authority (sec. 1001)
377
Authorization of supplemental appropriations for fiscal year 2006 (sec. 1002)
377
Reduction in certain authorizations due to savings relating to lower inflation (sec. 1003)
377
Increase in fiscal year 2006 general transfer authority (sec. 1004)
378
United States contribution to NATO common-funded budgets in fiscal year 2007 (sec. 1005)
378
Modification of date of submittal of OMB/CBO report on scoring of outlays (sec. 1006)
378
Prohibition on parking of funds (sec. 1007)
378
Subtitle B--Naval Vessels
379
Repeal requirement for 12 operational aircraft carriers within the Navy (sec. 1011)
379
Approval of transfer of naval vessels to foreign nations by vessel class (sec. 1012)
380
Subtitle C--Counterdrug Matters
381
Extension of availability of funds for unified counterdrug and counterterrorism campaign in Colombia (sec. 1021)
381
Extension of authority of Department of Defense to provide additional support for counterdrug activities of other governmental agencies (sec. 1022)
381
Extension and expansion of certain authorities to provide additional support for counterdrug activities (sec. 1023)
381
Subtitle D--Defense Intelligence and Related Matters
382
Two-year extension of authority to engage in commercial activities as security for intelligence collection activities (sec. 1031)
382
Annual report on intelligence oversight activities of the Department of Defense (sec. 1032)
382
Administration of pilot project on Civilian Linguist Reserve Corps (sec. 1033)
382
Improvement of authorities on the National Security Education Program (sec. 1034)
383
Subtitle E--Defense Against Terrorism and Related Security Matters
383
Enhancement of authority to pay monetary rewards for assistance in combating terrorism (sec. 1041)
383
Use of the Armed Forces in major public emergencies (sec. 1042)
383
Treatment under Freedom of Information Act of certain confidential information shared with State and local personnel (sec. 1043)
385
Subtitle F--Miscellaneous Authorities on Availability and Use of Funds
385
Acceptance and retention of reimbursement from non-Federal sources to defray Department of Defense costs of conferences (sec. 1051)
385
Minimum annual purchase amounts for airlift from carriers participating in the Civil Reserve Air Fleet (sec. 1052)
386
Increased flexibility in the use of funds for Joint Staff exercises (sec. 1053)
386
Subtitle G--Report Matters
387
Report on clarification of prohibition on cruel, inhuman, and degrading treatment or punishment (sec. 1061)
387
Reports on members of the Armed Forces and civilian employees of the Department of Defense serving in the Legislative Branch (sec. 1062)
387
Additional element in annual report on chemical and biological warfare defense (sec. 1063)
388
Report on Local Boards of Trustees of the Armed Forces Retirement Home (sec. 1064)
388
Repeal of certain report requirements (sec. 1065)
388
Subtitle H--Technical and Conforming Amendments
389
Uniform definition of national security system for certain Department of Defense purposes (sec. 1071)
389
Conforming amendment relating to redesignation of Defense Communications Agency as Defense Information Systems Agency (sec. 1072)
389
Technical amendment (sec. 1073)
389
Subtitle I--Other Matters
389
National Foreign Language Coordination Council (sec. 1081)
389
Support of successor organizations of the disestablished Interagency Global Positioning System Executive Board (sec. 1082)
390
Sense of Congress on the Quadrennial Defense Review (sec. 1083)
390
Items of Special Interest
391
Developing a new staff structure for combatant command headquarters
391
Distributed decision support systems
391
Report on Special Operations Command UAV intelligence collection requirements
392
Title XI--Department of Defense Civilian Personnel Policy 393
Accrual of annual leave for members of the uniformed services on terminal leave performing dual employment (sec. 1101)
393
Strategy for improving the senior management, functional, and technical workforce of the Department of Defense (sec. 1102)
393
Authority to equalize allowances, benefits, and gratuities of personnel on official duty in Iraq and Afghanistan (sec. 1103)
394
Item of Special Interest
395
Highly qualified experts
395
Title XII--Matters Relating to Other Nations 397
Subtitle A--General Matters
397
Expansion of humanitarian and civic assistance to include communications and information capacity (sec. 1201)
397
Modification of authorities relating to the Regional Defense Counterterrorism Fellowship Program (sec. 1202)
397
Logistic support of allied forces for combined operations (sec. 1203)
397
Exclusion of petroleum, oil, and lubricants from limitations on amount of liabilities the United States may accrue under acquisition and cross-servicing agreements (sec. 1204)
398
Temporary authority to use acquisition and cross-servicing agreements to loan significant military equipment to foreign forces in Iraq and Afghanistan for personnel protection and survivability (sec. 1205)
398
Modification of authorities relating to the building of the capacity of foreign military forces (sec. 1206)
399
Participation of the Department of Defense in multinational military centers of excellence (sec. 1207)
401
Distribution of education and training materials and information technology to enhance interoperability (sec. 1208)
401
Subtitle B--Report Matters
402
Report on increased role and participation of multinational partners in the United Nations Command in the Republic of Korea (sec. 1221)
402
Report on interagency operating procedures for stabilization and reconstruction operations (sec. 1222)
403
Title XIII--Cooperative Threat Reduction With States of the Former Soviet Union 405
Specification of Cooperative Threat Reduction programs and funds (sec. 1301)
405
Funding allocations (sec. 1302)
405
Extension of temporary authority to waive limitation on funding for chemical weapons destruction facility in Russia (sec. 1303)
405
Title XIV--Authorization for Increased Costs Due to Operation Iraqi Freedom and Operation Enduring Freedom 407
Overview
407
Summary table of authorization
407
Purpose (sec. 1401)
413
Army procurement (sec. 1402)
413
Marine Corps procurement (sec. 1403)
413
Air Force procurement (sec. 1404)
413
Operation and Maintenance (sec. 1405)
413
Defense Health Program (sec. 1406)
413
Military personnel (sec. 1407)
413
Joint Improvised Explosive Device Defeat Fund (sec. 1408)
413
Classified programs (sec. 1409)
413
Iraq Freedom Fund (sec. 1410)
413
Treatment as additional authorizations (sec. 1411)
414
Transfer authority (sec. 1412)
414
Availability of funds (sec. 1413)
414
Budget Items
414
UH-60M Black Hawk helicopters
414
CH-47F cargo helicopters
414
Patriot missile defense system
414
M1A1 Abrams integrated management and tank urbanization upgrade kits
415
High mobility multipurpose wheeled vehicles
415
Heavy expanded mobile tactical truck extended service program
416
Land mobile radios
416
Profiler
416
Assault Amphibious Vehicle/7A1 product improvement program
416
High mobility artillery rocket system re-supply system armor
417
Gunner protection kits
417
Family of explosive ordnance demolition equipment
417
Up-armored high mobility multipurpose wheeled vehicles
418
Abrams M1A1 Abrams Integrated Management program
418
Navy flying hour program
418
Aviation depot maintenance
418
Ship operations
419
Ship depot maintenance
419
Marine Corps depot maintenance funding
419
Joint improvised explosive device defeat defense fund
419
Division B--Military Construction Authorizations 421
Explanation of funding tables
421
Costs to implement the decisions of the 2005 Defense Base Closure and Realignment round
443
2005 Defense Base Closure and Realignment accounts authorized for appropriations in 2006
444
2005 Defense Base Closure and Realignment accounts
448
Short title (sec. 2001)
455
Title XXI--Army 457
Summary
457
Authorized Army construction and land acquisition projects (sec. 2101)
457
Family housing (sec. 2102)
457
Improvements to military family housing units (sec. 2103)
457
Authorization of appropriations, Army (sec. 2104)
457
Items of Special Interest
457
Planning and design, Army
457
Management of military programs in the United States Army Corps of Engineers
458
Title XXII--Navy 461
Summary
461
Land Acquisition, Marine Corps Air Station, Beaufort, South Carolina
461
Authorized Navy construction and land acquisition projects (sec. 2201)
462
Family housing (sec. 2202)
463
Improvements to military family housing units (sec. 2203)
463
Authorization of appropriations, Navy (sec. 2204)
463
Modification of authority to carry out certain fiscal year 2006 projects (sec. 2205)
463
Title XXIII--Air Force 465
Summary
465
Authorized Air Force construction and land acquisition projects (sec. 2301)
465
Family housing (sec. 2302)
465
Improvements to military family housing units (sec. 2303)
465
Authorization of appropriations, Air Force (sec. 2304)
466
Modification of authority to carry out certain fiscal year 2006 project (sec. 2305)
466
Item of Special Interest
466
Change of project title at Cape Canaveral, Florida
466
Title XXIV--Defense Agencies 467
Summary
467
Authorized Defense Agencies construction and land acquisition projects (sec. 2401)
468
Family housing (sec. 2402)
468
Energy conservation projects (sec. 2403)
468
Authorization of appropriations, Defense Agencies (sec. 2404)
468
Modification of authority to carry out certain fiscal year 2006 projects (sec. 2405)
468
Title XXV--North Atlantic Treaty Organization Security Investment Program 469
Summary
469
Authorized NATO construction and land acquisition projects (sec. 2501)
469
Authorization of appropriations, NATO (sec. 2502)
469
Title XXVI--Guard and Reserve Forces Facilities 471
Summary
471
Authorized Guard and Reserve construction and land acquisition projects (sec. 2601)
471
Item of Special Interest
471
Planning and design, Air National Guard
471
Title XXVII--Expiration and Extension of Authorizations 473
Expiration of authorizations and amounts required to be specified by law (sec. 2701)
473
Extension of authorizations of certain fiscal year 2004 projects (sec. 2702)
473
Extension of authorizations of certain fiscal year 2003 projects (sec. 2703)
473
Effective date (sec. 2704)
473
Title XXVIII--General Provisions 475
Subtitle A--Military Construction Program and Military Family Housing Changes
475
Three-year extension of temporary, limited authority to use operation and maintenance funds for construction projects outside the United States (sec. 2801)
475
Authority to carry out military construction projects in connection with industrial facility investment program (sec. 2802)
475
Modification of notification requirements related to cost variation authority (sec. 2803)
476
Consideration of local comparability of floor areas in construction, acquisition, and improvement of military unaccompanied housing (sec. 2804)
476
Increase in thresholds for unspecified minor military construction projects (sec. 2805)
477
Inclusion of military transportation and support systems in energy savings programs (sec. 2806)
477
Repeal of authority to convey property at closed or realigned military installations to support military construction (sec. 2807)
477
Repeal of requirement to determine availability of suitable alternate housing for acquisition in lieu of construction of new family housing (sec. 2808)
478
Updating foreign currency fluctuation adjustment for certain military family housing leases in Korea (sec. 2809)
478
Pilot projects for acquisition or construction of military unaccompanied housing (sec. 2810)
479
Certification required for certain military construction projects (sec. 2811)
479
Modification of land acquisition authority, Perquimans County, North Carolina (sec. 2812)
480
Naming of research laboratory at Air Force Rome Research Site, Rome, New York, in honor of Sherwood L. Boehlert, a Member of the House of Representatives (sec. 2813)
480
Subtitle B--Real Property and Facilities Administration
480
Consolidation of easement provisions (sec. 2821)
480
Authority to grant restrictive easements for conservation and environmental restoration purposes (sec. 2822)
480
Consolidation of provisions relating to transfers of real property within the Department of Defense and to other Federal agencies (sec. 2823)
481
Authority to use excess property as exchange under agreements to limit encroachments on military training, testing, and operations (sec. 2824)
481
Modification of utility system authority and related reporting requirements (sec. 2825)
481
Increase in authorized maximum lease term for certain structures and real property relating to structures in foreign countries (sec. 2826)
482
Modification of land transfer authority, Potomac Annex, District of Columbia (sec. 2827)
482
Subtitle C--Base Closure and Realignment
482
Defense Economic Adjustment Program: research and technical assistance (sec. 2831)
482
Extension of eligibility for community planning assistance related to certain military facilities not under Department of Defense jurisdiction (sec. 2832)
483
Modification of deposit requirement in connection with lease proceeds received at military installations approved for closure or realignment after January 1, 2005 (sec. 2833)
483
Subtitle D--Land Conveyances
483
Land conveyance, Radford Army Ammunition Plant, Virginia (sec. 2841)
483
Modifications to land conveyance authority, Engineering Proving Ground, Fort Belvoir, Virginia (sec. 2842)
484
Land conveyance, Omaha, Nebraska (sec. 2843)
484
Items of Special Interest
484
Electronic access to data related to 2005 Defense Base Closure and Realignment Round
484
Facilities for Headquarters, United States Southern Command
485
National Guard Training Site, Camp Atterbury, Indiana
486
Division C--Department of Energy National Security Authorizations and Other Authorizations 489
Title XXXI--Department of Energy National Security Programs 489
Overview
489
Subtitle A--National Security Programs
512
National Nuclear Security Administration (sec. 3101)
512
Defense environmental clean-up (sec. 3102)
515
Other defense activities (sec. 3103)
516
Defense nuclear waste disposal (sec. 3104)
517
Subtitle B--Other Matters
518
Notice and wait requirement applicable to certain third party financing arrangements (sec. 3111)
518
Utilization of international contributions to the Global Threat Reduction Initiative (sec. 3112)
518
Utilization of international contributions to the Second Line of Defense Core Program (sec. 3113)
519
Extension of Facilities and Infrastructure Recapitalization Program (sec. 3114)
519
Two-year extension of authority for appointment of certain scientific, engineering, and technical personnel (sec. 3115)
519
Extension of deadline for transfer of lands to Los Alamos County, New Mexico, and of lands in trust for the Pueblo of San Ildefonso (sec. 3116)
520
Limitation on availability of funds for Waste Treatment and Immobilization Plant (sec. 3117)
520
Limitation on availability of funds for implementation of the Russian Surplus Fissile Materials Disposition Program (sec. 3118)
522
Limitation on availability of funds for construction of MOX Fuel Fabrication Facility (sec. 3119)
523
Technical correction related to authorization of appropriations for fiscal year 2006 (sec. 3120)
523
Items of Special Interest
524
The role of the Kansas City Plant in the nuclear weapons program
524
Transparency in budgeting for security requirements
524
Title XXXII--Defense Nuclear Facilities Safety Board 525
Authorization (sec. 3201)
525
Legislative Requirements
525
Departmental Recommendations
525
Committee Action
526
Congressional Budget Office Cost Estimate
526
Regulatory Impact
526
Changes in Existing Law
526
Additional Views of Senator John Cornyn
527
Additional Views of Senator Bill Nelson, Florida
528

109TH CONGRESS

Report

SENATE

2d Session

109-254
AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2007 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES

MAY 9, 2006- Ordered to be printed

Mr. WARNER, from the Committee on Armed Services, submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany S. 2766]

The Committee on Armed Services reports favorably an original bill to authorize appropriations during the fiscal year 2007 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes, and recommends that the bill do pass.

PURPOSE OF THE BILL

This bill would:

      (1) authorize appropriations for (a) procurement, (b) research, development, test and evaluation, (c) operation and maintenance and the revolving and management funds of the Department of Defense for fiscal year 2007;

      (2) authorize the personnel end strengths for each military active duty component of the Armed Forces for fiscal year 2007;

      (3) authorize the personnel end strengths for the Selected Reserve of each of the reserve components of the Armed Forces for fiscal year 2007;

      (4) impose certain reporting requirements;

      (5) impose certain limitations with regard to specific procurement and research, development, test and evaluation actions and manpower strengths; provide certain additional legislative authority, and make certain changes to existing law;

      (6) authorize appropriations for military construction programs of the Department of Defense for fiscal year 2007; and

      (7) authorize appropriations for national security programs of the Department of Energy for fiscal year 2007.

Committee overview and recommendations

From Europe to the Middle East and from Asia to Africa, the presence of U.S. forces and their contributions to regional peace and security reassure our allies and deter our adversaries. Since 2001, U.S. armed forces have been engaged in the global war on terrorism. Today, there are over 250,000 uniformed personnel deployed or stationed in approximately 120 countries. U.S. military forces are involved in overseas deployments at an unprecedented rate.

Currently, the central battlegrounds in the war on terrorism are in Iraq and Afghanistan. For each of these countries, the road to peace, stability, and democracy has been marked by historical milestones, with elections that chose a permanent government, a referendum that adopted a permanent constitution, and progress in building security forces capable of protecting their nation's freedom. Behind the backdrop of these achievements, U.S. forces continue the difficult work of counterinsurgency, stabilization, and reconstruction. Beyond the borders of Iraq and Afghanistan, U.S. armed forces are engaged in a broad array of missions, ranging from counterinsurgency and counterterrorism training to keeping the peace, fighting terrorists, providing humanitarian assistance and disaster relief, and participating in civil-military operations.

The accomplishments in Iraq, Afghanistan, and the global war on terrorism are a tribute to the dedication and skills of our men and women in uniform who are willing to respond to the call to duty, and to the military leaders who lead them. The successes achieved have come at a great sacrifice to the members of the armed forces and their families and the countless civilians and contractors who support them. Tragically, many have been killed while serving in Iraq and Afghanistan, and many others have been wounded. A grateful nation remembers and honors their sacrifices.

While addressing current threats to our nation's security and planning for emerging threats, the military faces a number of challenges, including increasing health care costs, operational readiness and recruiting and retention, modernization and transformation of the armed forces during a time of war, and reforming the acquisition system. The National Defense Authorization Act for Fiscal Year 2007 addresses these challenges, while continuing a tradition of providing the best training, equipment, and protection possible for the American warfighter.

In conjunction with the submission of the President's budget request, the Department of Defense released its Quadrennial Defense Review (QDR) Report. This QDR is the second conducted by this administration and the first to be conducted in wartime. The QDR reflects a continuing shift from the predominately conventional warfare of the last century toward the irregular warfare of today and the projected disruptive warfare of the future. The QDR also reflects a process of change that has occurred since the terrorist attacks against the United States on September 11, 2001, and has been accelerated by the lessons learned in Iraq and Afghanistan. The Department has promised to issue updates to its originally released report as additional assessments are completed.

This QDR is forward-looking, including recommendations on initiatives for the near and long term to provide the United States with the capabilities it needs to secure its freedom in the decades ahead. Some of these recommendations will be implemented in fiscal year 2007 and others in future years. The committee carefully reviewed all the Department's proposals and included some of them in this bill.

The committee believes that further explanation and analysis is needed on how the Department integrates threat assessments into its capabilities-based force structure planning; the assumptions and planning guidelines that informed the recommended capabilities necessary to meet future threats; and a more comprehensive risk assessment that describes the additional capabilities that would be needed to mitigate risks. The committee will undertake a careful review of the QDR in the months ahead, including a review of subsequent assessments completed by the Department.

To date, in the second session of the 109th Congress, the Committee on Armed Services has conducted 36 hearings and received numerous policy and operational briefings on the President's budget request for fiscal year 2007 and related defense issues. During the course of these deliberations, the committee identified seven priorities to guide its work on the National Defense Authorization Act for Fiscal Year 2007. These priorities include:

      (1) providing our men and women in uniform with the resources, training, technology, equipment, and authorities they need to win the global war on terrorism, with a particular focus on supporting ongoing operations in Iraq and Afghanistan;

      (2) enhancing the ability of the Department to fulfill its homeland defense responsibilities by providing the resources, authorities, and equipment necessary for the Department to assist in protecting our nation against current and anticipated forms of attack;

      (3) providing the resources and authorities needed to rapidly acquire the full range of force protection capabilities for deployed forces;

      (4) continuing the committee's commitment to improve the quality of life for those who serve--active, Reserve, National Guard, and retired--and their families; enhancing incentives to recruit and retain those who volunteer to serve in the armed forces; providing the best possible care and rehabilitation services for those who bear the wounds of combat; and ensuring generous support for the survivors of those military personnel killed in the defense of our nation;

      (5) sustaining the readiness of our armed forces to conduct military operations against current and anticipated threats;

      (6) supporting the Department's efforts to develop innovative, forward-looking capabilities necessary to modernize and transform the armed forces to successfully counter current and future threats, particularly by enhancing our technology in areas such as unmanned systems, personnel protection systems, and measures to counter improvised explosive devices; and

      (7) continuing active committee oversight of Department programs and operations, particularly in the areas of acquisition reform and contract management, to ensure proper stewardship of taxpayers' dollars.

The President's budget for defense for fiscal year 2007 builds on the investments made in recent years by providing real increases in defense spending to combat terrorism and secure the homeland, to enhance the quality of life of our military personnel and their families, and to modernize and transform the U.S. armed forces to meet current and future threats.

In order to fund these priorities, the committee, following the Senate-passed budget resolution, recommended $467.7 billion in budget authority for defense programs for fiscal year 2007, an increase of $26.2 billion--or 4.1 percent in real terms--above the amount authorized by the Congress in fiscal year 2006. The committee authorized $85.7 billion in procurement funding, a $2.8 billion increase above the President's budget request; $74.2 billion in funding for research, development, test, and evaluation, a $1.0 billion increase over the requested level; and $112.0 billion for military personnel, a $1.3 billion increase over the requested level. The committee also recommended $50.0 billion in emergency supplemental funding for fiscal year 2007 for activities in support of operations in Iraq, Afghanistan, and the global war on terrorism.

To provide the Department with the resources it needs to win the global war on terrorism, the committee provided the following resources to U.S. forces:

(1) For ground forces, the committee authorized more than $33.0 billion for ground and aviation equipment, an increase of almost $1.0 billion, and $2.1 billion for the procurement of equipment needed for the global war on terrorism for the Army and Marine Corps in the bridge supplemental.

(2) For special operations forces, the committee added nearly $90.0 million, including $66.7 million to procure critical equipment to prosecute the global war on terrorism; and nearly $20.0 million for research, development, test, and evaluation programs.

(3) For the Navy and Marine Corps, the committee authorized $3.6 billion for vertical lift assets.

(4) For air forces, the committee set forth policy prohibiting the incremental funding of aircraft and provided full funding for the F-22A Raptor. The committee authorized an additional $1.4 billion for the procurement of 20 F-22A aircraft.

(5) For strategic airlift, the committee authorized $2.6 billion, including two additional C-17A aircraft, for total procurement of 14 C-17A aircraft.

The committee also provided the Department with important resources and authorities to enhance its ability to defend the homeland against man-made or natural disasters or missile attacks.

(1) In the areas of chemical and biological defense, and chemical weapons demilitarization, the committee added $71.0 million for chemical and biological agent detection, and the development and fielding of technology to counter the threat of chemical and biological weapons.

(2) To more effectively support local, state, and federal agencies in response to man-made or natural disasters, the committee authorized the Secretary of Defense to approve the deployment of Weapons of Mass Destruction-Civil Support Teams (WMD-CST) to Canada and Mexico, if requested; expanded the types of emergencies for which the Secretary of Defense may prepare or employ WMD-CST; and added $13.5 million for the development of a sustainable training program, and for equipment upgrades to ensure the standardization of equipment for all the teams. The committee also included a provision that would update the Insurrection Act to clarify the President's authority to use the armed forces, including the National Guard in federal service, to restore order and enforce federal laws in cases where, as a result of a terrorist attack, epidemic, or natural disaster, public order has broken down.

(3) To defend the United States, its deployed forces, and its allies against missile attack, the committee authorized $10.5 billion for ballistic missile defense, but shifted funds from long-term developmental efforts to support near-term capabilities.

As our forces undertake important missions abroad and at home, the committee placed high priority on force protection for U.S. deployed forces. The committee closely monitors force protection capabilities available to deployed forces, and remains actively engaged with the Department to ensure that all requirements to improve force protection are fully funded. Accordingly, the committee authorized over $1.0 billion for various programs to protect personnel, vehicles, and installations, including: an additional $950.5 million for force protection equipment, including $559.8 million for up-armored high mobility multipurpose wheeled vehicles; and $100.0 million for counter-IED engineer vehicles. The committee also authorized $2.1 billion for the Joint Improvised Explosive Device Defeat Fund to facilitate the rapid development of new technology and tactics and the rapid deployment of equipment to counter improvised explosive devices (IED); and an additional $45.8 million for various projects to procure and develop IED countermeasures.

Investing in our uniformed personnel remains among the committee's highest priorities. To improve the quality of life of our armed forces--active, Reserve, National Guard, and retired--and their families, the committee authorized a 2.2 percent across-the-board pay raise for all military personnel and a mid-year targeted pay raise for mid-level non-commissioned officers and warrant officers.

Additionally, in the area of health care, the committee recognized that the Department faces the challenge of increasing health care costs, and recommended a number of health care reform steps. The committee remains concerned about the ability of the military health care system to identify and prevent post-traumatic stress disorder and other mental health conditions related to deployments, and approved expansion of pilot programs to address these needs for both active and reserve component members. Among the reforms authorized, the committee included a provision to prohibit the payment by employers of financial incentives to TRICARE-eligible retirees to encourage them to use TRICARE instead of the health insurance offered to other employees. While the committee has acted to greatly increase use of the more economical mail order pharmacy program, the committee also included a provision to clarify that the Department's retail pharmacy program qualifies for federal pricing, as authorized in title 38, United States Code. However, the committee did not authorize requested increases in TRICARE enrollment fees in fiscal year 2007, and directed the Comptroller General to conduct a comprehensive analysis of the Department's health care costs and savings proposal.

Benefits and services available to family members are also important to their quality of life. The committee recognizes the sacrifices and hardships endured by family members. As such, the committee fully funded all of the benefits for family members included in the President's budget request, and extended the telecommunications benefit for deployed and hospitalized soldiers.

In addition, following the Senate-passed budget resolution, the committee included a provision to repeal the requirement for reduction of annuities received by surviving spouses under the Survivor Benefit Plan (SBP) by the amount of any dependency and indemnity compensation also received. Additionally, the committee accelerated the effective date for paid-up coverage under the SBP from October 1, 2008, to October 1, 2006.

To sustain the readiness of the armed forces to perform critical missions, the committee added funding to address shortfalls in a number of key readiness accounts. Over the past five years, U.S. ground forces have experienced high operational tempo due to combat operations and sustained overseas missions. In response, the committee authorized active-duty end strengths of 512,400 for the Army, 30,000 over the requested level; 340,700 for the Navy; 180,000 for the Marine Corps, 5,000 over the requested level; and 334,200 for the Air Force. The committee also authorized end strength for the Army National Guard at 350,000, providing that, in the event the National Guard is unable to recruit up to the 350,000 level, unused personnel funds may only be used to procure Army National Guard equipment. The committee supported a variety of incentives and bonuses for active duty and reserve components to ensure the Department can recruit and retain the highest-quality volunteer force.

In order to confront irregular warfare threats, the Department must modernize and transform the armed forces. Since 2001, the Department has undergone significant modernization and transformation even during a time of war. The committee supported the Department's transformational activities, including authorizing funds for the construction of eight ships, for a total of $12.1 billion; including a provision to promote coordinated joint development, procurement, and operation of unmanned systems; adding funds for the continued development of the Joint Strike Fighter interchangeable engine during fiscal year 2007; authorizing the budget request of $3.7 billion for the Army's Future Combat Systems program; and authorizing an increase of nearly $365.0 million over the President's budget request of $11.1 billion for science and technology programs.

The committee remains concerned about the size of the Navy's fleet. As a maritime nation, the strength of our economy, the face of our diplomacy, the course of our foreign policy, and the security of our nation are built upon the Navy's ability to maintain global presence and to exercise freedom of maneuver upon the seas. However, in the last 15 years, there has been a declining trend in shipbuilding and a diminishing capacity in the shipbuilding industrial base. The fleet has been reduced to its smallest size since before World War II. The committee believes that prudent decisions must be made to reverse the current trend in the construction of warships, or risk our margin of naval superiority for the next generation.

To strengthen the shipbuilding program and the industrial base, the committee included provisions to:

      (1) fund the construction of eight warships (one more than the President's request) and two new warship classes;

      (2) implement a long-range plan for the procurement of three ships of the future aircraft carrier class-CVN-21, which will improve the affordability of the future aircraft carrier class by authorizing multiple ship material procurements and stable funding over four year increments;

      (3) lay the groundwork to increase the submarine building rate to ensure continued undersea superiority; and

      (4) increase investment in the National Shipbuilding Research Program.

To provide more flexible capabilities to the warfighter, the committee supported increased investment in unmanned systems. In the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, the committee established initial requirements for the use of unmanned air and ground combat vehicles. Five years later, the time has come to build upon the commitment made by this committee. Accordingly, the committee included a provision directing the Secretary of Defense to develop a department-wide policy for development and operation of unmanned systems.

Increasingly, the committee has emphasized the importance of developing capabilities to plan and conduct coalition operations. Ten years ago, the committee expressed concerns regarding the lack of engine competition in the Joint Strike Fighter program. As a result, the committee included a provision in the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106) that directed the Secretary of Defense to evaluate at least two propulsion concepts from competing engine companies. Recently, the committee held hearings to review the Department's unilateral proposal, despite legislative direction to maintain a two-engine program, to eliminate the development of the F136 alternate interchangeable engine from the Joint Strike Fighter program. The committee remains concerned that relying on one engine provider to perform multiple missions, for multiple services and multiple nations presents an unnecessary operational and financial risk to the United States. Accordingly, the committee authorized provisions adding $400.8 million for the continued development of the interchangeable engine during fiscal year 2007; and directing the Secretary of Defense to continue the development and sustainment of the Joint Strike Fighter program with two competitive propulsion systems throughout the life of the aircraft or enter into a one-time, firm-fixed-price contract for a single propulsion system throughout the life of the aircraft.

Finally, in the areas of acquisition and contract management, the committee took a number of steps over the last decade to improve the Department's acquisition and procurement of services, equipment, and weapons systems. Similarly, the Department completed a significant review of the defense acquisition systems for major weapons programs, which will impact the Department's acquisition system. To continue the momentum of past efforts to improve the Department's acquisition system, the committee included provisions:

      (1) requiring major automated information systems that breach cost, schedule, or performance goals to follow similar reporting requirements to other major defense acquisition programs;

      (2) authorizing the Department to conduct a pilot program using time-certain development in the acquisition of major weapons systems;

      (3) requiring better alignment of authority and tenure of program managers with desired acquisition outcomes;

      (4) ensuring evaluation of contract performance is linked to acquisition outcomes and that award and incentive fees are used appropriately to incentivize excellent performance;

      (5) establishing a preference for fixed-price contract for development programs; and

      (6) establishing a senior acquisition executive for U.S. Special Operations Command.

In addition to the above priorities, the committee addressed the QDR priorities of strengthening interagency operations and providing greater flexibility in the United States Government's ability to partner directly with nations in fighting terrorism. Increasingly, operations have become more interagency and coalition in nature and will be for the forseeable future. In this regard, the United States Government must employ all instruments of national power to achieve peace and security in the troubled regions around the world. Accordingly, the committee:

      (1) included a provision that would require the President to develop a plan to establish interagency operating procedures for federal agencies to plan and conduct stabilization and reconstruction operations;

      (2) included a provision that would provide the heads of all executive branch agencies the same authorities the Secretary of State has with respect to providing allowances, benefits, and death gratuities for Foreign Service or civilian personnel serving in Iraq and Afghanistan;

      (3) expanded authorities for geographic combatant commanders to train and equip foreign military forces, and to provide urgent humanitarian relief and reconstruction assistance to foreign nations;

      (4) expanded authority to provide logistics support, supplies, and services to allies and coalition partners;

      (5) expanded Department authority to lease or lend equipment for personnel protection and survivability to allies and coalition partners participating in combined military operations with U.S. forces; and

      (6) required a coordinated United States Government legal opinion on whether certain, specified interrogation techniques comply with the prohibition on cruel, inhuman, or degrading treatment or punishment set out in the Detainee Treatment Act of 2005.

As the committee considers the National Defense Authorization Act for Fiscal Year 2007, much work remains to be done in Iraq, Afghanistan, and other locations to secure hard-won military successes and to preserve peace and freedom. To continue the momentum of the past five years in the global war on terrorism, the Congress and the executive branch must work together to build on the considerable strengths of our military and their record of success. To ensure the security of America, the U.S. armed forces must be sustained, modernized, and transformed. The committee believes that the National Defense Authorization Act for Fiscal Year 2007 sustains the advances made in recent years, and provides the necessary investments to prepare for the future.

Explanation of funding summary

The administration's budget authorization request for the national defense function of the federal budget for fiscal year 2007 was $505.4 billion, including a request for $50.0 billion in emergency supplemental spending for ongoing operations in Iraq and Afghanistan. According to the estimating procedures used by the Congressional Budget Office (CBO), the budget implication of the amount requested was $512.9 billion. The funding summary table that follows uses the budget authority as calculated by CBO.

The following table summarizes both the direct authorizations and equivalent budget authority levels for fiscal year 2007 defense programs. The columns relating to the authorization request do not include funding for the following items: military construction authorizations provided in prior years; and other portions of the defense budget that are not within the jurisdiction of this committee, or that do not require an annual authorization.

Funding for all programs in the national defense function is reflected in the columns related to the budget authority request and the total budget authority implication of the authorizations in this report.

The committee recommends funding for national defense programs totaling $517.7 billion in budget authority, including an authorization of $50.0 billion in emergency supplemental spending for ongoing operations in Iraq and Afghanistan. This funding is within the budget authority level for the national defense function recommended in the Senate version of the Concurrent Resolution on the Budget for Fiscal Year 2007 (S. Con Res. 83), which was adopted by the Senate on March 16, 2006.

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DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

Explanation of tables

The following tables provide the program-level detailed guidance for the funding authorized in title I of this Act. The tables also display the funding requested by the administration in the fiscal year 2007 budget request for procurement programs, and indicate those programs for which the committee either increased or decreased the requested amounts. As in the past, the administration may not exceed the authorized amounts (as set forth in the tables or, if unchanged from the administration request, as set forth in budget justification documents of the Department of Defense), without a reprogramming action in accordance with established procedures. Unless noted in this report, funding changes to the budget request are made without prejudice.

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SUBTITLE B--ARMY PROGRAMS

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Limitation on availability of funds for the Joint Network Node (sec. 111)

The committee recommends a provision that would withhold 50 percent of the funds authorized to be appropriated in section 101(5) for the procurement of the Joint Network Node until the Secretary of the Army provides a report, to the congressional defense committees, no later than March 15, 2007, on the Army's strategy for the convergence of the Joint Network Node, the Warfighter Information Network--Tactical, and the Mounted Battle Command On-the-Move communications programs. The required report will include program requirements, funding, program schedule, implementation plan and acquisition strategy.

The budget request included $7,718.6 million in Other Procurement, Army, including $178.0 million for the Joint Network Node, $79.0 million for the Mounted Battle Command on the Move (MBCOTM) system, but no funding for the Warfighter Information Network-Tactical (WIN-T) programs. The budget request also included $69.2 million in PE 64818A for Army Tactical Command and Control Hardware and Software, including $16.6 million for MBCOTM development, and $158.2 million in PE 63782A for WIN-T development.

The Joint Network Node (JNN) responds to a 2004 urgent needs statement from U.S. Central Command to provide communications capabilities better than the current Mobile Subscriber Equipment in Army units today. The requirement was met with commercial-off-the-shelf-based equipment using a sole source contract. The committee notes that the JNN is not a joint program and that the Army General Counsel has stated that JNN must be competitively procured. Further, the Director, Operational Test and Evaluation's Fiscal Year 2005 Annual Report, states that, `the Army continues to procure JNN as an interim satellite capability without conducting an Operational Test and Evaluation.' The committee is concerned that the required operational test and evaluation has not been completed for the JNN.

The committee understands that the WIN-T program meets the same requirements as JNN but with greater capability. Moreover, WIN-T will provide a communications-on-the-move capability while the JNN will not. In September 2004, after competitively awarding two contracts for the Systems Development and Demonstration (SDD) phase for the WIN-T communications system, the Army received approval to merge the winning contractors into a single team to accelerate WIN-T development. After funding the program in fiscal years 2005 and 2006, due to affordability concerns, the Army abruptly restructured the WIN-T program, delaying fielding until 2010. The committee believes this is an ill-advised decision. JNN and WIN-T are duplicative programs, with WIN-T providing on-the-move capabilities to Army commanders, a long-standing requirement. It has been estimated that the Army will require an additional $1.9 billion to field JNN to all Army units. It is the committee's understanding that the Army intends to replace JNN with WIN-T sometime in the future. The committee is concerned that the Army cannot afford to field both JNN and WIN-T.

The committee notes the conference report accompanying the fiscal year 2006 Department of Defense Appropriations Act contained a requirement that the Army submit a plan, no later than January 15, 2006, for procuring evolutionary capability in its network communications packages. The Army is still evaluating the program and has not yet submitted the required report. The committee believes that the Army plans to restructure the WIN-T program to field WIN-T in 2008 and strongly supports the initiative to accelerate the WIN-T program.

The committee recommends a reduction of $100.0 million for JNN procurement and an increase of $100.0 million to restore WIN-T procurement in Other Procurement, Army. The committee expects the future procurement of JNN to be competitively awarded and that both JNN and WIN-T equipment should be procured using a firm fixed-price contract.

Comptroller General report on the contract for the Future Combat Systems program (sec. 112)

The committee recommends a provision that would require the Comptroller General to submit to the congressional defense committees a report on the participation and activities of the lead systems integrator in the Future Combat Systems (FCS) program under the contract of the Army for the FCS program. The report would provide a description of the responsibilities of the lead systems integrator and the Army under the FCS contract; an assessment of the manner in which the Army ensures that the lead systems integrator meets the goals of the FCS program; an identification of the mechanisms in place to ensure the protection of the interests of the United States in the FCS program; and an identification of the mechanisms in place to mitigate organizational conflicts of interest with respect to competition on FCS technologies and equipment under the subcontracts under the FCS program.

Section 212 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) directed the Secretary of the Army to procure the FCS through a contract under part 15 of the Federal Acquisition Regulation, rather than through a transaction under section 2371 of title 10, United States Code. The committee congratulates the Army on completing the definitization of the FCS contract on March 29, 2006 and directs the Comptroller General to review the contract to assist the Congress and the Department understand the complexities of contracting for a system-of-systems contract with a lead systems integrator.

Reports on Army Modularity Initiative (sec. 113)

The committee recommends a provision that would require the Secretary of the Army to submit a report to the congressional defense committees no later than March 15, 2007, on the manner in which the Army distinguishes costs under its modularity initiative from costs under its modernization and reset programs; a line item identification of the amount of modularity funded to date and the amount of modularity to be funded in future budgets; how modularity equipment will be allocated to the active and Reserve components; a plan for further testing and evaluation of modular designs; and a summary of any lessons learned to date from the modular brigades that have been established and deployed to Iraq and Afghanistan. The provision also requires that the Comptroller General conduct an annual review of the modularity initiative on the progress the Army is making in the equipping of the active and Reserve components.

In 2004 the Army estimated modularity costs at $28.0 billion. In a report, `Preliminary Observations on Army Plans to Implement and Fund Modular Forces,' dated March 16, 2005, the Government Accountability Office stated that `the costs associated with modularizing the entire Army are substantial, continuing to evolve, and likely to grow beyond current estimates. As of March 2005, the Army estimated it will need about $48 billion to fund modularity representing an increase of 71 percent from its earlier estimate of $28 billion in 2004.' The estimate now stands at $52.5 billion. However, this estimate may not reflect all potential costs, such as for fully equipping the modular force as designed. The committee expects the Secretary of the Army to address in the report all costs required to achieve full operational capability for all modular units, including, but not limited to, amounts required for equipment, training, and permanent facilities and infrastructure to adequately support military personnel and their families. The committee believes that until the Army provides a better understanding of the requirements and costs associated with modularity, DOD will not be well positioned to weigh competing priorities and make informed decisions nor will the Congress have the information it needs to evaluate funding requests.

There is some question regarding the definition of the modularity initiative. The Army has stated that it required $5.0 billion per year over the fiscal years 2005-2011 for the modularity initiative. In a fiscal year 2006 Program Budget Decision Memorandum, the Department increased the Army's top line by $5.0 billion in each of the fiscal years 2007-2011 for modularity to be included in the President's budget request. DOD and the Army said they would use fiscal year 2005 and fiscal year 2006 supplemental appropriations to cover the requirement for those two years. Both the fiscal year 2006 enacted bridge supplemental and the fiscal year 2006 supplemental budget request included $5.0 billion. However, the fiscal year 2006 supplemental request was also expected to include $3.0 billion in additional funding for Abrams tanks and Bradley Fighting Vehicles required for modularity, but that request was dropped in the final stages of formulation before it was sent to Congress.

The fiscal year 2007 budget request proposed to restructure the Army National Guard to 28 brigade combat teams and 78 combat support brigades and to fund the Army National Guard to its current manning level of 333,000 rather than to its currently authorized end strength of 350,000. This proposal resulted in opposition from Congress, governors, the National Guard Association and the adjutants general. As a result, the Army has announced that it will maintain the National Guard at its 350,000 authorized end strength and will fund whatever manning level the National Guard can recruit to in fiscal year 2007. The Army also announced it will follow through with its plan to change the composition of the Army National Guard force structure to 28 brigade combat teams and 78 combat support brigades and commit $20.0 billion to National Guard equipment. This will put additional funding pressure on the Army as it modularizes the active and Reserve components. The committee believes that an annual progress report is required to monitor the Army's progress in modularizing both the active and Reserve components.

BUDGET ITEMS--ARMY

Future Cargo Aircraft

The budget request included $109.2 million in Aircraft Procurement, Army (APA) for the procurement of three Future Cargo Aircraft (FCA). The FCA would support the intra-theater lift mission. However, the aircraft mix and the number of intra-theater aircraft assets required for this mission have yet to be determined and were not addressed in the recently completed Mobility Capabilities Study. In recent testimony, the Commander of the United States Transportation Command gave his support to the Department's Intra-Theater Lift Capability Study, Phases 1 and 2, to identify the right mix and number of intra-theater aircraft assets required. The Air Force is also interested in procuring a similar type of aircraft and is in the process of establishing a joint program office with the Army for a new intra-theater light cargo aircraft that will be known as the Joint Cargo Aircraft. The Air Force is only now beginning a series of functional analysis studies and an independent Air Force analysis of alternatives to define their requirement for the aircraft, and to consider which options will meet their requirements. Until these studies are complete, and have been presented to the congressional defense committees, the committee believes that it is premature to procure aircraft until the right mix and number of intra-theater aircraft assets have been determined.

The Committee notes that the recent Request for Proposals released by the Department of the Army for procurement of the Joint Cargo Aircraft includes maintenance and sustainment of this new weapon system and provides for no organic logistics capability. The Committee notes that 10 U.S.C. 2464 requires the Department to maintain a core logistics capability and that the department develop organic maintenance capability for most weapon systems not later than four years after initial operating capability for such weapon systems. The Army Request for Proposals does not address this issue. The Committee further notes that the Joint Cargo Aircraft is a joint Army-Air Force program and that Air Force Air Logistics Centers could be able to sustain this weapon system. The Committee expects that any Request for Proposals for the Joint Cargo Aircraft account for the requirements of 10 U.S.C. 2464. The committee recommends a decrease of $109.2 million in APA for the Future Cargo Aircraft.

Surface-launched advanced medium range air-to-air missile

The budget request included $12.0 million in Missile Procurement, Army, for the Surface-Launched Advanced Medium Range Air-to-Air Missile (SLAMRAAM) and $10.0 million for advanced procurement funding for long-lead items. The committee understands that the SLAMRAAM Milestone C scheduled for September 2007 has been slipped one year to September 2008. Procurement funds will not be needed in fiscal year 2007. The committee recommends a decrease of $22.0 million in Missile Procurement, Army, for SLAMRAAM, for a total authorization of no funding.

M1A1 Abrams tank and M2A2 Bradley fighting vehicle upgrades

The budget request included $456.1 million in Procurement of Weapons and Tracked Combat Vehicles, Army. Of this amount, $285.0 million is for the upgrade of various Bradley Fighting Vehicles (BFV) variants and $171.1 million is for the conversion of M1A2 Abrams tanks into the M1A2 System Enhancement Package (SEP) Abrams tank configuration.

The committee notes that the fiscal year 2007 budget request for BFV upgrades and M1A2 SEP tanks creates production breaks in the BFV and M1A2 SEP production lines and reflects the Army's assumption that Army modularity could be funded in Defense supplemental requests for programs that should be funded in base budget requests. The Army's reliance on Defense supplemental requests reflects the Army's poor management of scarce resources and disregard for the impact the Army program has on the defense industrial base. Budget justification material submitted by the Army reflects an underfunded program for both BFV upgrades and M1A2 SEP conversions and causes breaks in production.

Programming and budgeting based on the assumption of Defense supplemental requests is inefficient and wastes taxpayer dollars. For instance, according to Army budget justification documents, in fiscal year 2005, the weapon system procurement unit cost for the M1A2 SEP was $4.6 million based on 124 M1A2 SEPs. In fiscal year 2007, the weapon system procurement unit cost is listed as $7.4 million based on 23 M1A2 SEPs.

Additional funding for the BFV upgrades and M1A2 Sep conversions has been included on the Chief of Staff of the Army's fiscal year 2007 unfunded priority list. The committee recommends an increase of $238.8 million for BFV upgrades and $170.0 million for M1A2 SEP tank conversions, in Procurement of Weapons and Tracked Combat Vehicles, Army, for a total authorization of $523.8 million for BFV upgrades and $341.1 million for M1A2 SEPs.

The committee's recommendation increases funding for BFV upgrades and M1A2 SEP conversions to cover minimum sustainment rates for the production of these vehicles. The committee strongly encourages the Army to develop funded BFV and M1A2 SEP programs, based on a multiyear procurement strategy, for the fiscal year 2008 budget request. The Army should also consider requesting multiyear procurement authority to introduce price and production stability into these programs.

M113 Armored personnel carrier family of vehicles

The budget request included $23.0 million in Procurement of Weapons and Tracked Combat Vehicles, Army, for the conversion of M113A2 Armored Personnel Carrier Family of Vehicles (FOV) to the M113A3 FOV configuration. The committee notes that the Army has a requirement to convert 310 M113A2s to support the Army's modularity initiative. Additional funding for the conversion of 310 M113A2s to the M113A3 configuration has been included on the Chief of Staff of the Army's fiscal year 2007 unfunded priority list. The committee recommends an increase of $139.0 million in Procurement of Weapons and Tracked Combat Vehicles, Army, for additional M113A2 conversions, for a total authorization of $162.0 million.

M1028 120mm tank cartridge

The budget request included $0.9 million in Procurement of Ammunition, Army (PAA), for the M1028 120mm tank cartridge. The committee notes the utility of the M1028 in improving the M1A1 Main Battle Tank's urban warfare capability. The committee recommends an increase of $9.2 million in PAA for the M1028.

M915 105mm Dual Purpose Improved Conventional Munition artillery cartridge

The budget request included $45.6 million in Procurement of Ammunition, Army (PAA), for 105 mm artillery cartridges of all types, but included no funding for the M915 105 mm Dual Purpose Improved Conventional Munition (DPICM), Load, Assemble, and Pack (LAP) artillery cartridge. The committee is aware that the M915 is the only 105 mm DPICM cartridge, and that it is extremely important for light forces. The committee recommends an increase of $12.2 million in PAA to complete the LAP of the components already in the inventory.

Rapid wall breaching kit

The budget request included no funding in Procurement Ammunition, Army (PAA), for the rapid wall breaching kit. The committee notes that rapid wall breaching kits are one-man portable devices capable of creating man-sized holes in triple brick masonry or double reinforced concrete structural walls. The committee recommends an increase of $4.0 million in PAA for rapid wall breaching kits.

Ammunition peculiar equipment outloading module

The budget request included no funding for ammunition peculiar equipment outloading modules. The committee notes that a modern robotic-controlled strategic ammunition outloading module would be capable of supporting current readiness requirements, while increasing ammunition plant safety, security, and capacity. Army officials report that a design exists for modernizing current outloading capabilities with robotic-controlled technologies at ammunition plants. The committee recommends an increase of $6.0 million in Procurement of Ammunition, Army, for ammunition peculiar equipment outloading modules.

Automated Tactical Ammunition Classification System

The budget request included $10.3 million in Procurement Ammunition, Army (PAA), for ammunition peculiar equipment. The committee understands the logistical difficulties inherent in the large amounts of ammunition turned in by combat units leaving a combat theater, which must be inspected and reissued to new units. Previously, this inspection and processing activity has been done by hand, which is extremely manpower intensive. The committee recommends an increase of $5.0 million in PAA for additional development and procurement of a family of mobile Automated Tactical Ammunition Classification System units for near-term battlefield deployment.

Corrosion protective covers

The budget request included no funding to procure and evaluate corrosion protective covers for configurable loaded ammunition. The committee is aware that corrosion in harsh environments can cause damage to equipment as well as ammunition. The committee recommends an increase of $4.0 million in Procurement of Ammunition, Army, for corrosion protective covers to prevent corrosion of ammunition.

Insensitive munitions high-shear mixing system

The budget request included no funding for any upgrades at the Milan Army Ammunition Plant. After many years of neglect, upgrade of the munitions industrial facilities is critical, particularly given the increased usage rates caused by current operations. The committee recommends an increase of $7.5 million in Procurement of Ammunition, Army, to demonstrate, validate, and implement an insensitive munitions high-shear mixing system at the Milan Army Ammunition Plant.

Lake City Army Ammunition Plant

The budget request included $116.2 million in Procurement of Ammunition, Army (PAA), for the provision of industrial facilities, including $35.0 million for the Small Caliber Ammunition Modernization Program at Lake City Army Ammunition Plant. The committee is aware that a significant investment in new equipment and facilities at Lake City Army Ammunition Plant is required to provide the quantities of small caliber ammunition necessary to support ongoing operations in the global war on terror. The committee recommends an increase of $18.2 million in PAA to continue the modernization of the Lake City Army Ammunition Plant.

Modernization of forge equipment at Scranton Army Ammunition Plant

The budget request included $116.2 million in Procurement of Ammunition, Army (PAA), for the provision of industrial facilities, but included no funding for modernization at the Scranton Army Ammunition Plant. The committee is aware that the newest piece of government-owned forge equipment at Scranton is at least 30 years old. Much of Scranton's equipment has exceeded its useful life and is beginning to experience failures. The government has historically modernized this type of equipment at 10-year intervals. The committee understand the importance of investing in the munitions industrial base, after many years of deferring critical modernization. The committee recommends an increase of $4.0 million in PAA for modernization of forge equipment at Scranton Army Ammunition Plant.

Radford Army Ammunition Plant upgrades

The budget request included $116.2 million in Procurement of Ammunition, Army (PAA), for the provision of industrial facilities, including $56.2 million for operations and upgrades to the Radford Army Ammunition Plant. The committee recognizes that for many years, modernization of munition industrial facilities has not kept pace with the requirements of modern weapons systems and environmental regulations. Because of the interrelated work of these munitions plants, a disruption in one facility could cause disruptions in others, and thus cause a critical shortfall of munitions while our service members are engaged in combat operations.

The committee is aware that there is a backlog of critical modernization projects totaling $213.0 million at Radford Army Ammunition Plant, including a new steam plant, waste processing facilities to meet current environmental standards, and new explosives processing plants to improve efficiencies and reduce the risk of failure in a critical production area.

The committee recommends an increase of $63.56 million in PAA for the modernization of industrial facilities at the Radford Army Ammunition Plant, including $30.0 million to complete the new steam plant; $11.78 million to build new waste processing facilities and incinerators; $10.0 million to fund the first two phases of a modern nitroglycerine facility; and $11.8 million for Phase 2B of the upgrades to the nitrocellulose facility. The committee further directs the Army to develop a plan to complete the remaining $150.0 million in critical modernization projects at Radford over the next 3 years.

Defense advanced global positioning system receivers

The budget request included $61.6 million in other procurement, Army (OPA) for the procurement of Defense advanced global positioning system receivers (DAGR). DAGR provides a satellite-based navigation and timing system to enable warfighters to confirm their own locations for all phases of combat. The committee notes that emerging requirements associated with the global war on terrorism have led to a greater demand for DAGR than previously anticipated, and that DAGR has been included on the Chief of Staff of the Army's unfunded priorities list. The committee recommends an increase of $7.0 million in OPA to procure additional DAGRS.

Nonsystem training devices

The budget request included $243.1 million in Other Procurement, Army, for non-standard training devices, including $3.1 million for the Call for Fires Trainer (CFFT). The CFFT is a collective training system that provides a simulated battlefield for training forward observers at the institutional and unit level. The committee notes that the CFFT has proven to be a useful tool for soldiers preparing to deploy to the U.S. Central Command area of operations. Additional funding to accelerate CFFT fielding has been included on the Chief of Staff of the Army's fiscal year 2007 unfunded priority list. The committee recommends an increase of $4.0 million in Other Procurement, Army, for CFFT, for a total authorization of $247.1 million.

SUBTITLE C--NAVY PROGRAMS

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CVN-21 class aircraft carrier procurement (sec. 121)

The committee recommends a provision that would authorize the Secretary of the Navy to incrementally fund procurement of CVN-21 class aircraft carriers over four year periods, commencing with CVN-78 procurement in fiscal year 2008. The budget request included $739.1 million in Shipbuilding and Conversion, Navy (SCN) for CVN-78 advance procurement and $45.1 million in SCN for CVN-79 advance procurement. The provision would also authorize advance procurement for CVN-80, commencing in fiscal year 2007.

In reviewing the budget request for fiscal year 2006, the committee received testimony from the Navy and industry that the low rate of shipbuilding was driving higher costs, which in turn further reduced shipbuilding rates, creating a downward spiral. The committee believes that stable ship requirements, increased funding in the shipbuilding budget, and increased flexibility for funding large capital ships are critical elements of any strategy to reverse this trend.

The Secretary of the Navy's fiscal year 2007 report to Congress on the long-range plan for the construction of naval vessels identifies a requirement to procure the CVN-21 class aircraft carriers at 4-year intervals, commencing in fiscal year 2008. The Navy originally planned to procure the first CVN-21 class aircraft carrier, CVN-78, in fiscal year 2006. Since then, the Navy has delayed procurement to 2008, which has delayed fielding this vital capability, while significantly increasing the aircraft carrier's procurement cost. The committee believes that procuring and delivering the CVN-21 class aircraft carriers over 4-year periods in accordance with the Navy's long-range plan is vital to the National Defense Strategy, and is vital to the affordability of these capital ships.

Elsewhere in this report, the committee has expressed concern with cost growth on the CVN-77 program, and has urged the Navy and the shipbuilder to identify opportunities to improve affordability of future aircraft carriers. Procurement delays, excess inflation, and material escalation have been reported as significant contributors to CVN-77 cost growth. The shipbuilder has proposed to achieve significant CVN-21 class program savings through a stable procurement plan, and through procurement of economic order quantity material for CVN-79 and CVN-80 in conjunction with CVN-78 procurement.

In view of the potential for significant program savings, the committee recommends an increase of $50.0 million in SCN for CVN-21 class advance procurement, and directs the Secretary of the Navy to review economic order quantity and long lead time material procurement for the CVN-21 class. The Secretary is to submit a report to the congressional defense committees with the fiscal year 2008 budget request, outlining the advance procurement requirements to potentially optimize economic order quantity savings and escalation avoidance (to include offsetting factors) for the first three vessels of the CVN-21 class. Of the amount authorized to be appropriated for advance procurement for CVN-79 and CVN-80, none of the funds are available for obligation prior to 30 days following receipt of the Secretary's report.

Construction of first two vessels under the next-generation destroyer program (sec. 122)

The committee recommends a provision that would authorize the Secretary of the Navy to enter into a contract to fund the detail design and construction of the first two next-generation destroyers, DD(X), in Shipbuilding and Conversion, Navy (SCN), with funding split over fiscal years 2007 and 2008.

The budget request included $2,568.0 million in SCN for the DD(X) program, which is in addition to $1,010.1 million prior year advance procurement and $3,004.0 million subsequent year full funding for the construction of two DD(X) destroyers. The Navy's report on the long-range plan for the construction of naval vessels identified a requirement to procure a total of seven DD(X) destroyers commencing in fiscal year 2007. Section 125 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) prohibited the Secretary of the Navy from acquiring these vessels through a winner-take-all competition strategy. Section 123 of that same Act established a cost limitation for the fifth vessel of the program.

The Navy's procurement strategy for the next generation destroyer program is to allocate dual lead ships and competitively award follow-on ships to both of the two shipyards which build surface combatants. The Navy is in the process of determining details of the acquisition strategy for the follow ship contracts. The committee agrees with the Navy's determination that competition is an underlying benefit of dual sourcing, and that it is critical to meeting the fifth ship cost limitation established for the next generation destroyer program.

The committee is equally concerned with the risk that the dual lead ship strategy adds to the program. The committee is aware that the Navy added $150.0 million to the second lead ship budget to account for this risk. Nevertheless, the Congressional Budget Office has cited a significantly higher cost estimate for the DD(X) lead ship(s) than currently included in the Navy's budget. It is therefore critical that, in preserving the ability to compete follow-on ships, the Navy does not unduly increase lead ship cost risk and total program cost risk.

The committee understands that the Navy intends to award lead ship contracts following approval by the Defense Acquisition Board (DAB), currently planned for January 2008. The committee urges the DAB to carefully weigh affordability and risk mitigation considerations in arriving at a decision to approve award of the lead ship contracts. The committee directs the Secretary of the Navy to submit a report to the congressional defense committees, 30 days prior to lead ship contract(s) award, on the Navy's competition strategy for DD(X) follow ship procurement. The report shall identify the range of possible outcomes for awarding follow-on ships, the Navy's estimated cost for the respective ships, the estimated cost benefit provided by competition, the basis for determining contract award, and the type of contract planned for the award. The report shall also address potential impact of follow-on ship awards on the lead ship costs or schedules, including an assessment of workload impacts at the respective shipyards.

Modification of limitation on total cost of procurement of CVN-77 aircraft carrier (sec. 123)

The committee recommends a provision that would increase the limitation on the total cost of procurement for the CVN-77 aircraft carrier from $5.357 billion to $6.057 billion.

Section 122 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85) imposed a $4.6 billion procurement cost cap for the CVN-77, and authorized the Secretary of the Navy to adjust the cap for certain categories of cost. In accordance with Section 122, the Secretary reported authorized annual cost increases, which incrementally raised the CVN-77 cost cap to $5.357 billion. The February 2005 report on CVN-77 Program Cost identified $0.7 billion cost increase beyond the Secretary's authority, requiring Congress to increase the cost cap.

The procurement cost increase to $6.057 billion, which equals the government's maximum contractual liability, is attributed to extraordinary escalation impacts, increased labor hours and overhead rates, and costs related to schedule delays. The fiscal year 2007 budget request included $348.4 million for CVN-77 cost growth, with the balance of additional funding to be included in future budget requests. The committee is aware that the Navy has taken a series of management actions to contain cost on CVN-77, including deferral of upgrades that are not required for safe system operation or certification; minimization of contract change orders; implementation of a joint Navy-shipbuilder Lean Six-Sigma program; and a schedule revision to enable a more efficient completion of CVN-77. The committee is concerned, however, that despite these management actions, the Navy is projecting CVN-77 cost to grow to the contract ceiling, in excess of 30 percent above the baseline cost cap.

The committee notes that the Secretary's report to Congress on the long-range plan for construction of naval vessels establishes cost estimates for future ship construction, which target improved performance based on a series of management actions similar to ongoing efforts to control CVN-77 cost. Visibility into cost performance while completing CVN-77 is necessary in order to assess the effectiveness of these management actions, and will assist in determining further actions necessary to improve affordability of the future force. Improved visibility into completion cost performance will also afford greater opportunity to deliver CVN-77 below the contract ceiling. Accordingly, the Secretary of the Navy is directed to submit a quarterly report to the congressional defense committees, beginning December 1, 2006, providing the following information regarding the CVN-77 ship construction contract:

      (1) contract target cost;

      (2) Program Manager's Estimate at Completion;

      (3) contractor's Estimate at Completion;

      (4) contract ceiling price;

      (5) end of period actual costs; and

      (6) percent progress.

BUDGET ITEMS--NAVY

MH-60S and MH-60R helicopters

The budget request included $458.2 million in Aircraft Procurement, Navy (APN) for the procurement of 18 MH-60S Knight Hawk helicopters and $795.3 million for the procurement of 25 MH-60R Sea Hawk helicopters. The committee notes that the Navy reduced the number of MH-60 series helicopters from the Navy's fiscal year 2006 program plan. The Navy requires additional funding to acquire additional MH-60S for critical surface warfare capability coverage for Carrier and Expeditionary Strike Groups, and one additional MH-60R helicopters, allowing the initial MH-60R Carrier Strike Group squadron to deploy with full rotary wing capability in accordance with the Navy's Helicopter Concept of Operations. Additional funding for MH-60S and MH-60R helicopters has been included on the Chief of Naval Operations' unfunded priorities list. The committee recommends an increase of $112.0 million in APN for eight additional MH-60S helicopters, for a total authorization of $570.2 million and an increase of $28.0 million in APN for one additional MH-60R helicopter, for a total authorization of $823.8 million.

T-45TS Goshawk

The budget request included $376.4 million in Aircraft Procurement, Navy (APN) for the procurement of 12 T-45TS Goshawk training aircraft for the Navy. The future-years defense program indicates that the Navy intends to stop production with the fiscal year 2007 procurement. This would yield a total of 223 aircraft. The committee notes that the Navy's request for 12 T-45TS Goshawk training aircraft is nearly twice the number of aircraft requested in previous years. Moreover, the Chief of Naval Operations' unfunded priorities list includes an additional six aircraft.

The committee is concerned that a premature close out of T-45TS production, particularly in one budget request, would be harmful for two reasons. First, the Navy's longstanding requirement was for 234 aircraft. Since that determination, significant changes have occurred in the annual training requirements for pilots, and empirical data has replaced planning assumptions. Training requirements have grown rather than diminished. Moreover, the Navy's `T-45 Strategic Planning Study, 2003-2035,' identifies 239 trainers as the minimum number of aircraft needed to adequately support long-term pilot training requirements. For budgetary reasons, the requirement was reduced twice even as additional PTR requirements were added. The committee believes that, in order for the fleet to adequately support training requirements, the original requirement of 234 aircraft should remain the inventory objective. Second, the committee believes that the T-45TS, with requisite modifications, could serve as both the next-generation joint trainer and as a replacement for the Air Force T-38 trainer. The committee recommends a decrease of $64.0 million in APN for the procurement of a total of 10 T-45TS Goshawk training aircraft, and encourages the Navy to continue procurement to achieve at least the 234-aircraft inventory objective.

CH-53 Integrated Mechanical Diagnostic System (IMDS)

The budget request included $28.3 million in Aircraft Procurement, Navy (APN) for the H-53 series helicopters, including $2.3 million for the Integrated Mechanical Diagnostic System (IMDS). The committee notes that IMDS enhances safety and reduces helicopter life cycle costs. Additional funding for IMDS has been included on the Chief of Naval Operations' unfunded priorities list. The committee recommends an increase of $4.4 million in APN for IMDS, for a total authorization of $32.7 million.

Allegany Ballistics Laboratory facility restoration

The budget request included $4.6 million in Weapons Procurement, Navy (WPN) for various activities at government-owned, contractor operated weapons industrial facilities, but included no funding for facilities restoration at the Navy Industrial Reserve Ordnance Plant, Allegany Ballistics Laboratory (ABL). Some of these facilities have exceeded their useful life and deteriorated beyond safe operations. The committee recommends an increase of $20.0 million in WPN for the facilities restoration program at ABL.

Mk 110 57mm naval gun

The budget request included $8.9 million in Weapons Procurement (WPN), Navy for gun mount mods for in-service gun weapon systems, but included no funding for the Mk 110 57mm naval gun. The Mk 110 57mm naval gun is the newest gun system for surface ships and is planned for installation on the next generation destroyer, DD(X), the Littoral Combat Ship (LCS), the National Security Cutter, and the Offshore Patrol Cutter. A shore-based Mk 110 gun system for training, similar to other in-service gun training systems, is essential to ensure sailor proficiency in the safe operation and maintenance of shipboard Mk 110 gun systems. This is particularly true for new ship classes, which are designed for reduced manning and therefore less capable of supporting onboard training. The committee recommends an increase of $12.0 million in WPN for procurement of a Mk 110 57mm naval gun for a shore-based training system.

Mk 295/Mk 296 ammunition for Mk 110 57mm naval gun

The budget request included no funding for Mark 295 or Mark 296 ammunition for the Mark 110 57mm naval gun. Currently, the Navy and the Coast Guard borrow these rounds in very limited quantities from other friendly governments. The committee recommends an increase of $10.0 million in Procurement Ammunition Navy and Marine Corps for Mk 295/Mk 296 ammunition.

M67 hand grenade

The budget request included $3.0 million in Procurement of Ammunition, Navy and Marine Corps (PANMC), for M67 hand grenades. The committee recommends an increase of $10.0 million in PANMC for M67 hand grenades.

M290 nuclear refueling facility

The budget request included no funding for an M290 refueling facility. The committee is aware that the Navy is developing a more efficient shipping system, the M290 container system, for spent fuel to support refueling and de-fueling U.S. Navy aircraft carriers at Northrop Grumman Newport News (NGNN). Implementation of a more efficient, secure, and improved process for disposal of fuel is necessary to support refueling of USS Nimitz (CVN-68) class aircraft carriers during their mid-life complex overhauls, and for defueling USS Enterprise (CVN-65).

The committee believes infrastructure investment in an M290 facility is needed to support the end-to-end process changes being implemented by the Navy to prepare this special material for ultimate packaging for long-term storage at a federal facility. The committee understands that a $40.0 million capital incentive would be required to offset the negative net present value for the M290 facility investment, and that the incentive could be funded over 2 years to align with NGNN capital commitments and expenditures. The remainder of the funding for the facility would be provided by NGNN. The committee further understands that having this facility will provide an estimated $25.0 million savings per refueling/defueling operation.

The committee recommends an increase of $20.0 million in Shipbuilding and Conversion, Navy to provide the first increment of government incentive to start construction of the M290 refueling facility in 2008.

Procurement authority for LPD-17 class ship designated LPD-25

The budget request included $297.5 million in Shipbuilding and Conversion, Navy (SCN) for LPD-25 advance procurement. The committee recommends an increase of $1,285.0 million in SCN for procurement of the LPD-17 class ship, designated as LPD-25. This would allow the Secretary of the Navy to enter into a contract for LPD-25 in fiscal year 2007, rather than fiscal year 2008 under the current Navy plan.

The budget request for fiscal year 2006 included LPD-25 procurement for fiscal year 2007 as the ninth ship of a twelve ship program. The budget request for fiscal year 2007 truncated the LPD-17 class to nine ships and delayed LPD-25 procurement to fiscal year 2008. The committee is aware that procurement of LPD-25 in fiscal year 2007 will save $113.1 million in LPD-25 procurement cost by avoiding construction delays, escalation impacts, and loss of learning. Further, procurement of LPD-25 in 2007 will result in delivering this vital warfighting capability to the fleet at the earliest schedule possible, helping to reduce existing Marine Corps lift capability shortfalls. Additional funding for the LPD-25 has been included on the Chief of Naval Operations' unfunded priorities list.

The committee is concerned that the Secretary of the Navy's report to Congress on the long-range plan for construction of naval vessels calls for a reduction of six Expeditionary Warfare ships. This reduced expeditionary force size, which also reduces the LPD-17 class to nine ships, does not meet the Navy's established 2.5 Marine Expeditionary Brigade (MEB) lift requirement. In testimony before the Seapower Subcommittee of the Committee on Armed Services in March 2006, the Marine Corps stated that, `Limiting the LPD-17 production line to 9 ships places the Marine Corps at grave/significant risk by further decrementing the MEB equipment for the assault echelon.' As the Navy continues to evolve future lift requirements and evaluates capabilities that will comprise the expeditionary strike and sea basing forces, the committee strongly encourages the Navy to include funds for LPD-26 in the fiscal year 2008 budget request as the most cost effective near-term means to satisfy projected lift requirements.

Advance procurement authority for LHA replacement (LHA(R)) ship designated LHA-7

The committee recommends an increase of $175.0 million in Shipbuilding and Conversion, Navy (SCN) for advance procurement of the second ship of the LHA replacement (LHA(R)) class, designated LHA-7. This would allow the Secretary of the Navy to enter into a contract for LHA-7 advance procurement in fiscal year 2007, rather than fiscal year 2009 under the current plan.

The Secretary of the Navy's fiscal year 2007 report on the long-range plan for the construction of naval vessels identifies a requirement to procure the LHA replacement ships at a stable rate of one ship every 3 years, commencing in 2007. In testimony before the Committee on Armed Services, the Secretary of the Navy emphasized his number one priority is to stabilize the shipbuilding program to achieve the program's critical affordability objectives. The committee understands that material cost increases and excess inflation have been notable factors in cost growth of prior year ship programs. Conversely, savings of approximately 15 percent have historically been achieved through the economic order quantity procurement of material for multiple ships of a class.

The Navy plans to procure significant material for LHA-6 in fiscal year 2007, and further plans advance procurement for LHA-7 in fiscal year 2009. In view of the significant potential material cost savings provided by combining material procurement for LHA-7 with LHA-6, the committee recommends an increase of $175.0 million in SCN for LHA-7.

Outfitting and post-delivery

The budget request included $409.0 million in Shipbuilding and Conversion, Navy (SCN) for outfitting and post-delivery. Outfitting and post-delivery is a centrally-managed account for all SCN-funded ship programs, which is requested annually based on projected vessel delivery schedules. The committee is aware that delays to ship delivery schedules, related to performance issues and Hurricane Katrina impacts, have resulted in outfitting and post-delivery funding being requested in advance of execution requirements in the fiscal year 2007 budget request. Further, the committee urges the Navy to ensure that cost increases to the execution of outfitting and post-delivery attributed to Hurricane Katrina are properly financed in accordance with the provisions of title IX of the Department of Defense Appropriations Act for Fiscal Year 2006 (Public Law 109-148).

The committee recommends a decrease of $30.0 million in SCN for outfitting and post-delivery.

Completion of prior year shipbuilding

The budget request included $577.8 million in Shipbuilding and Conversion, Navy (SCN) for completion of prior year shipbuilding programs. The committee is aware that delays to ship delivery schedules, related to performance issues and Hurricane Katrina impacts, has resulted in completion of prior year shipbuilding funding being requested in advance of execution requirements for the LPD-17 class. The committee recommends a decrease of $20.0 million in SCN for completion of prior year shipbuilding.

Amphibious ship integrated bridge system

The budget request included $31.0 million in Other Procurement, Navy (OPN) for other navigation equipment, but included no funding for amphibious ship integrated bridge systems. The integrated bridge system (IBS) automatically collects, processes, integrates, and displays vital navigation sensor data on electronic charts to automatically and precisely control a ship's movement in accordance with an approved voyage plan. The committee is aware that the Navy directed all ships in the fleet to be equipped with an electronic chart display information system--Navy capability by the end of fiscal year 2009. Additional funding for IBS is necessary to accomplish amphibious ship installations in support of this requirement. The committee recommends an increase of $4.0 million in OPN for amphibious ship integrated bridge system.

DDG-51 Arleigh Burke-class destroyer modernization program

The budget request included $2.2 million in the Other Procurement, Navy (OPN) for the DDG-51 modernization program. This program upgrades the DDG-51 class with key technologies developed for future ships, which provide improved warfighting capability and reduce operating and support cost. The Secretary of the Navy's fiscal year 2006 report to Congress on the long-range plan for construction of naval vessels identified the requirement to operate the 62-ship DDG-51 class for a full 35-year service life in order to meet the Navy's surface combatant force structure requirements. The DDG-51 modernization program is essential to achieving this 35-year expected service life. Additionally, the upgrades planned for incorporation, which enable reduced crew size, improved maintainability, and improved commonality, are forecasted to provide savings of $712.0 million in operations and support for the 62-ship class.

Additional fiscal year 2007 DDG-51 modernization procurement funding is necessary to support planning, engineering, and initiate procurement activities in order to address backfit program issues, including configuration differences, mission life extension alterations, and initiatives to further reduce manpower requirements and costs in DDG-51 communications and combat systems operating spaces. The committee recommends an increase of $25.0 million in OPN for the DDG-51 modernization program.

High performance metal fiber brushes for shipboard motors and generators

The budget request included $25.2 million in Other Procurement, Navy (OPN) for submarine support equipment, but included no funding for high performance metal brushes for shipboard motors and generators. Metal fiber brushes have demonstrated the capability to significantly enhance performance and reduce maintenance costs for motors and generators. The committee recommends an increase of $2.0 million in OPN for completion of shore-based testing, development of ship alteration, and procurement of high performance metal fiber brushes.

Ship support items under $5.0 million

The budget request included $172.8 million in Other Procurement, Navy (OPN) for ship support equipment items under $5.0 million, but included no funding for the advanced control monitoring system, CVN propeller replacement program, or LSD-41/49 class canned lube oil pumps.

The advance control monitoring system will update legacy, analog ship control systems with digital applications and sensors for improved ship control and ship system performance monitoring. The committee recommends an increase of $4.0 million in OPN for the advanced control monitoring system.

The Navy has designed a generation III propeller for new and in-service aircraft carriers to meet the operational endurance and readiness requirements of today's fleet. Replacing eroded propellers with generation III propellers provides improved life cycle performance and significant cost savings by extending propeller service life to align with aircraft carrier drydock schedules. The committee recommends an increase of $3.0 million for continued procurement and installation of generation III propellers.

The current mechanical shaft seal pumps on LSD-41/49 class amphibious ships experience high failure rates and increasing maintenance costs. The committee is aware that the Navy could realize a return on investment within 3 years through the installation of canned lube oil pumps on LSD-41/49 class ships. The committee also recommends an increase of $2.0 million in OPN for the procurement and installation of canned lube oil pumps to replace mechanical shaft seal pumps.

The committee recommends an increase of $9.0 million in OPN for ship support equipment items under $5.0 million, for a total authorization of $181.8 million.

Electronics equipment items under $5.0 million

The budget request included $22.5 million in Other Procurement, Navy (OPN) for communications and electronics equipment items under $5.0 million, but included no funding for the Naval Expedition Combatant Command (NECC) thermal imaging system capability. The use of an electro-optical/infrared system on combatant craft reduces risk to combat personnel and provides a surveillance capability to special operators at night and in conditions of obscured or reduced visibility. The committee recommends an increase of $4.2 million in OPN for communications and electronics equipment items under $5.0 million to outfit NECC riverine squadrons with thermal imaging systems.

Sonobuoys

The budget request included $66.9 million in Other Procurement, Navy (OPN) for sonobuoy procurement. The Navy's current sonobuoy inventory and planned procurement for fiscal year 2007 fall short of the Navy's Non-Nuclear Ordnance Requirement (NNOR), which was established to support the National Military Strategy plus annual training requirements. Additional funding for multi-static search and localization sonobuoys is required to meet warfighting requirements. The committee recommends an increase of $8.0 million in OPN for sonobuoy procurement.

Joint service and explosive ordnance disposal improvised explosive device countermeasures

The budget request included $21.5 in Other Procurement, Navy (OPN), for explosive ordnance disposal (EOD) equipment and $24.5 million in PE 63654N for joint service and explosive ordnance systems development. The Navy has an immediate need to procure EOD electronic countermeasures (ECM) that are used to protect Navy EOD technicians from radio-controlled improvised explosive devices (RCIED) initiation and detonation. The Navy also has a requirement for research and development of a common next-generation, counter-RCIED system for joint force protection. Additional funding for joint service and EOD improvised explosive device countermeasures has been included on the Chief of Naval Operations' fiscal year 2007 unfunded priorities list. The committee recommends an increase of $7.7 million in OPN for EOD ECM, for a total authorization of $29.2 million and an increase of $9.1 million in PE 63654N for the development of joint service counter-RCIED, for a total authorization of $33.6 million.

NULKA anti-ship missile decoy

The budget request included $54.1 million in Other Procurement, Navy (OPN) for the procurement of eight NULKA anti-ship missile decoy systems and 79 NULKA decoys. The NULKA decoy is a quick reaction offboard electronic countermeasure to defeat advanced radar homing anti-ship missiles.

The committee is aware that the programmed procurement rate for NULKA decoys will not meet the Navy's inventory goal of filling 50 percent of available launcher tubes by fiscal year 2008. The committee further understands that the economic order quantity to meet the most efficient NULKA production is 96 decoys, and that increasing production to the most economic rate will save approximately $20,000 per decoy. The committee recommends an increase of $6.0 million in OPN for the procurement of 17 additional NULKA decoys.

Command support equipment

The budget request included $58.6 million in Other Procurement, Navy (OPN) for command support equipment, but included no funding for the Multi-Climate Protection System (MCPS), or for the Man Overboard Indicator (MOBI) System.

The MCPS is a modular ensemble that provides total performance by layering thermal protection and shell garments. The committee is aware that the MCPS was developed to support the Commander Naval Air System requirement for improved protective clothing for aircrew personnel, and that the Navy has outfitted approximately 25 percent of total aircrew personnel with this improved clothing system. The committee recommends an increase of $3.2 million in OPN to complete initial MCPS outfitting.

The MOBI system provides devices, which are worn by sailors aboard ship, to allow rescue forces to respond quickly in the event a sailor falls overboard. The committee is aware that the Naval Safety Center has recommended to the Naval Sea Systems Command that MOBI systems should be deployed throughout the fleet. The committee understands that 20 surface ships remain to be outfitted with the MOBI system, and that shipboard allowances limit the provision of personal transmitters to approximately one-third of crew members. The committee believes the MOBI system is an important system for shipboard safety. The committee recommends an increase of $4.4 million in OPN to complete surface ship MOBI system installations and increase personal transmitter shipboard allowances.

The committee recommends an increase of $7.6 million in OPN for command support equipment, for a total authorization of $66.2 million.

Combat Casualty Care Equipment Upgrade Program

The budget request included $5.6 million in Other Procurement, Navy (OPN) for Medical Support Equipment, but included no funding for the Combat Casualty Care Upgrade Equipment Program. This program provides improved emergency medical equipment for use by the Naval Expeditionary Combat Command to more quickly stabilize and evacuate casualties, leading to greater survival rates and improved recovery times. The upgrade program complies with Navy authorized medical allowance list (AMAL) to provide lightweight NATO-standardized litters and litter load carriage tools, lightweight combat medic bags, and onboard life-saving kits for tactical vehicles. The committee recommends an increase of $4.1 million in OPN for the Combat Casualty Care Equipment Upgrade Program.

Lightweight 155-millimeter towed howitzer

The budget request included $94.4 million in Procurement, Marine Corps, for the Lightweight 155-millimeter towed howitzer (LW-155 howitzer). The committee understands that a funding reduction in fiscal year 2006 reduced the number of Marine Corps' LW-155 howitzers below the Marine Corps' Acquisition Objective of 356 howitzers. Additional funding for the procurement of LW-155 howitzers has been included on the Commandant of the Marine Corps' fiscal year 2007 unfunded priority list. The committee recommends an increase of $12.4 million in Procurement, Marine Corps for six additional LW-155 howitzers, for a total authorization of $106.8 million.

Modification kits

The budget request included no funding in Procurement, Marine Corps, for modification kits for the M2HB .50 Caliber Machinegun. These kits would allow for the gun to have a quick change-barrel capability without conducting headspace and timing adjustments. The committee recommends an increase of $5.0 million in Procurement, Marine Corps for M2HB .50 Caliber Machinegun modification kits, for a total authorization of $5.0 million.

Laser integrated target engagement system

The budget request included $19.7 million in Procurement, Marine Corps for command post systems, but no funding for the Laser Integrated Target Engagement System (LITES). LITES is a laser based target location, tracking, identification and designation system. The laser designator has potential to significantly reduce the battery weight and deliver twice the designations at twice the range compared to the current generation of laser designators. The committee recommends an increase of $9.3 million in Procurement, Marine Corps for the LITES, for a total authorization of $29.0 million.

SUBTITLE D--AIR FORCE PROGRAMS

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Procurement of Joint Primary Aircraft Training System aircraft after fiscal year 2006 (sec. 141)

The committee recommends a provision that would require any Joint Primary Aircraft Training System (JPATS) aircraft procured after fiscal year 2006 to be procured through a contract under part 15 of the Federal Acquisition Regulation (FAR), relating to items by negotiated contract, rather than through a contract under part 12 of the FAR, relating to acquisition of commercial items.

The committee believes that the original decision to procure JPATS as a commercial item unnecessarily limited cost oversight by the government by denying the government access to certified cost or pricing data from the manufacturer. The committee believes that an agreement to change the terms and conditions of the existing JPATS contract from a commercial item contract to a standard defense contract is necessary to provide the government the oversight it needs to procure aircraft at a fair price. The Department of Defense Inspector General report, number D-2006-075, entitled `Acquisition of the Joint Primary Aircraft Training System,' dated April 12, 2006, recommended that the Assistant Secretary of the Air Force for Acquisition discontinue the commercial item procurement strategy for the JPATS program and replace it with a strategy that would require the contractor to provide certified cost or pricing data and visibility into contractor cost and help the Government ensure prices negotiated and eventually paid are reasonable.

The committee notes that the Air Force has announced its intent to renegotiate this contract to a FAR part 15 contract. This provision is intended to support that decision.

Prohibition on retirement of C-130E/H tactical airlift aircraft (sec. 142)

The committee recommends a provision that would prohibit the Secretary of the Air Force from retiring any C-130E/H tactical airlift aircraft in fiscal year 2007.

The committee believes it would be premature to retire any C-130 aircraft until an Air Force Fleet Viability Board has conducted an assessment of the C-130E/H fleet of aircraft and the results of the Intra-Theater Lift Capability Study (ITLCS), Phases 1 and 2, identify the right mix and number of intra-theater airlift assets, and that the results of the assessment and the ITLCS study have been provided to the congressional defense committees.

Limitation on retirement of KC-135E aircraft (sec. 143)

The committee recommends a provision that would authorize the Secretary of the Air Force to retire up to and including 29 KC-135E aircraft of the Air Force that do not have the Expanded Interim Repair and are currently removed from the flying schedule in fiscal year 2007. It is the intent of the committee to allow the Air Force to retire KC-135E aircraft in a manner consistent with the recommendations of the Air Force Fleet Viability Board, KC-135 Assessment Report, dated September 2005, including, but not limited to, the service completing a business case analysis for this mission area.

Limitation on retirement of B-52H bomber aircraft (sec. 144)

The committee recommends a provision that would authorize the Secretary of the Air Force to retire up to and including 18 B-52H aircraft of the Air Force. The committee expects the remaining B-52H aircraft inventory to be maintained in a common aircraft configuration that includes the Electronic Countermeasure Improvement, the Avionics Mid-life Improvement, and the Combat Network Communication Technology modification efforts. The committee expects no further reduction in the B-52H total aircraft inventory, including the current inventory levels for combat coded Primary Mission Aircraft Inventory and Primary Training Aircraft Inventory. The committee is concerned that any further reduction in the B-52H total aircraft inventory will create unacceptable risk to our national security and may prevent our ability to strike the required conventional target set during times of war.

Retirement of B-52H bomber aircraft (sec. 145)

The committee recommends a provision that would prohibit the use of any funds available to the Department of Defense from being obligated or expended for retiring or dismantling any of the 93 B-52H bomber aircraft in service in the Air Force as of June 1, 2006, until 30 days after the Secretary of the Air Force submits to the Committees on Armed Services of the Senate and the House of Representatives a report on the bomber force structure. The committee directs that the report shall be conducted by the Institute for Defense Analyses and provided to the Secretary of the Air Force for transmittal to Congress. The committee is troubled that the Air Force would reduce the B-52 bomber fleet without a comprehensive analysis of the bomber force structure similar to the last comprehensive long range bomber study, which was conducted in 1999.

Prohibition on incremental funding and multiyear procurement of F-22A aircraft (sec. 146)

The committee recommends a provision that would prohibit the Secretary of the Air Force from using incremental funding for the procurement of F-22A aircraft. In the past, the Congress has approved of incremental funding of certain space programs and a select number of shipbuilding programs. Notwithstanding assertions to the contrary, authorizing incremental funding for the F-22A would set a precedent for funding aircraft. The committee sees no justification for setting such a precedent in the case of the F-22A, where the Department of Defense has proposed incremental funding merely as a way of alleviating cash flow pressures on the overall Department.

Additionally, the provision would prohibit the Secretary of the Air Force from entering into a multiyear procurement of the F-22A. Subsections (a)(1) through (6) of section 2306b of title 10, United States Code establish the conditions for entering into a multiyear procurement contract. The statute requires that the use of such a contract will result in substantial savings of the total anticipated costs of carrying out the program through annual contracts. Although it would seem possible to achieve savings from implementing a multiyear procurement for the F-22A, the Air Force has not yet completed a thorough analysis of multiyear savings. The statute also requires that the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are realistic. The fact that the Air Force had budgeted 24 F-22A aircraft in fiscal year 2006, but will only be able to buy 22 or 23 aircraft with available funds does not give confidence that anticipated costs are well understood. Although the Department of Defense and the Air Force have asked for the authority to pursue a multiyear procurement program, the Administration has not submitted any budget exhibits supporting a multiyear procurement strategy.

BUDGET ITEMS--AIR FORCE

JOINT STRIKE FIGHTER

The budget request included $869.7 million in Aircraft Procurement, Air Force (APAF) to purchase five Air Force aircraft in fiscal year 2007, $145.3 million in APAF to purchase long lead time materials for eight Air Force aircraft to be purchased in fiscal year 2008, and $245.0 million in Aircraft Procurement, Navy (APN) to purchase long lead time materials for eight Marine Corps aircraft to be purchased in fiscal year 2008.

The purpose of the Joint Strike Fighter (JSF) program is to provide an affordable replacement strike fighter aircraft for major portions of the fleets of the Air Force, the Navy, and the Marine Corps. The Air Force variant will be a conventional takeoff and landing aircraft (CTOL), the Navy variant will be aircraft carrier capable (CV), and the Marine Corps variant will be capable of short takeoff and vertical landing (STOVL). Central to the whole JSF program is achieving an affordable option for these modernization efforts. Commonality within this family of aircraft is crucial in keeping the overall tactical aviation modernization program affordable.

The committee strongly supports, and is committed to achieving, the objective of developing and deploying a technically superior and affordable fleet of Joint Strike Fighters that support the warfighter in performing a wide variety of missions, as well as meeting the United States Government's stated commitments to our international partners and allies.

The committee, however, is concerned that excessive concurrency between the development and procurement programs could hamper efforts to realize this objective in an effective and efficient manner. Recent testimony by a representative of the Government Accountability Office (GAO) indicated that,

The JSF program expects to begin low-rate initial procurement in 2007 with less than 1 percent of the flight test program completed and no production representative prototypes built for the three JSF variants. Technologies and features critical to JSF's operational success, such as a low observable and highly common airframe, advanced mission systems, and maintenance prognostics systems, will not have been demonstrated in a flight test environment when production begins. Other key demonstrations that will have not been either started or only in the initial stages before production begins include: (1) testing with fully integrated aircraft-mission systems and full software; (2) structural and fatigue testing of the airframe; and (3) shipboard testing of Navy and Marine Corps aircraft.

The committee has also learned that first flight of the first aircraft, a CTOL variant, has slipped several months, and building of the research and development aircraft is running three to five months behind schedule.

The overlap in testing and production is the result of a business case and acquisition strategy that has proven to be risky in past programs like F-22A, Comanche, and B-2A, which far exceeded the cost and delivery goals set at the start of their development programs. JSF has already increased its cost estimate and delayed deliveries through a lengthy replanning effort that added over $7.0 billion and 18 months to the development program. The committee believes that an evolutionary acquisition strategy to limit requirements for the aircraft's first increment of capabilities that can be achieved with proven technologies and available resources could significantly reduce the JSF program's cost and schedule risks. Such a strategy would allow the program to begin testing and low-rate production sooner and, ultimately, to deliver a useful product in sufficient quantities to the warfighter sooner. The Department of Defense's use of an evolutionary, knowledge-based approach is not unprecedented. The F-16 program successfully evolved capabilities over the span of 30 years, with an initial F-16 capability delivered to the warfighter about four years after development started.

Although the Department has scheduled the production of JSF aircraft to begin replacing legacy aircraft, the committee believes that the development and fielding of JSF variants should be event-driven and that more of the technologies should be matured and risk reduced to the point that the government and the contractor team can sign a fixed-price contract for each production lot of aircraft.

Therefore, the committee recommends a one-year delay in production and a reduction of $955.0 million from APAF for JSF (consisting of $869.7 million for JSF and $85.3 million from JSF advance procurement), and $245.0 million in APN.

F-22A PROCUREMENT

The budget request included $1,981.3 million in Aircraft Procurement, Air Force (APAF) as part of an incremental funding strategy that would lead to a production profile of 20 aircraft per year for a three-year multiyear procurement of 60 aircraft, beginning in fiscal year 2008. No complete F-22A aircraft were to be procured in fiscal year 2007. The budget request also included $200.0 million in F-22A advance procurement for economic order quantity (EOQ) items required for the F-22A multiyear procurement program.

The committee does not agree with the Department of Defense acquisition strategy to incrementally fund the F-22A. The committee sees no justification for setting a precedent for funding aircraft, as in the case of the F-22A, where the Department of Defense has proposed incremental funding merely as a way of alleviating cash flow pressures on the overall Department.

Additionally, the committee sees no justification for entering into a multiyear procurement of the aircraft. Subsections (a)(1) through (6) of section 2306b of title 10, United States Code establish the conditions for entering into a multiyear procurement contract. One of these conditions is that such a contract will result in substantial savings as compared to the total anticipated costs of carrying out the program through annual contracts. The committee believes that substantial savings are not possible under the proposed acquisition strategy. Although the Department of Defense and the Air Force have asked for the authority to pursue a multiyear procurement program, the Administration has not submitted any budget exhibits supporting a multiyear procurement strategy. Without a multiyear procurement program, the $200.0 million in EOQ funds are in excess and should be applied to the procurement of F-22A aircraft in fiscal year 2007.

Therefore, the committee recommends an increase of $1,400.0 million in APAF for a total procurement of $3,381.3 million. The committee authorizes the Air Force to procure up to and including 20 F-22A aircraft in fiscal year 2007.

C-17A PROCUREMENT

The budget request included $2,636.2 million in Aircraft Procurement, Air Force (APAF), to complete the buy of 180 C-17A aircraft, including $433.2 million for line closure expenses. In addition, the fiscal year 2006 budget, as enacted, is $224.5 million for buying additional aircraft or for line closure expenses. Therefore, with the Air Force planned closure of the production line after the delivery of 180 aircraft, there would be available $657.7 million for line closure expenses.

The committee is concerned that premature closure of the C-17A production line would leave the Department of Defense with inadequate lift capabilities. While the Mobility Capabilities Study (MCS) identified that a fleet of 180 C-17As was adequate, that recommendation was based on many assumptions, some of which, only months after its completion, no longer hold true. There is a clear need for additional C-17As in order to meet inter- and intra-theater lift requirements.

In addition, the study assumed a standard usage rate, one significantly lower than what the Air Force has experienced over the past several years. In fact, the service is flying its transports in excess of 159 percent of planned usage rates, which is leading to premature aging of the fleet. Some of the older transports now fly with restrictions due to sustained high usage. For this reason, the committee believes that higher usage rates necessitate the production of additional aircraft to ensure the long-term adequacy of the fleet.

In the Senate report accompanying S. 1042 (S. Rept. 109-69) of the National Defense Authorization Act for Fiscal Year 2006, the committee requested a further determination by the Secretary of Defense on the adequacy of airlift capabilities for several reasons, including increased humanitarian usage, the return of 70,000 personnel to the United States due to the Base Relocation and Alignment Commission results, homeland security requirements, Special Operations Command missions, requirements associated with the Army's Strategic Brigade Airdrop goal, and lift requirements for the Army's Stryker Brigades. The committee has yet to receive the Secretary's report. However, it would be difficult to conclude that these changes have not led to growth in our lift requirements.

In addition, the committee is further concerned that C-17A production is scheduled to cease well before the results of the C-5 modernization demonstration program in December 2008 are available. As a recent Department of Commerce analysis points out, the cost to restart production of the C-17A would exceed $5.0 billion and take 4 years before additional transports would become available. This conclusion is fully consistent with attempts in the early 1980s to restart the C-5 program, which was difficult, costly, and took years to restart. Additional funding for C-17A procurement has been included on the Air Force Chief of Staff's unfunded priorities list.

For these reasons, the committee recommends redirecting the $657.7 million planned for line closure to procure additional C-17A aircraft. The committee recommends $257.7 million in advance procurement (using the $224.5 million of fiscal year 2006 advance procurement with an additional $33.2 million transferred from the C-17A procurement line to the C-17A advance procurement line in fiscal year 2007), and applying the remaining $400.0 million to buy two additional C-17As.

KC-135 TANKER REPLACEMENT

The budget request included $36.1 million in Aircraft Procurement, Air Force (APAF) to purchase long, lead time materials to support the first aircraft delivery of a replacement tanker for the KC-135 aircraft in fiscal year 2010, and $203.9 million in PE 41221F for non-recurring engineering, test development, and program office expenses. The KC-135 tanker replacement program had been under a Department of Defense-directed pause which has resulted in a program schedule slip that will cause the contract award for tanker replacement to occur in fiscal year 2008.

The committee recommends a decrease of $36.1 million in APAF, and a decrease of $199.0 million in PE 41221F for the KC-135 tanker replacement program to reflect the schedule slip.

A/OA-10 modifications

The budget request included $107.5 million in Aircraft Procurement, Air Force (APAF) for modifications to the A/OA-10 aircraft. The modifications for the A/OA-10 include, but are not limited to, a communications and datalink upgrade, precision engagement upgrades, and a missile warning capability. A recent urgent needs request was established for an A/OA-10 robust, frequency-selectable, line-of-sight and beyond line-of-sight secure airborne communications and datalink capability that can be provided by the ARC-210 radio. The net effect of this improvement will be highly reliable, responsive air support of joint, coalition, and multi-national ground forces, and lower maintenance provided by materiel improvement. The precision engagement program upgrades include a digital stores management system, MIL-STD-1760 munitions bus, SNIPER/Litening targeting pod integration, improved hands-on-throttle-and-stick (HOTAS) control, two new multifunctional color cockpit displays, an improved head-up display, and digital datalink. The precision engagement upgrades will permit the A/OA-10 to employ GPS-guided munitions such as the Joint Direct Attack Munition and the Wind Corrected Munitions Dispenser. The A/OA-10 aircraft also requires an extended duration, covert infrared countermeasures capability to protect the aircraft from infrared surface-to-air missile threats that abound in its typical operating envelope for ground attack. Accelerated procurement of A/OA-10 modifications is included as the number three priority on the Chief of Staff of the Air Force's unfunded priorities list.

The committee recommends an increase of $83.4 million in APAF to accelerate the A/OA-10 modification program.

C-5 aircraft avionics modernization program

The budget request included $223.1 million in Aircraft Procurement, Air Force (APAF) for modifications to the C-5 aircraft, including $50.4 million to continue the C-5 avionics modernization program (AMP). AMP upgrades the C-5 cockpit by replacing unreliable cockpit avionics, installs communication, navigation, surveillance/air traffic management equipment capabilities that will improve air traffic management by taking advantage of optimum air routes. AMP also installs navigation safety equipment such as the traffic alert and collision avoidance system and the terrain awareness and warning system. To accelerate this program, the committee recommends an increase of $32.0 million in APAF for C-5 AMP.

Bomb insensitive munitions upgrade

The budget request included $41.9 million in Procurement of Ammunition, Air Force (PAAF), for Mk 84 bombs, but included no funding for facilitation of the insensitive munitions upgrade at the McAlester Army Ammunition Plant. The committee recommends an increase of $4.0 million in PAAF for facilitation of the insensitive munitions upgrade at the McAlester Army Ammunition Plant for the Mk 84 bomb production line.

Propulsion replacement program

The budget request included $294.6 million in Missile Procurement Air Force (MPAF), for the Minuteman III propulsion replacement program. This program extends the life, maintains the performance, and improves reliability of the Minuteman III Intercontinental Ballistic Missile by remanufacturing all three solid rocket motor stages. Refurbishment of the motors is necessary to sustain the Minuteman III force through 2020.

The committee recommends an increase of $20.0 million in MPAF, line 11, for the propulsion replacement program to offset increased costs of ammonium perchlorate and attrition hardware.

Expanded intelligence support for reach-back operations

The demand for intelligence exploitation from Air Force high mission aircraft, such as Predator, Global Hawk, and U-2, is increasing. Advances in technology allow for this imagery and signals intelligence exploitation to be conducted by Air Force intelligence organizations at home stationed in the United States rather than being forward deployed. Air National Guard (ANG) squadrons have successfully assumed portions of this mission set.

The committee recommends that this capability be expanded in the ANG. The committee also recommends an increase of $7.5 million in Other Procurement, Air Force, Intelligence Communications, to provide necessary communications equipment and unique intelligence workstations to enhance the mission capabilities of ANG intelligence squadrons and to expand the intelligence reach-back capabilities of the Department of Defense.

Self-deploying infrared streamer

The budget request included no funding in Other Procurement, Air Force (OPAF) for personal safety and rescue equipment items less than $4.0 million. The self-deploying infrared streamer (SDIRS) system aids in the rescue of downed aircrew at sea. The SDIRS system is attached to an ejection seat and automatically deploys and activates upon submergence in the water, making the wearer highly visible to search and rescue teams using the naked eye during daylight and night vision equipment during hours of darkness. The SDIRS installation requires only minimal modification to the existing system without affecting other components of the pilot's survival kit.

The committee recommends an increase of $4.0 million in OPAF for the procurement of the self-deploying infrared streamer.

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BUDGET ITEMS--DEFENSE-WIDE

Army high performance computing research center

The budget request included $84.9 million in Procurement, Defense-wide for major equipment, including $51.2 million for the High Performance Computing (HPC) Modernization Program (HPCMP). Department of Defense (DOD) supercomputing requirements for support of the research, development, test and evaluation community are collected and validated annually. Current projections show that the deployed capability in fiscal year 2007 will meet less than half of the validated requirement. The addition of supercomputers at the Army HPC research center will help the Department meet a high percentage of the requirement. The committee recommends an increase of $22.3 million in Procurement, Defense-wide, for a total authorization of $73.5 million for the Army HPC research center.

Mini gun

The budget request included $86.8 million in Procurement, Defense-wide (PDW), for Special Operations Forces (SOF), Rotary Wing Upgrades and Sustainment, but included no funding for the procurement of the M134 mini gun.

The M134 mini gun is a six barrel Gatling gun that has proven itself as a workhorse for the 160th Special Operations Aviation Regiment (160th SOAR) due to its long service life and reliable rate of fire. The M134 mini gun is one of the highest priorities of the Commander, U.S. Special Operations Command, for additional funding.

The committee recommends an increase of $13.9 million in PDW, for SOF Rotary Wing Upgrades and Sustainment, to support the procurement of 279 additional mini guns to ensure the 160th SOAR has a common weapon system capable of operating on direct-current power, while also offering a weight savings and improved reliability.

Time delayed firing device/sympathetic detonators

The budget request included $13.6 million in Procurement, Defense-wide (PDW), for Special Operations Forces (SOF), Ordnance Acquisition, including $2.7 million for time delayed firing device/sympathetic detonators (TDFD/SYDET), but included insufficient funding to fully replenish the inventory or provide sufficient munitions to train new operators as directed by the 2006 Quadrennial Defense Review Report.

TDFD/SYDET is a time delayed detonating device that greatly enhances the capabilities and efficiency of SOF operators conducting offensive military operations. Sufficient supplies are required to ensure operators have the best possible detonators for actual missions and that the detonator is available to instructors training new SOF operators. TDFD/SYDET is one of the highest priorities of the Commander, U.S. Special Operations Command, for additional funding.

The committee recommends an increase of $7.5 million in PDW, for SOF Ordnance Acquisition, to procure an additional 5,500 TDFD/SYDET units for SOF operators and trainers.

Persistent Predator operations and intelligence

The budget request included $32.7 million for Procurement, Defense-wide (PDW), for Special Operations Forces (SOF), Intelligence Systems, but included no funding for Persistent Predator operations and intelligence.

The U.S. Special Operations Command (USSOCOM) requires the capability to find, fix, and finish time-sensitive, high-value targets. These targets can often only be developed with patient, persistent collection, and require rapid, decisive action during the brief periods in which they present themselves. Persistent Predator operations and intelligence is the highest priority for the Commander, USSOCOM, for additional funding.

The committee recommends an increase of $13.4 million in PDW, for SOF Intelligence Systems, to procure a mobile Predator operations center and distributed common ground system to conduct dynamic retasking of Predator assets to support SOF ground forces.

Advanced lightweight grenade launcher

The budget request included no funding in Procurement, Defense-wide (PDW), for Special Operations Forces (SOF), Small Arms and Weapons, for continued procurement of the Advanced Lightweight Grenade Launcher (ALGL).

The ALGL system provides a much improved capability over the Mark 19 grenade launcher it replaced. The ALGL is a lightweight 40MM grenade launching system with day and night fire control and air bursting 40MM ammunition. This capability provides SOF elements the ability to address targets in defilade position, and enables first burst hit capability on point targets up to 1,500 meters. ALGL is one of the highest priorities for the Commander, U.S. Special Operations Command, for additional funding.

The committee recommends an increase of $12.9 million in PDW, for SOF Small Arms and Weapons, to procure an additional 86 ALGL systems with fire control capability.

Special Operations Forces laser acquisition marker

The budget request included $105.8 million for Procurement, Defense-wide, for Special Operations Forces (SOF), Small Arms Weapons, and $1.4 million for the night vision sight subcomponent of the Special Operations Forces Laser Acquisition Marker (SOFLAM).

The use of an invisible, coded laser that can only be detected by a targeted missile provides SOF elements with a stand off capability to engage targets, and ensures friendly delivery aircraft spend minimal time in enemy airspace. SOFLAM is one of the highest priorities for the Commander, U.S. Special Operations Command, for additional funding.

The committee recommends an increase of $5.3 million in PDW, for Small Arms Weapons, to procure twelve SOFLAM for tactical air controllers to mark and laze targets for the delivery of laser guided munitions.

Special Operations Command craft modifications

The budget request included $20.2 million in Procurement, Defense-wide (PDW), for Special Operations Forces (SOF), Combatant Craft Systems, including $2.5 million for craft modifications, but included insufficient funding to fully upgrade the high speed assault craft inventory.

The committee notes that the craft modifications will accelerate technology insertion, including the high performance diesel engine propulsion system, the integrated onboard ground operating system, and the integrated bridge system. The craft modifications are one of the highest priorities of the Commander, U.S. Special Operations Command, for additional funding.

The committee recommends an increase of $8.2 million in PDW, for SOF Combatant Craft Systems, to fully upgrade the high speed assault craft currently used by Naval Special Warfare Command in the execution of their mission to conduct interdiction at sea, as well as insertion and extraction of combat force to or from shore based targets.

Joint threat warning system

The budget request included $4.5 million in Procurement, Defense-wide (PDW), for Special Operations Forces (SOF), Intelligence Systems Development, for continued procurement of the Joint Threat Warning System (JTWS), but the amount requested will only equip a small portion of special operations forces with this much-improved threat warning capability for ground, air, and maritime forces.

JTWS is a modular, lightweight, ground signals intelligence system that can be mounted on a variety of SOF delivery platforms to provide threat warning, situational awareness, and enhanced force protection for SOF elements. JTWS is an evolutionary acquisition program that builds upon previous efforts to separately acquire similar systems for air, ground, and maritime applications. Accelerating the procurement of this capability to provide a network-centric family of systems is one of the highest priorities of the Commander, U.S. Special Operations Command, for additional funding.

The committee recommends am increase of $5.5 million in PDW, for SOF Intelligence Systems Development, to procure additional JTWS variants that will allow operators increased situational awareness.

Automatic Chemical Agent Detector and Alarm

The budget request included $236.1 million in Procurement, Defense-wide (PDW), for contamination avoidance equipment to support the procurement of chemical and biological detection, warning and reporting, and reconnaissance systems, such as the Automatic Chemical Agent Detector and Alarm (ACADA). The committee notes that a number of Army National Guard units are deployed in support of military operations. These units must have the best possible defense against chemical threats. The committee recommends an increase of $20.0 million in PDW to meet procurement shortfalls in fielding ACADA systems.

Improved chemical agent monitor

The budget request included $236.1 million in Procurement, Defense-wide (PDW), for contamination avoidance equipment, but included no funding for the Improved Chemical Agent Monitor (ICAM). ICAM is a hand-held, soldier operated, post-attack device that provides a means of quickly detecting the presence of nerve and blister agent contamination on personnel and equipment.

The committee notes that Army National Guard units do not all possess the capability to rapidly and effectively detect the presence of chemical agents. These units must have the best available equipment to detect the presence of chemical threats.

The committee recommends an increase of $10.0 million in PDW, for ICAM, to increase the Army National Guard's contamination avoidance capabilities.

ITEMS OF SPECIAL INTEREST

Cost control for certain helicopter acquisition programs

The Department of Defense, including the Army, Navy, Air Force, and Marine Corps are all buying helicopters for filling various missions. Two of these programs have generated concern because of recent developments. The Marine Corps has been developing upgrades and replacements for its existing fleet of attack (AH-1) and utility (UH-1) helicopters. These programs, which are being conducted by the same manufacturer, have experienced delayed deliveries and increasing costs. These problems appear, at least in part, to have been caused by deficient cost control and cost accounting procedures by which the contractor manages the programs and through which Department of Defense acquisition officials can manage the government's equities in the programs.

This raises concerns with the committee, since these same procedures have been used on other existing programs and could be used on future programs as well. Since the Marine Corps' MV-22, Special Operations Command's CV-22, the Air Force's VH-71, and the Army's Armed Reconnaissance Helicopter (ARH) programs will all be acquired in whole or in part from the same contractor, the committee believes that Department-wide attention should be focused on the corrective actions that are being proposed for restructuring the AH-1 and UH-1 programs.

Therefore, the committee strongly urges the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD (AT&L)) to conduct a thorough review of the cost control and cost accounting procedures for helicopter acquisition programs of the various helicopter prime contractors, not just the contractor involved in the AH-1 and UH-1 programs. We need to be sure that we are getting fair value for the billions of dollars that the taxpayer will be investing in the various helicopter acquisition programs in the current plan.

The committee will reserve judgment on the plan to restructure the UH-1 and AH-1 programs until the Department completes its review.

Deployable/mobile command and control programs

The committee notes that there are many efforts underway in the Department of Defense and military services to develop and field battle management command and control systems. While the committee supports ongoing efforts to improve command and control (C2) capabilities, we are nonetheless concerned that many of these systems are being developed as service-centric solutions rather than as joint solutions. As a result, there is likely to be unnecessary duplication of effort and cost inefficiencies and, more importantly, there is the potential that systems will lack the necessary interoperability to operate effectively in a joint military operation.

The committee also notes that Joint Forces Command (JFCOM), in coordination with the Department of the Navy, is developing and fielding the first increment of the Deployable Joint Command and Control (DJC2) system with some success. However, with efforts underway to pursue further increments of DJC2 capability, it has become apparent that a number of service-specific solutions to the problem of deployable C2 have recently begun that may duplicate DJC2. In addition, the services have several efforts underway to develop various mobile C2 systems. These systems are intended to provide commanders with battle management and situational awareness capabilities while on the move. For example, the Army is developing the Mounted Battle Command On-The-Move (MBCOTM) system and the Marine Corps is developing the Command and Control On-The-Move Network Digital Over-the-Horizon Relay (CONDOR) system. Additionally, JFCOM is designing a Command and Control on the Move (C2OTM) system under limited acquisition authority. While each service will argue that they need a service-unique deployable C2 solution to meet service-specific requirements, a common solution set of equipment that could meet the needs of multiple services may be preferable, especially given the funding pressures the Department is experiencing. The committee believes that there are efficiencies to be gained from merging the services' deployable and mobile C2 initiatives.

As a first step in identifying the extent to which there is a problem with the military services continuing to pursue service-specific C2 solutions at the expense of joint solutions, the committee directs the Comptroller General to provide a report to the congressional defense committees, no later than March 15, 2007, reviewing current and planned programs within the Department to develop deployable and mobile C2 systems. The report will include an assessment of the requirements, costs, and schedules of these programs and whether joint development approaches are warranted.

F-18 Hornet to Joint Strike Fighter transition

The committee is concerned that the Navy will confront a sizeable gap in aircraft inventory as older F/A-18A-D Hornets retire before the aircraft carrier variant of the Joint Strike Fighter (JSF) is available. F/A-18A-D aircraft were originally designed for a service life of 6,000 flight hours, and after an initial engineering study, that limit was raised to 8,000 flight hours. It would take additional service life extensions to reach 12,000 flight hours to ensure a smooth transition to JSF with no inventory shortfall.

The magnitude of the problem, and the procurement cost to avoid a shortfall in the carrier air wing force structure, is entirely dependent on when the Navy determines that its F/A-18A/Cs are at the end of their service life. An ongoing Service Life Assessment Program (SLAP) II study, to be completed in December 2007, will determine the maximum service life of the aircraft. Early projections from the SLAP II study indicate that aircraft service life may be approved beyond 8,000 flight hours. However, the Navy has acknowledged that, even if 10,000 flight hours were achievable, the inventory shortfall would be 50 aircraft. If any of the assumptions used in the Navy's analysis change or prove to be overly optimistic, the inventory gap will grow dramatically.

The committee understands that an acquisition decision is not required this fiscal year. However, small steps taken now could prevent the requirement for major and expensive program changes in 2010. Accordingly, the committee recommends that the Navy consider buying additional F/A-18E/Fs to mitigate the known shortfall, while allowing the Navy to transition to the JSF as soon as feasible. In addition, the committee directs the Navy to report the preliminary findings of the SLAP II study to the congressional defense committees no later than June 15, 2007.

Fully funded bomber roadmap

The Secretary of the Air Force shall provide a bomber roadmap to the congressional defense committees within 120 days of enactment of this Act. The roadmap will outline a plan for long-range strike bombers with specific details of upgrade plans for legacy bombers and a schedule for development of the new long-range strike bomber. The roadmap shall include the amount of funding that would be needed to implement the roadmap through fiscal year 2020.

Littoral Combat Ship

The Littoral Combat Ship (LCS) is a small, fast Navy surface combatant with modular weapon systems, designed to fill critical capability gaps for warfighting in the littorals. The Navy plans to procure a total of 55 LCS vessels, plus approximately 90 mission modules for mine warfare, anti-submarine warfare, and anti-surface warfare capability. The Navy has emphasized the criticality of littoral capability, modularity, and low acquisition cost as the compelling attributes for procuring this new class of small combatants. The Navy's estimate for LCS procurement was $220.0 million, with average unit cost for mission modules estimated at $70.0 million. The Navy's acquisition strategy was to procure 4 flight 0 ships, pause procurement in fiscal year 2008 while evaluating system performance, and then proceed with introduction of a flight 1 design for follow-on ship competition.

The Navy awarded two LCS flight 0 prime contracts, with research and development (R&D) funding in fiscal years 2005 and 2006. Congress appropriated two additional flight 0 ships in Shipbuilding and Conversion, Navy (SCN) in fiscal year 2006, budgeted at the Navy's estimated $220.0 million unit cost. Additionally, in view of concerns with cost growth on shipbuilding programs, the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) established a $220.0 million cost cap for the fifth and sixth ships of the LCS program. That cost cap is subject to authorized adjustments for inflation, outfitting, statutory changes, and technology insertion approved by the Secretary of the Navy.

The fiscal year 2007 budget request included $521.0 million for the fifth and sixth ships of the LCS class, and identified that the Navy's $220.0 million estimate for LCS unit cost was exclusive of contract change orders, planning and engineering services, program management support, and other costs not included in the ship construction contract. In total, the Congressional Research Service estimates that these adjustments would increase the average unit procurement cost of follow-on LCS ships about 33 percent, to approximately $298.0 million. With lead ship construction less than 50 percent complete, it is premature to refine these estimates based on actual construction cost return data. The Navy has also advised that it has revised its acquisition strategy and intends to continue procurement of the two flight 0 versions at least through the planned procurement of the fifteenth LCS in fiscal year 2009.

The construction of lead LCS vessels at two shipyards inherently adds cost risk, which will persist until these ships near completion in 2007 and 2008. The emphasis on cost control would dictate that the Navy pursue competition, commonality, and the results of learning curves to the extent practical in the procurement of this 55 ship class.

The committee views LCS as an important component of the Navy's strategy for conducting the global war on terror, and has supported the Navy's approach to rapidly field this capability. The design and construction of LCS in parallel with development of the mission modules requires heightened management of program risk to ensure affordable, full mission capability of the LCS program. However, the committee is concerned that the affordability appeal of the LCS program is being overtaken by apparent cost growth, and that the rapid ramp up in LCS procurement will compound the issue. The stated emphasis on affordability is obscured by the absence of a clear acquisition strategy to guide strategic program decisions. Additionally, it is unclear that the Navy has assessed the added cost for training, maintenance, configuration management, planning and engineering, and supply support for the two flight 0 ship classes. Further, by virtue of budgeting the costs for procuring the flight 0 LCS vessels in three different appropriations, total costs for the program's start are difficult to discern.

In view of these concerns, the committee directs the Secretary of the Navy to submit a report on the LCS program, no later than December 1, 2006 to the congressional defense committees. The report shall outline the Navy's acquisition strategy for the program, including the competition plan, the flight strategy, and the cost containment strategy for the program; contain a clear representation of all R&D and procurement costs for the total program; and assess the added life cycle costs associated with operation and support for two dissimilar flight 0 LCS designs.

Maritime Prepositioning Force, Future

The Navy's long-range plan for future force structure includes $14.5 billion for the development and construction of Maritime Prepositioning Force (Future) (MPF(F)) ships and related enabling technologies in support of sea basing. The budget request included $127.7 million in PE 63236N and PE 48042N for the purpose of developing concepts of operation and enabling technologies for the Sea Base. The first MPF(F) ships are planned for procurement in fiscal year 2009, with the Sea Base initial operating capability in 2016.

The Senate report accompanying S. 1042 (S. Rept. 109-69) of the National Defense Authorization Act for Fiscal Year 2006 identified concerns regarding whether the future concept of sea basing is technically feasible and fiscally prudent. The committee understands that sea basing fundamentally comprises a range of capabilities stretching across prepositioning, sealift, expeditionary force, and aircraft carrier operations all of which are employed by the fleet today when called to put forces ashore. The future Sea Base envisioned by the Navy would include MPF(F) squadrons capable of supporting brigade-size assault forces, with automated warehousing and selective offload capability, heavy seas ship-to-ship cargo transfer capability, mobile landing platforms, and ship-to-shore connectors. Further, the MPF(F) squadron could sustain the force ashore for extended periods without reliance on access to other nations' ports or bases.

The large investment required by the MPF(F) sea basing capabilities requires careful assessment regarding the concept of operations for the MPF(F) squadrons. Specific access-denial scenarios, which would dictate employing the MPF(F) ships, need to be understood against the backdrop of the full spectrum of inter-service and inter-agency alternatives for establishing a point of departure for ground forces. To the extent that MPF(F) ships are maintained in a ready status, similar to their prepositioning counterparts, the timeline for deploying the MPF(F) ships and the crewing concept for their operations become important factors in scenario planning for the Sea Base. Similarly, an understanding of capstone requirements for probability of raid annihilation and other force defense requirements for the Sea Base is critical, since the MPF(F) ships will potentially embark a brigade-size force, yet they lack the self-defense features of expeditionary warships.

Technical challenges confronting the development of the critical enabling technologies for sea basing need to be assessed, and the risks need to be sufficiently understood to be able to warrant near-term decisions regarding further investment in MPF(F) ship procurement. The committee believes it is important to ensure that these technologies can reliably support the movement of supplies and equipment in heavy seas, at a rate that will sustain a ground force engaged in combat, before large investments are made in MPF(F) ships.

The Navy faces significant financial challenges as it proceeds to build the 313-ship fleet defined by the future force structure plan. In weighing the investment in MPF(F) capability, the committee needs to have clear insight to the full benefit the Navy intends to derive from this concept, an appreciation that the sea basing mission is not better achieved by other measures, and full confidence that the development efforts in question are achievable in the timeframe planned and budgeted. Accordingly, the committee directs the Secretary of the Navy to submit a report to the congressional defense committees with the fiscal year 2008 budget request, addressing: (1) the Sea Base concept of operations for the MPF(F) ships, including timelines that detail force deployment and underway operations in defense planning scenarios; (2) Sea Base capstone requirements that address defense of the MPF(F) ships against swarming boats, diesel submarine threats, or high density anti-ship cruise missile raids; (3) MPF(F) key performance parameters; (4) MPF(F) crewing concepts, and assessment of related cost and operational considerations; (5) refined ship cost estimates and total program costs, including development and procurement for connectors and other capabilities required by the Sea Base; (6) the management plan, including consideration for assignment as a Major Defense Acquisition Program, for overseeing end-to-end development and integration of this joint system-of-systems; and (7) a program roadmap that outlines the development, test, and integration plan for the enabling technologies with the MPF(F) platforms.

Ship systems commonality

Navy vessels require common capabilities such as communications, surveillance, self-defense, damage control, combat systems, weapon deployment, propulsion, computing capability, and electrical power generation and distribution. In some cases, ship programs have developed their own solutions for some of these common capabilities. This approach has resulted in a number of different systems performing similar functions. The concept of a family of ships, which applies investments made on one ship class to other ship classes, could avoid redundant research and development while reducing supply and training pipelines. The direct cost savings associated with this approach are readily apparent. The effect of the absence on competitive pressure on the incumbent vendor in terms of cost and technology innovations is less clear.

The modular and open architecture approach to designing and integrating subsystems, which can be assembled as required to meet the specific missions, could reduce design and integration costs for Navy ships. The Navy might be in a position to apply this concept to a number of currently planned ship classes. The committee believes that the Navy should explicitly consider whether having such an approach for the design, integration, installation, and life cycle support for common systems for future ships would provide better value for the government.

Therefore, the committee directs the Secretary of the Navy to submit a report to the congressional defense committees, with the fiscal year 2008 budget request, on the analysis of costs and benefits of implementing a plan to maximize commonality in the design, integration, and installation of systems into new ships and existing ships.

Submarine force structure

The Secretary of the Navy submitted a report to Congress on the long-range plan for construction of naval vessels with the fiscal year 2007 budget request. This plan reflects the determination by the Chief of Naval Operations (CNO) that the National Defense Strategy requires a fleet of 313 ships, including 48 attack submarines, to meet the threat in future years. In testimony before the Subcommittee on Seapower of the Committee on Armed Services, the Navy witnesses described the level of 48 attack submarines as the minimum level necessary to support both wartime and peacetime requirements.

The Navy also indicated that, with currently planned construction, attack submarine forces drop below 48 submarines for 15 years. The future-years defense program (FYDP) supports building only one attack submarine per year through fiscal year 2011, with sufficient advance procurement during the FYDP to support increasing the production rate to two boats per year in fiscal year 2012. The Navy's leadership has stated that they need to get the price of Virginia-class attack submarines to a level of $2.0 billion per boat before increasing the build rate. The committee completely agrees with the Navy's affordability focus, but simultaneously views the most important step to improve affordability is to increase the production rate of the Virginia-class to more than one boat per year.

The committee understands that the Navy is trying to modernize in a constrained fiscal environment. However, the committee does not understand the continuing delays in increasing the construction rate. By the Navy's own assessment: (1) submarines perform a uniquely Navy mission; (2) the minimum requirement is to have 48 attack submarines; (3) submarine force levels will fall below 48 during the next decade and remain there for 15 years; (4) the Navy needs to achieve cost reductions in attack submarine construction in order to increase production rates without impinging on other priority shipbuilding programs; and (5) there are potential technology insertion opportunities that might help reduce costs and permit the Navy to increase the production rate.

Having said that, the Navy's and industry's plan for achieving the $2.0 billion per boat cost goal requires greater definition. The Navy has referred to efforts to develop a number of improvements for the Virginia-class that target cost reductions. The committee is concerned, however, that without more specific plans with defined goals and benchmarks, the Navy will get to the end of the FYDP and not necessarily be any closer to achieving real cost reductions in this program. Therefore, the committee directs the Secretary of the Navy to submit with the fiscal year 2008 budget request a detailed plan for developing cost reduction measures with defined goals and benchmarks for the Virginia-class production program.

T-38 replacement aircraft

The committee believes that the T-45, with requisite modifications, could serve as both the next-generation joint trainer and as a replacement for the Air Force T-38 trainer. The committee notes that the service plans to spend $1.5 billion over the future-years defense program to maintain the T-38 fleet at a cost per flying hour that is double that of the T-45, and that the cost of developing a different replacement trainer and training system for the T-38 would cost an estimated $2.0 billion.

In addition, the 2005 RAND study, entitled `Assessing the Impact of Future Operations on Trainer Aircraft Requirements,' states that the `current T-38 fleet averages almost 14,000 flying hours per airframe, which is almost twice the original design service life,' and that if no replacement aircraft is programmed and the T-38 is operated as late as 2040, the Air Force could be training a sizable portion of its new pilots in airframes that are almost 80 years old.

Accordingly, the committee directs the Secretary of the Air Force to conduct a study that would determine the suitability of the T-45 and Korean built KT-50 training aircraft to replace the T-38. Given that all three trainers possess excellent capabilities, the study should focus on cost of procurement, operating costs, the availability of a complete training system, and developmental costs. In addition, if the Secretary determines that sustainment of the current trainer is the most cost-effective course of action, the study should explain how large, long-term sustainment expenditures are justified when readily available replacements are immediately available, and funds to develop a joint follow-on trainer will not become available for the foreseeable future. The Secretary of the Air Force should submit a report on the results of the study to the congressional defense committees by March 15, 2007.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Explanation of tables

The following tables provide the program-level detailed guidance for the funding authorized in title II of this Act. The tables also display the funding requested by the administration in the fiscal year 2007 budget request for research, development, test and evaluation programs, and indicate those programs for which the committee either increased or decreased the requested amounts. As in the past, the administration may not exceed the authorized amounts (as set forth in the tables or, if unchanged from the administration request, as set forth in budget justification documents of the Department of Defense), without a reprogramming action in accordance with established procedures. Unless noted in this report, funding changes to the budget request are made without prejudice.

Insert graphic folio 157 SR254.068

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

Independent estimate of costs of the Future Combat Systems (sec. 211)

The committee recommends a provision that would withhold $500.0 million from the amount of funds authorized to be appropriated for the development of the Future Combat Systems (FCS) until the Secretary of Defense submits a report of an independent cost estimate for FCS. The provision requires that the independent cost estimate be conducted by a federally funded research and development center and include the research, development, test and evaluation, and procurement costs for the system development and demonstration phase of the core FCS program; the FCS technologies to be incorporated into the equipment of the current force of the Army; the installation kits for the incorporation of the FCS technologies into the current force equipment; the systems treated as the complementary systems for the FCS program; science and technology programs that support the FCS program and any pass-through charges anticipated to be assessed by the lead systems integrator of the FCS and its major sub-contractors.

Section 211 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) required the Undersecretary of Defense for Acquisition, Technology, and Logistics (USD (AT&L)) to submit a program cost estimate to the Congress prior to the FCS Milestone B update required by the acquisition decision memorandum that approved the FCS program entry into Milestone B. This report requirement was in response to the restructure of the FCS program to include costs of transferring FCS technology to the current force programs of the Army, and to restore several FCS platforms into the program. However, the report was never delivered because the Milestone B update was postponed.

Section 213 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) required the USD (AT&L) to submit the results of an independent cost estimate, prepared by the cost analysis improvement group (CAIG) of the Office of the Secretary of Defense, with respect to the Future Combat Systems program. While the CAIG independent cost estimate may provide insights into the cost of the FCS program, the committee believes that the Army may be underestimating FCS costs.

The Government Accountability Office highlighted in testimony before the Subcommittee on AirLand of the Committee on Armed Services,

The total cost for the FCS program, now estimated at $160.7 billion (then year dollars), has climbed 76 percent from the Army's first estimate. Because uncertainties remain regarding FCS's requirements and the Army faces significant challenges in technology and design maturity, we believe the Army's latest cost estimate still lacks a firm knowledge base. Furthermore, this latest estimate does not include complementary programs that are essential for FCS to perform as intended, or all of the necessary funding for FCS spin-outs.

The committee believes that an independent cost estimate will provide the committee additional assurance as to the fidelity of the Army's own cost estimate and a better understanding of the factors that have driven up the costs of the FCS program.

Funding of defense science and technology program (sec. 212)

The committee recommends a provision that would extend the funding objective for science and technology (S&T) programs, as required by section 212 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65), to fiscal year 2012, and require the submission of two reports if the Department of Defense fails to meet the outlined funding objective in any single fiscal year budget request. The first required report would be submitted with the budget request in the following year and would provide a detailed, prioritized list of high-quality, military relevant, unfunded opportunities in defense science and technology. The second report would be submitted within 6 months of the current budget request and would contain a classified and unclassified analysis and evaluation of international research and technology capabilities that threaten U.S. global leadership in key areas described by the Joint Warfighting Science and Technology Plan, the Defense Technology Area Plan, and the Basic Research Plan.

The committee continues to support stable funding for Department S&T programs, which have a demonstrated history of supporting the warfighter and exploring innovative solutions to current challenges and to emerging and projected threats. Section 212 provided a modest funding objective for S&T of 2 percent growth over inflation from budget request to budget request. The committee commends the Department for supporting long-term research efforts, which have grown in rough parallel to the defense budget, but believes strict adherence to simple investment targets is necessary to ensure consistent and stable funding over time. The reports required by this section, if funding objectives are not reached, would inform the Department and Congress on the potential consequences of such decisions and would provide valuable information to Congress on priority areas that would benefit from additional resources.

Hypersonics development (sec. 213)

The committee recommends a provision that would direct the Secretary of Defense to establish a joint technology office (JTO) to coordinate, integrate, and manage hypersonics research, development, and demonstration programs and budgets. Under the provision, the JTO would: provide for integration of all department hypersonics programs; coordinate Department of Defense hypersonics programs with the National Aeronautics and Space Administration (NASA); and maintain approval and certification authority for hypersonics system demonstration programs. The provision would further require the JTO to work with the joint staff and NASA to develop a roadmap for a joint hypersonics research program to meet short-, mid-, and long-term goals consistent with Department missions and requirements and with clear acquisition transition plans. The roadmap would be submitted to Congress with the fiscal year 2008 budget request.

The committee has followed with great interest the development of hypersonic technologies over the past several years and believes that successful development of the capability holds tremendous potential for high-speed strike, global reach and space access missions. However, significant challenges remain.

The committee is concerned that Department hypersonics research programs are not integrated or even coordinated, either internally or with NASA efforts, especially since the cancellation of the X-43A project. The committee notes that some Navy hypersonics research programs, conducted with the Defense Advanced Research Projects Agency (DARPA), will be completed in fiscal year 2007, yet a transition path has not been identified. Further, it is not clear how the Navy RATTLRS program complements parallel approaches to high-speed strike missions. DARPA planned to initiate a new hypersonics effort in fiscal year 2007 for a `transatmospheric' vehicle to `further mature, integrate and flight-demonstrate propulsion technologies developed by the high speed reusable demonstration and Falcon programs.' DARPA programs also lack a clear transition path or tangible service transition support. Finally, the Air Force plans to conduct a first-flight demonstration of the X-51A Scramjet in fiscal year 2009, yet the Office of the Air Force Director of Test and Evaluation (T&E), which conducts annual surveys on future T&E requirements, indicates that no program office has reported a need for hypersonics testing facilities. The Army has indicated similar concern with insufficient links between hypersonics research efforts and service requirements. The committee also recognizes that the operational community views maturity of the technology and prospects for near-term transition with some skepticism.

The activities required by the recommended provision are designed to ensure the Department pursues a joint, integrated hypersonics program to achieve the long-term vision of a reconfigurable, combined-cycle aircraft that would provide the nation with meaningful operational capabilities, including strategic reconnaissance, global strike, and rapid access to space.

Trident sea-launched ballistic missiles (sec. 214)

The committee recommends a provision that would prohibit $95.0 million of the funds authorized to be appropriated for the Conventional Trident Modification (CTM) program from being obligated or expended in support of the program until the Secretary of Defense, in consultation with the Secretary of State, submits a report to the congressional defense committees.

The report would address a wide range of issues associated with the Navy proposal to modify twenty-four Trident D-5 ballistic missiles, which currently carry nuclear warheads, to each carry four conventional kinetic warheads. Under the proposal, two modified D-5 missiles with conventional kinetic warheads would be deployed on each of the Ohio Class Trident ballistic missile submarines.

The provision would also require the Secretary of Defense and the Secretary of State to include in the report a joint statement on how to ensure that the use of a conventional D-5 missile will not result in an intentional, inadvertent, mistaken or accidental reciprocal or responsive launch of a nuclear strike by another country.

The provision would permit the Navy to use up to $32.0 million of the funds authorized in PE 0604327N, for Advanced Conventional Strike Capability. The committee further directs the Navy to use the $32.0 million only for research and development on technologies in support of the conventional D-5 modification, but not to support procurement or deployment activities in support of the conventional Trident modification program. In addition, up to $20.0 million of the funds authorized for the CTM program may be used to conduct the required study.

SUBTITLE C--MISSILE DEFENSE PROGRAMS

Availability of research, development, test, and evaluation funds for fielding ballistic missile defense capabilities (sec. 231)

The committee recommends a provision that would authorize the use of funds, authorized to be appropriated for fiscal year 2008, for research, development, test, and evaluation for the Missile Defense Agency, for the development and fielding of ballistic missile defense capabilities.

Policy of the United States on priorities in the development, testing, and fielding of missile defense capabilities (sec. 232)

The committee recommends a provision that would make it the policy of the United States to accord a priority within the missile defense program to the development, testing, fielding, and improvement of effective near-term missile defense capabilities, including ground-based interceptors, sea-based interceptors, additional Patriot PAC-3 units, the Terminal High Altitude Area Defense system, and sensors based on land, sea, and in space that support these interceptor systems.

Over the last two years, Congress has advised the Missile Defense Agency (MDA) to focus its efforts on those missile defense systems in which heavy investments already have been made and which are now just starting to provide a measure of protection for the United States and its deployed forces. Accordingly, the committee believes that rigorous and successful development, testing, and fielding of operational systems in sufficient numbers to counter the threat must take priority over the development of the next generation of missile defense systems.

The committee notes that in its fiscal year 2007 Budget Estimate Overview, the MDA states that it `worked within its fiscal controls across the future years defense program to weigh alternatives and balance the approaches to a layered defense.' The committee believes the MDA, in pursuing a balanced investment approach, has funded longer-term efforts to the detriment of the successful development, testing, and fielding of the current generation of missile defense systems. For example, the MDA is requesting funds for only a single intercept test of the ground-based midcourse defense (GMD) system in 2007. This would appear to be a high-risk approach given the importance of this program for the defense of the United States against long-range ballistic missile attack. The MDA also reduced the number of ground- and sea-based interceptor missile deliveries over the future-years defense program in order to invest more in development upgrades to these and other systems. While evolutionary improvements to the current systems are prudent and should continue, the committee believes additional funding is necessary to restore missile inventory to levels previously thought necessary by the Department of Defense to counter the threat.

While reducing the funding necessary both for critical near-term testing and for increasing the inventory of interceptor missiles, the Missile Defense Agency plans to spend approximately $9.0 billion between fiscal years 2006 and 2015 to develop the Kinetic Energy Interceptor (KEI). In a prepared statement to the Subcommittee on Strategic Forces of the Committee on Armed Services, the Director of the MDA stated that the KEI is a boost-phase effort that `could be used as part of an affordable, competitive next-generation upgrade for our mid-course or even terminal interceptors.'

The committee does not believe the Department of Defense should make such a large investment in `a next generation upgrade' until the current generation of missile defense systems has been successfully tested and fielded in numbers sufficient to address the near-term threat. Continued research and development of the critical technologies related to KEI is warranted, but at a much lower level, and as a hedge against the failure of the lead boost-phase missile defense candidate, the Airborne Laser.

Accordingly, the committee recommends the following adjustments to the budget request for missile defense programs.

Ground-based Midcourse Ballistic Missile Defense

The budget request included $2.4 billion in PE 63882C for the Ballistic Missile Defense (BMD) Midcourse Defense Segment to cover continued development, ground and flight testing, fielding, and support for the Ground-based Midcourse Defense (GMD) system. The committee recommends an increase of $200.0 million in PE 63882C, specifically to enhance the GMD testing program and to enable the GMD system to perform concurrent test and operations (i.e., permit testing, maintenance, and training activities to continue, while simultaneously allowing the combatant commander to maintain readiness to execute missile defense operations in an emergency). The committee directs that $115.0 million be used for an additional integrated intercept test of the GMD system in 2007; $60.0 million be used to accelerate capabilities that would enable concurrent test and operations of the GMD system; and $25.0 million be allocated for long-lead purchases for six ground-based interceptor test missiles in fiscal years 2008 and 2009. The committee expects the MDA to adjust its spending over fiscal years 2008-2011 to complete the tasks directed above.

The committee directs the Director of the MDA to submit a report to the congressional defense committees no later than March 1, 2007. The report should detail the efforts that would need to be taken and funding required to maintain continued production of the Boost Vehicle Plus (BV+) interceptor, and make an assessment of the risk of inadequate GBI availability using the Orbital Boost Vehicle (OBV).

Aegis Ballistic Missile Defense

The budget request included $1.0 billion in PE 63892C, for the sea-based Aegis Ballistic Missile Defense (BMD) system. The Aegis BMD is intended to provide protection against short- and medium-range ballistic missiles. The committee recommends an increase of $100.0 million in PE 63892C to restore the delivery of SM-3 interceptors to 120 by the end of fiscal year 2011, and to increase the overall effectiveness of the Aegis BMD system capability against longer-range threats. Of the increased amount, the committee directs $70.0 million be applied toward procuring 24 additional SM-3 block 1B missiles over fiscal years 2008 to 2011, and $30.0 million be used to accelerate SM-3 and Aegis weapon system integration to take full advantage of missile and weapons systems capabilities, including the BMD signal processor and two-color seeker. MDA is expected to budget for the completion of these tasks over fiscal years 2008 to 2011.

Patriot missile defense system

The budget request included $489.1 million in Missile Procurement, Army (MPA), for 108 Patriot PAC-3 missiles; and $70.0 million for Patriot modifications. The Patriot ballistic missile defense system demonstrated its worth during Operation Iraqi Freedom by intercepting all nine Iraqi short-range ballistic missiles that were engaged by Patriot. The committee notes that the predominant foreign ballistic missile threat to United States forces is from short-range ballistic missiles, and that the Patriot is designed to defend against such ballistic missile threats. The committee recommends an increase of $75.0 million in MPA to support the upgrade of Patriot battalions to the configuration-3 capability. This upgrade would significantly extend the defensive range and capability of over 2,000 Patriot PAC-2 missiles now in the inventory. Additional funding for these Patriot PAC-3 upgrades has been included on the Chief of Staff of the Army's unfunded priorities list. The committee also recommends an increase of $25.0 million in MPA for purchases of 8 additional PAC-3 missiles in fiscal year 2007, in response to calls from combatant commanders for more Patriot missiles to counter the threat.

Kinetic Energy Interceptor

The budget request included $405.5 million in PE 63886C, for Ballistic Missile Defense System Interceptors, for continued development of the Kinetic Energy Interceptor (KEI). The request is almost double the amount appropriated for KEI in fiscal year 2006, and begins a sharp rise in projected KEI spending that amounts to $4.6 billion between fiscal years 2007 and 2011. As noted above, the committee believes this level of effort is too high for a boost phase risk-reduction effort and next generation missile defense system. The committee recommends a decrease of $200.0 million in PE 63886C for the KEI program. The committee believes these funds are more urgently required for an additional flight intercept test of the GMD system in fiscal year 2007 and to help increase the number of SM-3 missile deliveries starting in fiscal year 2008. The committee directs that remaining funds be used to mature those critical technologies necessary to demonstrate the viability of the KEI design.

Ballistic missile defense reductions

The budget request included $506.8 million in PE 63889C, for Ballistic Missile Defense Products; 473.0 million in PE 63890C, for Ballistic Missile Defense System Core; and $374.5 million in PE 63891C, for MDA Special Programs. The committee recommends a decrease of $40.0 million in PE 63889C, for Ballistic Missile Defense Products; a decrease of $40.0 million in PE 63890C, for Ballistic Missile Defense System Core; and a decrease of $20.0 million in PE 63891C, for MDA Special Programs, to offset the additional funding necessary for the GMD and Aegis BMD programs. The Director of the MDA may take these reductions in funding from among the program elements mentioned above, at his discretion.

One-year extension of Comptroller General assessments of ballistic missile defense programs (sec. 233)

The committee recommends a provision that would extend until fiscal year 2008 the requirement for the Comptroller General to provide an assessment of the extent to which the Missile Defense Agency achieved the goals established for that fiscal year for each ballistic missile defense program of the Department of Defense.

Submittal of plans for test and evaluation of the operational capability of the ballistic missile defense system (sec. 234)

The committee recommends a provision that would require each plan approved by the Director of Operational Test and Evaluation to test and evaluate the operational capability of the ballistic missile defense system, as required by section 234(a) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 2431 note), to be submitted to the congressional defense committees within 30 days of such approval.

Annual reports on transition of ballistic missile defense programs to the military departments (sec. 235)

The committee recommends a provision that would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to submit a report to the congressional defense committees, not later than March 1 of 2007, and annually thereafter through 2013, on the plans of the Department of Defense for the transition of missile defense programs from the Missile Defense Agency to the military departments. Each report required would cover the period of the future-years defense program for the year in which the report is submitted. Each report would include: which missile defense programs are, or are not, planned for transition; the schedule for each transition; a description of the status of the transition plans and agreements; an identification of the entity responsible for funding each program to be transitioned; a description of the funds that will be used for each such program; and an explanation of the number of systems planned to be procured for each program to be transitioned, and a procurement schedule.

SUBTITLE D--OTHER MATTERS

Extension of requirement for Global Research Watch Program (sec. 251)

The committee recommends a provision that would extend the requirement for the development of a Global Research Watch database until September 30, 2011. The committee commends the Director of Defense Research and Engineering (DDRE) for development of the Global Technology Knowledge Base program as a response to the Global Research Watch mandate under section 241 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136). The pilot database informs Department of Defense decision makers on the capabilities of the international community in areas of defense science and technology. The committee directs the DDRE to aggressively work to include international capabilities analyses from the military departments and defense agencies in the program as directed in the original statute, section 2365 of title 10, United States Code.

The committee also notes that coordinating the efforts of the Global Research Watch program with the Militarily Critical Technologies Program would provide the Department with an additional source of data on international research capabilities and their relationships to critical defense technologies and systems. Elsewhere in this report, the committee recommends a transfer of $2.0 million from Operation and Maintenance, Defense-Wide to PE 65110D8Z for critical technology support to provide for more timely updates to the Militarily Critical Technologies List and the Defense Science and Technology List. The committee urges the DDRE to consider establishing a domestic version of the technology knowledge base to inform industrial base policy decisions. The committee notes that this knowledge base should be developed through a collaboration of the Department technology development and industrial policy communities and should utilize input from defense industry.

Finally, the committee notes that the international community may have capabilities, research, and technologies that could be useful in the Department's efforts to combat improvised explosive devices (IEDs). The committee directs the Director of the Joint IED Defeat Office (JIEDDO) to work with the DDRE to undertake an international survey of research and technology that would be supportive of the combating IED mission. The committee directs the Director of JIEDDO and the DDRE to report to Congress on the results of the survey to include a description of any current or planned international cooperative technology development programs in this area and an accounting of funding available for such activities. This report should be transmitted to Congress not later than January 31, 2007.

Expansion and extension of authority to award prizes for advanced technology achievements (sec. 252)

The committee recommends a provision that would extend the authority to award prizes for advanced technology achievements to September 30, 2011. The provision would also elevate the authority to the Director of Defense Research and Engineering (DDRE), which would allow for its use by the Defense Advanced Research Projects Agency or other components under the DDRE. The provision would further expand the authority to include the military departments, and would update reporting requirements under section 257 of the National Defense Authorization Act of Fiscal Year 2006 (Public Law 109-163) on the use of the authority to include information relevant to the military departments and to ensure proper oversight of the program. The committee directs the Secretary of Defense to budget for anticipated costs to execute the prize competitions and to clearly identify those funds in annual budget justification materials.

Policies and practices on test and evaluation to address emerging acquisition approaches (sec. 253)

The committee recommends a provision that would require the Under Secretary of Defense for Acquisition, Technology, and Logistics, in coordination with the Director, Operational Test and Evaluation (OTE) and the Director of the Defense Test Resource Management Center, to review and revise policies and practices on test and evaluation in light of emerging approaches to acquisition. The provision would require consideration of rapid, time-certain and traditional acquisition timeframes in review of current test and evaluation regulations to ensure adequate and timely testing is conducted.

The committee notes that robust analysis of technology maturity levels combined with early planning for developmental and operational testing contribute to successful acquisition programs. The committee further notes that rapid fielding initiatives, which have proven successful in providing critically needed equipment and capabilities to the warfighter, may contain lessons learned for the test and evaluation process. The committee believes it is necessary to update policies to ensure adequate test and evaluation in the development of acquisition programs, in planning for testing facility requirements, and in defining test and evaluation processes for the growing variety of acquisition and deployment strategies.

Finally, the committee strongly encourages the Secretary of Defense to nominate a permanent Director of Operational Test and Evaluation as soon as possible. The committee notes that this position has been vacant since February 15, 2005. This congressionally-mandated, presidentially-nominated, and Senate-confirmed position plays a key role in ensuring the operational effectiveness of our weapons systems in combat. The Director supports efforts to reform acquisition processes and effectively and efficiently develop and deploy major, complex systems like the Future Combat Systems, Advanced Seal Delivery System, and Joint Strike Fighter, in a manner that is operationally effective, on budget, and within planned schedules.

Development of the propulsion system for the Joint Strike Fighter (sec. 254)

The committee recommends a provision that would direct the Secretary of Defense to continue the development and sustainment of the Joint Strike Fighter (JSF) program with two competitive propulsion systems throughout the life cycle of the aircraft, or enter into a one-time firm-fixed-price contract for a selected propulsion system for the life cycle of the aircraft following the initial service release of the JSF F135 propulsion system in fiscal year 2008.

During the 1970's and early 1980's, Pratt & Whitney was the sole source provider of engines for the F-14, F-15, and F-16 aircraft. Because of persistent engine problems that resulted in the loss of aircraft and degraded readiness, Congress directed the Department of Defense to develop and produce an engine to compete with Pratt & Whitney engines on these aircraft. The benefits that resulted from this competition included improved performance, reduced risk, increased readiness, lower cost of ownership, improved contractor responsiveness to customer needs, and over $4.0 billion of cost savings. Congress once again directed the Department to provide for an engine competition for the JSF in 1996 out of concerns for a lack of competition expressed in the National Defense Authorization Act for Fiscal Year 1996 (P.L. 104-106). Congress has consistently supported a competitive engine program for the Joint Strike Fighter for the past 10 years.

The JSF program is the largest acquisition program, in terms of funding, in Department of Defense history. Total JSF deliveries may well exceed 4,000 aircraft worldwide, with a resultant level of propulsion business in the tens of billions of dollars. The committee is concerned that relying on a sole engine supplier for a single-engine aircraft to do multiple missions for multiple services and multiple nations presents an unnecessary operational and financial risk to our nation.

The committee is also concerned that the Department's analysis provided to the committee, as justification for the termination of the F136 interchangeable engine, accounted for only 30 percent of the engine costs over the life cycle of the aircraft and failed to comply with the Department's policy on economic analysis that would have required the inclusion of the total life cycle cost. If the Department had conducted a full life cycle analysis, the committee believes that the results of the analysis would show significant cost savings that could be achieved through a competitive engine strategy. The committee believes that through the enduring value of competition, sufficient savings will be generated from a series of competitive engine procurements over the life cycle of the aircraft that will more than offset the cost of completing the F136 engine development. In order to ensure that the Congress has the complete picture of the full life cycle costs, the committee has recommended another provision described elsewhere in this report that would require the Secretary of Defense and the Comptroller General to conduct independent life cycle cost analyses addressing this issue.

Independent cost analyses for Joint Strike Fighter engine program (sec. 255)

The committee recommends a provision that would direct the Secretary of Defense, a federally-funded research and development center (FFRDC) chosen by the Secretary, and the Comptroller General to conduct independent life cycle cost analyses of the development and sustainment of the Joint Strike Fighter (JSF) program with two competitive propulsion systems throughout the life cycle of the aircraft, versus terminating the alternate engine development and proceeding with only one engine.

The provision would also require that the Comptroller and the FFRDC certify that they had access to sufficient information upon which to make informed judgments on the life cycle costs of the two alternatives.

As noted elsewhere in this report, the committee is concerned that the Department of Defense analysis provided as justification for the termination of the F136 interchangeable engine did not account for all of the costs over the life cycle of the aircraft.

Sense of the Senate on technology sharing of Joint Strike Fighter technology (sec. 256)

The committee recommends a provision that would express the sense of the Senate that the Secretary of Defense should share technology with respect to the Joint Strike Fighter (JSF) between the United States Government and the Government of the United Kingdom.

The committee recognizes the importance of the strong political and military alliance between the United States and the United Kingdom. The committee places a high premium on ensuring that U.S. and U.K. armed forces can operate together seamlessly in ongoing and future combined operations.

The committee is concerned that existing U.S. regulations and procedures governing U.S.-U.K. technology sharing may unnecessarily impede information-sharing and military interoperability to the detriment of achieving our common security interests in ongoing and future operations. With the increasing complexity of technology and its growing importance to combat power, the ability to share information and technology in general between the United States and the United Kingdom is increasingly important. Anecdotal evidence suggests that existing impediments are unnecessarily complicating the planning, coordination, and execution of combined military operations in Iraq and Afghanistan.

The committee notes that technology sharing is a two-way street. The United Kingdom has made important contributions to a variety of U.S. military capabilities ranging from improvised explosive device (IED) detection technology to aircraft propulsion system technology. The committee believes such contributions from allies could become increasingly important given the many demands on the U.S. defense budget and the technological challenges we can expect to face on the battlefield of the future.

The committee is concerned that, until the issue of technology sharing between the United States and the United Kingdom is resolved, the potential for full cooperation could be undermined, to the detriment of both countries. It is reasonable for the United States and the United Kingdom to seek a degree of operational sovereignty to ensure successful operation of the JSF by its military services, including the ability to maintain, repair, and upgrade the fleet to meet the future needs of U.S. and U.K. armed forces. It is also reasonable for both nations to protect the most sensitive technologies. Resolving the tensions between these two reasonable ten-ets is the dilemma.

With these considerations in mind, the committee strongly recommends that the President enter into a bilateral agreement with the United Kingdom to provide for the sharing of defense technology between our two governments in order to facilitate closer defense cooperation between the United States and the United Kingdom. Such an agreement should: (1) promote greater interoperability in the conduct of current and future military operations; (2) establish a vehicle and set policy for greater and easier sharing between the Governments of the United States and the United Kingdom of both classified and unclassified goods, technologies, and services; (3) drive greater bilateral, interagency, and industry coordination at the strategic, planning, resource, and execution levels; and (4) be consistent with the national security interests of both nations.

BUDGET ITEMS--ARMY

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Army basic research

The budget request included $137.6 million in PE 61102A, for defense research sciences; $68.5 million in PE 61103A, for university research initiatives; and $86.4 million in PE 61104A, for university and industry research centers. Through these basic research accounts, the Army supports fundamental military science at universities and innovative partnerships between academia and industry through Collaborative Technology Alliances.

Ongoing work in the areas of modeling and simulation, materials and composites, nanotechnology, biotechnology, energy and power, and dynamic terrain analysis complement a new focus on network and information sciences. The committee recommends an increase of $9.1 million in PE 61102A for expansion of work in key areas, including $1.0 million for advanced ground reliability research; $2.1 for organic semiconductor modeling and simulation research; $2.0 million for a dynamic landscape support program; $1.0 million for integrated nanosensor technologies for nuclear, chemical, and biological detection applications; and $3.0 million for the development of nanotechnologies to enhance intelligence, surveillance, and reconnaissance capabilities to tag, track, and locate enemy forces or weapons. The committee recommends an increase of $2.0 million in PE 61103A for low temperature vehicle performance research.

The committee recommends an increase of $7.25 million in PE 61104A for acceleration of defense university research, including $1.0 million for information assurance research; $1.0 million for integrated systems sensing, imaging, and communications research; $2.0 million for nanotubes composite materials research; $2.0 million for development of slow rotor concepts; $1.0 million for analyses of regional, political, social and economic issues affecting U.S. Southern Command's area of responsibility; and $250,000 for transparent nanocomposite armor.

The committee is aware of the Department of Defense's requirement to triage large quantities of documents in foreign languages to provide prompt support to analytical and targeting efforts in support of the global war on terrorism. This capability is required at all echelons from tactical to strategic. The quantity and quality of document exploitation (DOCEX) can be enhanced by continued technological development in the Harmony DOCEX Suite, which is currently fielded. Technologies to improve the exploitation of paper documents as well as electronic media, to include live web sites, have been identified. The committee recommends an increase of $4.0 million in PE 61102A for the continued development, integration, and fielding of enhanced document exploitation systems.

PACE early career awards

The budget request included $137.6 million in PE 61102A, $366.6 million in PE 61153N, and $250.2 million in PE 61102F for Army, Navy, and Air Force defense research sciences activities. The committee recommends an increase of $1.0 million in each of the three program elements: PE 61102A, PE 61153N, and PE 61102F for the establishment of additional early career awards under the Protecting America's Competitive Edge (PACE) program to support service research efforts.

The committee notes that the recent National Research Council (NRC) report, entitled `Assessment of Department of Defense Basic Research,' recommended that `the Department of Defense should, through its funding and policies for university research, encourage increased participation by younger researchers as principal investigators.' The NRC endorsed this idea in their report, entitled `Rising Above the Gathering Storm,' which recommended that `the Federal Government should establish a program to provide 200 new research grants each year at $500,000 each, payable over 5 years, to support the work of outstanding early-career researchers.' The committee notes that it is essential to replenish the research community with young, innovative scientists and engineers working in defense research areas in order to support the development of future military capabilities. The committee further notes that the Department established a number of activities to support early career researchers, including the Navy's Young Investigator Program and the Presidential Early Career Awards for Science and Engineering. The Department estimates it will support 130 early career awards with funding available in the current budget request.

Although the details of the execution shall be established by the Secretary of Defense, the committee recommends that these awards be available for researchers not more than 5 years removed from their doctorate or other terminal degree or professional qualification, and that they should be structured to provide for stable funding support for individuals for a period of 5 years. The committee directs the Secretary to report to the congressional defense committees on the execution of these funds, including their coordination with other Department activities in supporting early career scientists and engineers, no later than May 1, 2007.

Army materials technology

The budget request included $18.8 million in PE 62105A, for materials technology. Army programs under this account aim to provide lightweight and affordable materials and structures to enable revolutionary survivability and lethality technologies along with improved performance and durability for Army systems and cost-effective manufacturing processes. To accelerate work in selected areas of particular relevance to current threats, the committee recommends an increase of $5.4 million in PE 62105A, including $1.0 million for flexible, lightweight thermoplastic composite body armor; $1.6 million for future affordable multi-utility materials; $500,000 for simulations of improvised explosive devices; $300,000 for a control system for the laser powder deposition manufacturing process; and $2.0 million for munition shape charge control research.

Advanced microelectronics manufacturing

The budget request included $38.4 million in PE 62120A, for sensors and electronic survivability. The committee recommends an increase of $3.0 million in PE 62120A for the development of advanced capabilities for low-volume manufacturing of flexible electronics, whose defense applications could include flexible displays, lightweight, miniaturized sensors, and portable power systems. The committee notes that this type of effort is consistent with the Defense Science Board's recommendation in its recent report, entitled `High Performance Microchip Supply,' to develop technology and equipment for production of low-volume microelectronics to meet unique Department of Defense needs.

Unmanned payload concepts

The budget request included $38.4 million in PE 62120A, for sensors and electronic survivability. Asymmetric threats and unpredictable battlefields increase the importance of flexible response and logistics options. The committee recommends an increase of $1.5 million in PE 62120A for acceleration of concept demonstration on a remote-operated, lighter-than-air unmanned vehicle with scalable payload capabilities.

Army missile technology

The budget request included $59.4 million in PE 62303A, for applied research on missile technology. The committee endorses the Army's efforts to develop unmanned air systems as an integral part of Future Combat Systems (FCS). The committee recommends an increase of $2.5 million in PE 62303A for the development and demonstration of unmanned air systems technologies as part of FCS. The committee notes that such programs should be consistent with the Department's unmanned systems policy as required elsewhere in this report.

Hypervelocity ground testing

The budget request included $59.4 million in PE 62303A, for missile technology. As the Department of Defense develops hypersonic systems for global and rapid strike missions, availability of domestic, full-scale ground test facilities would mitigate costs and risks associated with these complex systems. The committee recommends an increase of $3.5 million in PE 62303A for hypervelocity ground testing.

Multifunctional robot platform

The budget request included $16.2 million in PE 62308A, for advanced concepts and simulations. Robotic platforms continue to excel in the performance of dangerous missions. The committee recommends an increase of $3.0 million in PE 62308A for rapid integration of optical technology and advanced acoustic detection and direction finding hardware into the Robot Enhanced Detection Outpost With Lasers platform.

Combat vehicle and automotive technology

The budget request included $59.3 million in PE 62601A, for combat vehicle and automotive technology. Component technologies explored under this account support the Army's current and future combat and tactical vehicle fleets. To promote more fuel efficient engines, the committee recommends an increase of $2.5 million in PE 62601A for development of advanced electric drives designed to result in easily replaceable, quiet, robust engines with greater power density and torque.

Weapons and munitions technology

The budget request included $35.3 million in PE 62624A, for weapons and munitions technology. Army applied research efforts under this account improve the lethality, survivability, and affordability of current and future force equipment and weapons. The committee recommends an increase of $10.0 million in PE 62624A, including $2.0 million to transition the active coatings technology program for use on Army helicopters; $2.5 million for continued rarefaction wave gun research; $3.0 million for expansion of the domestic capability to produce a wider variety of parts-on-demand for unmanned systems; and $2.5 million for integration of Army remote weapons systems armaments on the dual track, Ripsaw, unmanned ground vehicle.

Human factors engineering

The budget request included $18.9 million in PE 62716A, for applied research on human factors engineering technology. As noted elsewhere in this report, the committee supports development of integrated and interoperable unmanned systems that can work seamlessly with manned systems. Army applied research on autonomous robots that work together to solve problems holds promise for missions that do not require a man in the loop as well as for improved manned-unmanned collaborations. The committee recommends an increase of $2.5 million in PE 62716A for team performance and optimization research and expanded complex research, modeling, and simulation of cognition and team dynamics.

Mapping and detection of unexploded ordnance

The budget request included $17.9 million in PE 62720A, for environmental quality technology, but included no funding for mapping and detection of unexploded ordnance. The committee notes that the problem of detecting and removing unexploded ordnance from Department of Defense facilities closed or realigned under rounds of base closure and realignment (BRAC), former used defense sites, and at active installations, including operational ranges, is an enormous and technically complex task. The current estimate of the cost to complete the clean up of unexploded ordnance at all of the Department's installations, formerly used defense sites, and BRAC sites is $20.1 billion.

Development of the technology to more rapidly and efficiently detect and discriminate unexploded ordnance from other waste is ongoing and has the potential to significantly reduce the overall cost of unexploded ordnance detection and clean up. This project would continue work begun in fiscal year 2005 to improve the ability of ground penetrating radar to detect unexploded ordnance at greater depths in highly magnetic soil, while reducing the number of false alarms. While the focus of the effort would be on ground penetrating radar systems, all detection technologies, which may have an application, would be investigated. Due to the geological characteristics of highly magnetic soil, the committee believes that application of multiple technologies and fusion of their outputs may be needed to improve detection and reduce the number of false alarms. The committee recommends an increase of $5.0 million in PE 62720A for mapping and detection of unexploded ordnance.

Warfighter technology

The budget request included $25.4 million in PE 62786A, for warfighter technology. Army applied research under this account concentrates on soldier survivability and performance, including improved deployable, temporary housing, and food safety. The committee recommends an increase of $3.5 million in PE 62786A for advances in both of these soldier safety areas, including $2.0 million for advanced materials research on ballistic tent inserts and $1.5 million for biosecurity research for soldier food safety.

Army medical technology

The budget request included $75.4 million in PE 62787A, for medical technology and $50.8 million in PE 63002A, for medical advanced technology. Research under these two accounts has yielded numerous advances in combat casualty care and battlefield trauma medicine. The committee continues to place a priority on advances in military-specific medical treatments, wound characterization, and understanding of weapons impacts. The committee recommends an increase of $5.5 million, in PE 62787A, including $2.0 million for advanced bioengineering for enhancement of solider survivability; $1.0 million for blast protection research; and $2.5 million for acceleration of pilot clinical studies on protein hydrogel treatments. The committee further recommends an increase of $23.5 million in PE 63002A, including $2.0 million for rapid development of advanced, neurally-controlled lower limb prostheses; $3.0 million for applied emergency hypothermia; $3.0 million for fibrinogen bandage improvements; $2.0 million for integrated clinical information systems in support of the Armed-forces Health Longitudinal Technology Application; $1.0 million to promote interoperability standards for medical imaging; $3.0 million for robotic tele-surgery research; $2.0 million for tissue engineering research; $2.0 million for early diagnosis and treatment of post-traumatic stress disorder; $3.5 million for soldier treatment and regeneration research; and $2.0 million for surgical safety systems designed to improve remote patient care in hostile environments.

Advanced aviation technology

The budget request included $64.7 million in PE 63003A, for aviation advanced technology. Army aviation technology programs focus on maturing and demonstrating manned and unmanned rotary wing vehicle technologies in support of the current and future force. To explore expanded capabilities in the areas of unmanned systems, specifically designed for logistics and supply support, the committee recommends an increase of $2.5 million in PE 63003A for a quick materiel express delivery system.

Unmanned tactical combat vehicles

The budget request included $64.7 million in PE 63003A, for aviation advanced technology, but included no funding for a tactical unmanned combat aerial vehicle (UCAV) designed specifically for flexible launch and rapid response. The committee believes that the development of a survivable turbine-electric hybrid, vertical take-off and landing tactical class UCAV could introduce a self-contained, rapid response, precision strike capability for use by the tactical commander. The committee recommends an increase of $14.0 million in PE 63003A for design and fabrication of the first Excalibur tactical UCAV system.

Nanotechnology manufacturing

The budget request included $74.7 million in PE 63004A, for weapons and munitions advanced technology. Research efforts on manufacturing processes for composite structures and new materials developed at the nano-scale for weapons, munitions, and fire control applications will ensure these multifunctional materials are also produced efficiently. The committee recommends an increase of $2.0 million in PE 63004A for nanotechnology manufacturing.

Combat vehicle research

The budget request included $110.0 million in PE 63005A, for combat vehicle and automotive advanced technology. Under this account, the Army pursues survivability and mobility, communications, energy and power, and autonomous technology improvements for manned and unmanned ground systems. The committee recommends an increase of $35.0 million in PE 63005A for acceleration of research in all of these areas, including $2.0 million for advanced thermal management controls; $3.0 million for further testing and refinement of anti-ballistic windshield armor; $3.0 million for the composite armored cab program; $1.0 million for application of compressible magneto-rheological fluids for shock absorbers and suspension systems to increase tactical vehicle off-road mobility; $1.5 million for development of logistical fuel processors; $3.0 million for a phase III pilot demonstration of fuel cell powered ground support equipment; $3.0 million for next generation non-tactical vehicle propulsion; $1.5 million for maturation of a domestic production source for the segmented band track; $2.0 million for solid oxide fuel cell materials and manufacturing; $2.0 million for tactical vehicle design tools; $3.0 million for power electronics systems research; and $10.0 million for unmanned ground vehicle prototype research to promote near-term transition of robotic ground vehicle technologies.

Command and control team training

The budget request included $6.8 million in PE 63007A, for manpower, personnel, and training advanced technology. Realistic training repeatedly receives credit for saving the lives of warfighters who face current and evolving threats. The committee recommends an increase of $2.0 million in PE 63007A for expansion of the successful advanced command and control team training program to division staffs.

Advanced simulated training

The budget request included $18.3 million in PE 63015A, for next generation training and simulation systems. The committee commends the Army for its innovative approach to providing up-to-date and realistic training environments. The committee recommends an increase of $6.0 million in PE 63015A for completion of the initial joint fires and effects training module.

Missile recycling capability

The budget request included $10.4 million in PE 63103A, for explosives demilitarization technology. The Army estimates that 600,000 outdated missiles at ammunition storage sites and plants across the country and overseas need to be recycled over the next 10 to 15 years. The committee recommends an increase of $2.0 million in PE 63103A for the continued development of technologies to disassemble missiles, and process and recover energetic materials for potential reuse.

Advanced electronic integration

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for advanced electronic integration.

The committee believes it is necessary to advance the state-of-the-art in space and missile defense system electronics by reducing the size, weight, and cost of electronic circuit cards and components, wire harnesses, and electronic cabling. The committee recommends an increase of $5.0 million in PE 63305A to be used to procure the special test-bed equipment and pay research personnel to conduct advanced electronic integration.

Advanced fuel cell research

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for advanced fuel cell research.

The committee notes that alternative sources of power for space and missile defense propulsion is an ongoing high priority requirement for the Department of Defense. Fuel cells and the associated hydrogen production capability may provide more efficient and long endurance propulsion and energy systems for space and air breathing platforms. The committee recommends an increase of $2.0 million in PE 63305A for continued research, design, and testing for advanced fuel cells.

Advanced Hypersonic Weapon modeling and simulation

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for modeling and simulation efforts in support of the Advanced Hypersonic weapon (AHW).

The committee is aware that the AHW is a candidate for the Department of Defense requirement for high-volume prompt global strike. Flight testing is necessary to validate the design and development of AHW. The committee believes a risk reduction effort to provide pre-flight verification through hardware-in-the-loop simulations would benefit this and other hypersonic development programs.

The committee recommends an increase of $11.0 million in PE 63305A for AHW modeling and simulation.

Army missile and space modeling and simulation technology

The budget request included $11.2 million in PE 63305A, for Army system integration (non space), but included no funding for interactive modeling and simulation management capabilities.

The committee notes that effective modeling and simulation is necessary for the development of missile defense and other military capabilities. Next generation architectural solutions for command and control and situational awareness are now being developed. The committee recognizes that funding could be used to mature technology and continue to combine government furnished components and commercial, off-the-shelf products to support the warfighter from the classroom to the field.

The committee recommends an increase of $4.0 million in PE 63305A to support continued development of interactive modeling and simulation management capabilities of the Army Space and Missile Defense Command.

Distributed operational control center

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for the distributed operational control center (DOCC).

The DOCC is envisioned to be a large network operations center for sensor research and development. The DOCC will provide fiber-optic connectivity with the Reagan Test Site, permitting remote operations for sensor and flight tests as well as other research and development efforts currently centered at the Army's Space and Missile Defense Command.

The committee recommends an increase of $5.0 million in PE 63305A for DOCC hardware procurement, network integration, and operations control software development to support the consolidation of range and space surveillance functions.

HighSentinel airship

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for the HighSentinel airship.

The committee understands that there is an operational requirement and mission need statement for multi-theater target tracking capabilities. The HighSentinel airship is intended to meet this requirement by carrying a communications or surveillance payload for up to 2 weeks of operations in support of the warfighter throughout the theater of operations. The airship would have a limited logistics support infrastructure and could be launched in-theater without the use of a hangar. The committee recommends an increase of $2.0 million in PE 63305A to be used to design a high altitude airship to carry tactical communications or surveillance payloads for the warfighter.

Low cost avionics

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for the development of low cost avionics. The committee recommends an increase of $2.0 million in PE 63305A to support the research, design, and testing of avionics subsystems interfaces that incorporate standards utilizing a commercial, open architecture, as is done in the commercial marketplace. This would permit more timely upgrade of existing systems and lower operating costs caused by obsolete systems and subcomponents.

Protected test link

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for the protected test link.

The Army Space and Missile Defense Center and Missile Defense Agency Modeling and Simulation Center of Excellence requires the capability for hardware-in-the-loop testing for ballistic missile defense system-level ground tests. A protected test link would enable each of the numerous missile defense system elements to participate in a systems-level test by providing physical as well as electronic protection measures for all test linkages. The committee recommends an increase of $2.0 million in PE 63305A for the development of a protected test link.

Standoff sensor for radionuclides and explosives

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for standoff sensors to detect radionuclides or other explosive devices.

The committee is aware that the defeat of improvised explosive devices is the number one priority of the entire Department of Defense. Likewise, detecting explosive devices containing nuclear materials remains a top priority. The committee supports a robust multidisciplinary research effort to solve the problems posed by the remote detection of radiological and explosive agents. The committee recommends an increase of $5.0 million in PE 63305A to continue and broaden the research effort to develop standoff, real-time sensors for radiological and explosive devices.

Tactical operations center hardware and software integration

The budget request included $11.2 million in PE 63305A, for Army missile defense systems integration, but included no funding for future tactical operations center (TOC) hardware and software integration.

The committee recognizes that the Department of Defense must continue to build upon ongoing activities to fully integrate space capabilities into airborne, land, and maritime assets to form a full force integrated battle management, communications, and surveillance architecture to synchronize planning and control of assets within the joint battlefield and provide situational awareness of the battlefield for the warfighters. The committee recommends an increase of $5.0 million in PE 63305A for TOC hardware and software activities to integrate space, air, ground, and maritime situational awareness for the warfighter.

Thermal protection system technology risk reduction

The budget request included $11.2 million in PE 63305A for Army missile defense systems integration, but included no funding for thermal protection system (TPS) risk reduction efforts.

Thermal protection is a key enabling technology to permit hypersonic vehicles to travel great distances within the earth's atmosphere without overheating due to friction. Solving the TPS problem is essential for the development of hypersonic flight in support of many mission areas, including prompt global strike.

The committee recommends an increase of $3.0 million in PE 63305A for developmental, test, and manufacturing design risk reduction efforts in the area of thermal protection.

Translation devices

The budget request included $64.6 million in PE 63772A, for advanced tactical computer science and sensor technology and $90.0 million in PE 62236N, for warfighter sustainment applied research. The committee notes that the Army and Marine Corps are currently considering a variety of approaches to the development of handheld translation technologies. This technology has been successfully used in Iraq and Afghanistan by assisting soldiers, marines, and special operators in their daily interactions with native populations. The committee recommends an increase of $3.0 million in PE 63772A for the continued development of more capable, handheld translation technology and $2.0 million in PE 62236N for the development of translation devices that can support bi-directional translations of speech, text, and other information in multiple languages.

Advanced Hypersonic Weapon development

The budget request included $11.8 million in PE 63308A, for Army Missile Defense Systems Integration, but included no funding for Advanced Hypersonic Weapon (AHW) risk reduction efforts.

The committee notes that the Department of Defense Quadrennial Defense Review Report of 2006 highlights the need for `prompt and high-volume global strike' capability to deter aggression and provide a broader range of conventional options to the President, if deterrence fails. In March 2006, the Commander, U.S. Strategic Command (USSTRATCOM), testified before the Subcommittee on Strategic Forces of the Committee on Armed Services that in situations where U.S. general purpose forces are not in a position to respond rapidly to dangerous threats to the United States, the President may require USSTRATCOM to interdict such fleeting targets at global range. The Department of Defense is conducting an analysis of alternatives for prompt global strike capabilities in the near, mid, and long term. One alternative option for prompt, conventional long-range strike is to employ advanced technologies such as hypersonic vehicles that can travel thousands of miles in the upper atmosphere in under 60 minutes.

The committee recommends an increase of $20.0 million in PE 63308A to support a flight test demonstration program for the AHW. The committee is aware that hypersonic research is being conducted throughout the Department for efforts that go beyond prompt global strike. Elsewhere in this report, the committee recommends that the Secretary of Defense establish a joint technology office to coordinate, integrate, and manage hypersonic research. Activities related to the development of the AHW should be consistent with the approach adopted by this new joint technology office for hypersonic development so that the AHW could be considered by the Department as a candidate for a joint technology capability demonstration.

Architecture Analysis Program

The budget request included $143.4 million in PE 63327A, for Air and missile defense system engineering, but included no funding for the Air, Space, and Missile Defense Architecture Analysis Program (A3P).

A3P is a modeling and simulation effort to assist in the systems analysis of air, space, and missile defense capabilities to provide an effective defense against cruise missiles, unmanned aerial vehicles, aircraft, rockets, artillery, and ballistic missiles of all ranges. The committee recognizes that these simulation capabilities are necessary to support air, space, and missile defense efforts across a broad spectrum of military operations from major theater wars to homeland security.

The committee recommends an increase of $3.0 million in PE 63327A for A3P to support air, space, and missile defense modeling and simulation.

Environmental quality technology demonstration and validation at the Defense Ammunition Center

The budget request included $5.2 million in PE 63779A for environmental quality technology demonstration and validation, but included no funding for the Defense Ammunition Center to provide dedicated oversight for critical environmental, explosives safety, and munitions surveillance research and development for the Department of Defense's conventional ammunition stocks, tactical missiles, and explosives. The committee notes that the Department has a stockpile of over 3.5 million tons of conventional ammunition, over one million tactical missiles, and strategic missiles with over 100 million pounds of energetic materials. The committee believes a focused program to identify challenges in managing this rapidly aging stockpile and respond to emerging explosives is needed.

The committee recommends an increase of $5.0 million in PE 63779A to establish a separate project for the Defense Ammunition Center to provide the Department with dedicated oversight and response for the stockpile of conventional ammunition, tactical missiles, and explosives to support readiness.

Counter rocket, artillery, and mortar

The budget request included $21.8 million in PE 64741A, for the Air Defense Command, Control and Intelligence--engineering development, but no funding for the Counter Rocket, Artillery, and Mortar (C-RAM) system. The committee understands that the Commander, Multinational Forces-Iraq, submitted an operational needs statement for the C-RAM system in June 2005. Congress approved $13.1 million in the Defense Appropriations Act for Fiscal Year 2006 for C-RAM development. The committee believes the C-RAM development should be accelerated to support MNF-I requirements. Additional funding for C-RAM development has been included on the Chief of Staff of the Army's fiscal year 2007 unfunded priority list. The committee recommends an increase of $25.5 million in PE 64741A for C-RAM development, for a total authorization of $47.3 million.

Unmanned aerial vehicle anti-icing technology

The budget request included $10.9 million in PE 64258A, for target systems development. The Department of Defense consistently lists all weather capability as a priority for operation of unmanned systems. The committee recommends an increase of $2.0 million in PE 64258A for icing and wind tunnel testing of the prototype electro-expulsive ice protection system.

RAND Arroyo Center

The budget request included $20.2 million in PE 65103A, for the RAND Arroyo Center. The committee notes that RAND studies and analyses have supported Army missions by conducting analytic research on major policy concerns, attempting to assist the Army in improving effectiveness and efficiency, and providing short-term assistance on urgent problems. The committee recommends an increase of $2.5 million in PE 65103A to sustain RAND analytical support to the Army.

Automated communications support

The budget request included $21.6 million in PE 65326A, for Concept Experimentation Program, but included no funding for further development of an automated communications recognition and translation capability.

Intelligence support to time-sensitive targeting is a critical component in the global war on terrorism. The Department of Defense requires the capability to quickly and efficiently process volumes of foreign language communications audio traffic and then exploit the intelligence content. The ability to separate and prioritize audio messages is crucial. Currently, it is neither economically feasible nor possible to recruit, train, and field sufficient linguists to meet this demand. The development of an automated system to assist in the exploitation of the intelligence value of foreign language audio messages could mitigate this shortfall in the war against terrorism, as well as more conventional threats, and threats to uniformed personnel. This capability could also have applicablity to the Department of Homeland Defense and law enforcement agencies.

The committee recommends an increase of $3.2 million in PE 65326A for the development of the capability to search, translate, and mine foreign language audio messages.

Biometric identification device

The budget included $21.6 million in PE 65326A, for Concept Experimentation Program, but included no funding for further development of a rugged, portable, and easy-to-operate 10-print fingerprint scanner device.

The requirement for biometric tools at the tactical level to support the war on terrorism is increasing.

Such a device would have applicability across the Department of Defense. The committee recommends an increase of $4.0 million in PE 65326A for the development of a biometric identification device for use with tactical forces.

Portable iris enrollment and recognition device

The budget request included $3.2 million in PE 33028A, for security and intelligence activities, but included no funding for the continued research of the portable iris enrollment and recognition (PIER) technology development.

The committee notes the need for the continued enhancement of biometric capabilities and the development of items such as the PIER device. The committee recommends an increase of $3.5 million in PE 33028A for the continued development of a multi-modal portable biometric platform consistent with the development and integration goals of the Department of Defense for biometric identification systems.

Biometrics technology

The budget request included $23.8 million in PE 33140A, for the Information Systems Security Program, including $14.5 million for Army biometrics research and development. The committee believes that deployment of biometrics technologies is critical for successful operations in Iraq and Afghanistan, as well as in support of homeland defense missions. The committee recommends an increase of $3.0 million in PE 33140A for the continued development of retinal/iris multimodal biometrics technology which is consistent with the development, deployment, and integration goals of the Department of Defense for biometric identification systems.

Army manufacturing technology

The budget request included $68.1 million in PE 78045A, for Army end-item industrial preparedness. The committee notes that the recent Defense Science Board study on the manufacturing technology program recommended that the Department of Defense increase investment in the program to a level equal to 1 percent of the total Research, Development, Test, and Evaluation budget. Consistent with this recommendation, the committee is authorizing a number of funding increases to manufacturing technology programs of the services and the Defense Logistics Agency. The committee recommends an increase of $8.5 million in PE 78045A, including $3.0 million for manufacturing systems demonstrations to develop efficient, agile manufacturing cells to better support warfighter needs for critical machined parts; $2.0 million for large structure titanium machining processes; and $3.5 million for super pulse laser system development.

The committee also notes that the recent report by the National Research Council, entitled `Linkages: Manufacturing Trends in Electronic Interconnection Technology,' found that the Department of Defense will have increasing difficulty in acquiring the printed circuit boards it requires to produce future weapons systems and to sustain legacy systems. The Council recommended that the Department expand its role in fostering new printed circuit board design and manufacturing technology. The committee recommends an increase of $3.0 million in PE 78045A for the development of novel packaging and interconnect technologies to advance printed circuit board technology.

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Navy university research

The budget request included $73.3 million in PE 61103N, for university research initiatives and $366.6 million in PE 61153N, for defense research sciences. Navy basic research programs explore innovation and discovery in areas that pose challenges in the maritime battlefield such as corrosion; fire-retardant, impact resistant materials and structures; neuroscience and biorobotics; electronic sensors and energy sciences; and information assurance. The committee recommends an increase of $5.5 million in PE 61103N for university basic defense research, including $1.5 million for multifunctional materials for Navy structures; $2.0 million for neurotechnology research; and $2.0 million for smart, remote sensing systems using nanotechnology. The committee also recommends an increase of $2.0 million in PE 61153N, for software reliability.

Thermal management systems

The budget request included $84.9 million in PE 62114N, for applied research on power projection technologies. The committee recommends an increase of $2.0 million in PE 62114N for the development of new thermal management systems with the capability to cool high power density electronics. Electronics in future military systems with highly, complex microelectronics, high processing speeds, and higher power operation require advanced thermal management systems to optimize their performance. The development of thermal management technologies are highlighted in a number of Defense Technology Objectives, including those related to the development of advanced radio frequency electronics technologies to support naval missions such as surveillance, weapons control, electronic warfare, communications, and identification of `friend or foe.'

Force protection applied research

The budget request included $123.4 million in PE 62123N, for force protection applied research. Naval warfighting capabilities supported by this program include maintaining platform and force mobility through stealth, area and self-defense, structural toughness, and reconfigurability. The committee recommends an increase of $18.0 million in PE 62123N for targeted development and transition activities, including $2.0 million for advanced simulation tools for aircraft structures; $2.5 million for development of a real-time wideband acoustic processor for fiber sensors; $5.0 million for final outfitting and completion of the Mark V technology demonstrator; $2.5 million for nano-magnetic materials for propulsion and energy systems; $4.0 million for thermal design, system qualification, and power integration on the small watercraft propulsion demonstrator; and $2.0 million for the undersea perimeter security integrated defense environment.

High power, lightweight battery research

The budget request included $37.7 million in PE 62131M, for Marine Corps landing force technology. Growing energy and power needs of the dismounted warrior must be met with advanced, reliable, high-power, batteries that are significantly lighter and smaller. The committee notes that the Department of Defense's research enterprise explores various approaches to solving energy and power challenges for the dismounted soldier, including solid oxide fuel cell systems pursued by Special Operations Command.

The committee recommends an increase of $1.9 million in PE 62131M for prototype research on a high power, small, lightweight zinc-air battery specifically to scale down larger batteries for operation of smaller devices without losing power density.

Human factors and organizational design

The budget request included $68.4 million in PE 62235N, for common picture applied research. The committee recommends a decrease of $2.0 million in PE 62235N for programs in social science based-computational models and human performance research that are duplicative of efforts in other services and agencies.

Sea basing technologies

The budget request included $90.0 million in PE 62236N, for applied research on warfighter sustainment technologies. The committee recommends a decrease of $7.0 million in PE 62236N to limit the number of demonstrators developed under the sea basing concept until it is better defined and has established transition paths to acquisition programs.

Information sharing technologies

The budget request included $76.8 million in PE 63114N, for power projection advanced technology. Recent operations in Iraq and Afghanistan have highlighted the importance of time critical strikes on high-value mobile targets in complex environments. The committee recommends an increase of $2.0 million in PE 63114N for the development of communications and information processing technologies that assist in the surveillance, targeting, and engagement of mobile targets.

Power projection advanced technology

The budget request included $76.8 million in PE 63114N, for power projection advanced technology research programs. The committee recommends a decrease of $10.0 million in PE 63114N to limit growth of programs with no defined transition pathway to Navy acquisition programs. The committee recommends limiting funding of hypersonics programs until completion and implementation of a Department-wide strategy for hypersonics technology development and demonstration.

Force protection advanced technology

The budget request included $61.5 million in PE 63123N for force protection advanced technology. This program addresses applied research associated with providing force protection capability for all naval platforms.

The budget request included no funding for development of a transportable manufacturing and repair cell. This cell would reduce operating and support costs, while maintaining equipment readiness in theater. The cell would be deployable by ships and large ground vehicles, and would provide precision, on-demand manufacturing of critical parts for the Navy and Marine Corps. The committee recommends an increase of $5.0 million in PE 63123N for the development of a transportable manufacturing and repair cell.

The budget request included no funding for completion of advanced ship service fuel cell (SSFC) power plant design. The Navy has invested over $30.0 million in design and development of advanced prototype fuel cell demonstration systems for shipboard application. Additional funding will enable performance characterization, including endurance and latent defect testing at the DD(X) land-based engineering site to demonstrate compatibility with DD(X) integrated power system architecture. The committee recommends an increase of $4.0 million in PE 63123N for the continued development of a SSFC.

The budget included no funding for the continued development of wide band gap semiconductor substrate materials. These materials offer capability for higher power and higher frequency operation in high temperature environments across a broad spectrum of applications. The committee recommends an increase of $8.0 million in PE 63123N for the continued development of wide band gap semiconductor substrate material.

The committee recommends a total authorization of $78.5 million in PE 63123N for force protection advanced technology.

Common picture advanced technology

The budget request included $61.7 million in PE 63235N, for common picture advanced technology. Processing large quantities of information from a variety of sensors and assets into actionable information requires assistance and some degree of automation. The committee recommends an increase of $5.0 million in PE 63235N to promote transition of research in processing of sensor data, including $3.0 million for near-term development of an improved shipboard command information center; and $2.0 million for the rail sensor testbed.

Warfighter sustainment technology

The budget request included $82.0 million in PE 63236N for the development of warfighter sustainment advanced technology, but included no funding for advanced composites material research, the Defense Systems Modernization and Sustainment Initiative, or the Vertical Lift Center of Excellence.

The Marine Corps has a need for a new generation of armored, light-weight, long-life ground vehicles for use in a variety of adverse conditions. The Advanced Composite Materials Research project would apply the structural benefits of composites, including bio-mimetics, to develop increased survivability, improved safety design, and self-diagnostic structural features for military ground vehicles. The committee recommends an increase of $5.0 million in PE 63236N for advanced composite materials research.

The Defense Systems Modernization and Sustainment Initiative is a research program focused on improving the modernization, readiness, and sustainment of defense systems by developing processes and tools to track the status and future health of defense systems; to detect, diagnose and repair material aging failures; and to provide decision systems for use in determining when and how to upgrade these systems. The committee recommends an increase of $8.0 million for the Defense Systems Modernization and Sustainment Initiative.

The Vertical Lift Center of Excellence at Naval Aviation Depot, Cherry Point, provides for science and technology insertion into a dedicated activity to identify, demonstrate, validate, and assist in implementing improved maintenance products, procedures, and processes into depot operations. The result of these efforts is increased readiness by improving maintenance operations and decreasing maintenance cycle times for rotary wing aircraft. The committee recommends an increase of $4.0 million for the Vertical Lift Center of Excellence.

The committee recommends a total authorization of $99.0 million in PE 63236N.

APY-6 real-time precision targeting radar

The budget request included $45.3 million in PE 63271N, for radio frequency systems advanced technology. The committee recommends an increase of $2.0 million in PE 63271N for continued demonstrations and development of the APY, real-time precision targeting radar to support unmanned air vehicle mission requirements.

Marine Corps advanced technology

The budget request included $59.2 million in PE 63640M, for Marine Corps advanced technology demonstrations. The committee recognizes the work and dedication of the Office of Naval Research and the Marine Corps Warfighting Lab in meeting the short and long term needs of expeditionary force, particularly in the areas of body armor; information, surveillance, and reconnaissance; and chemical, biological, and radiological detection and warning. The committee recommends an increase of $15.0 million in PE 63640M for Marine Corps technology demonstrations, including $12.0 million for the core advanced technology program to focus on the areas noted above; and $3.0 million for expeditionary water purification.

The committee further recommends an increase of $6.0 million in PE 63640M for design and development of advanced combat tactical vehicle prototypes that optimize system mobility, survivability, and lethality.

Visual integrated bridge system

The budget request included $21.3 million in PE 63782N, for mine and expeditionary warfare advanced development. Navy evaluations of the Augmented Reality Visualization of the Common Operational Picture (ARVCOP) on numerous platforms demonstrated utility of the system for improved safety, navigation, and battlespace awareness. The committee recommends an increase of $2.0 million in PE 63782N to promote transition of the system to the fleet.

Electro-optic Passive ASW System

The budget request included $9.9 million in PE 63254N for the Electro-optic Passive ASW System (EPAS). EPAS is a 15-inch turret-based suite of electro-optic and magnetic anomaly detection sensors with the potential to provide a 24-hour air ASW capability for fixed wing, helicopter, and unmanned aircraft system ASW platforms. Additional EPAS turret systems and real-time detection, classification, and false alarm mitigation capabilities are required for realistic system operational assessment in a multi-platform fleet environment before transitioning to a follow-on acquisition program. The committee recommends an increase of $6.7 million in PE 63254N for development of the Electro-optic Passive ASW System.

Surface Navy Integrated Undersea Tactical Technology

The budget request included $130.3 million in PE 63502N for surface and shallow water mine countermeasures, but included no funding for the Surface Navy Integrated Undersea Tactical Technology (SNIUTT) program. SNIUTT would provide surface ship mine countermeasures sonar operators with the simulated training necessary to recognize mine-like contacts. SNIUTT would expand the mine recognition training technologies and scenario generation capabilities successfully demonstrated in airborne mine countermeasure to all Navy mine-hunting sonars. The committee recommends an increase of $2.0 million in PE 63502N for SNIUTT.

Shipboard system component development

The budget request included $14.1 million in PE 63513N for shipboard system component development, including $7.1 million for the development of integrated power systems, but included no funding for the high temperature superconductor alternating current (HTS-AC) synchronous marine propulsion motor development, Smart Valve development, or for gas turbine electric start system technology upgrade.

A 36.5 megawatt prototype HTS-AC synchronous propulsion motor will be delivered to the Navy in fiscal year 2006. Design of a fully militarized motor, specifically for DD(X), will commence in 2006. Additional funding is required in fiscal year 2007 to support full power testing of the prototype motor, and to complete the preliminary design for militarization of the HTS-AC motor for potential application to a future surface combatant. The committee recommends an increase of $6.0 million in PE 63513N for the continued development of the HTS-AC synchronous marine propulsion motor.

Smart Valve is an advancement in control system technology applied to the design for bleed air regulating, control and relief valves on existing and future gas turbine naval vessels. Existing bleed air valves for gas turbine ships are subject to high maintenance costs and reliability concerns. Smart Valve provides an advanced linear electro-mechanical actuator design for accurate, quick response; and includes self-diagnostic capability for preventive, condition-based maintenance. Increased service life and improved functional design with Smart Valves result in reduced maintenance and reduced life cycle cost. The committee recommends an increase of $2.5 million in PE 63513N to complete development of a prototype Smart Valve.

The gas turbine electric start system technology upgrade would expand the application of electric starters to naval gas turbine engines for potential use on the Navy's CG-47 class, DDG-51 class, and future naval ships. Electric start technology would greatly simplify gas turbine start system design, resulting in increased reliability and reduced procurement and support costs. The committee recommends an increase of $5.5 million in PE 63513N to develop and qualify an electric start system for naval gas turbine engines.

The committee recommends a total authorization of $28.1 million in PE 63513N for shipboard system component development.

Marine Corps ground combat and supporting arms systems

The budget request included $503,000 in PE 63635M, for the development of Marine Corps ground combat and supporting arms systems, but no funding for moldable fabric armor or the Unit Operations Laboratory.

Moldable fabric armor is made from a highly engineered polypropylene tape yarn which exhibits high impact resistence at a very light weight. The committee believes that moldable fabric armor has the potential to provide an alternative to the current integrated body armor worn by Marines and soldiers, who often carry almost 100 pounds of equipment when deployed in combat situations.

Nonlethal weapon development initiatives aim to minimize collateral damage to infrastructure and personnel, while neutralizing facilities and the threats that might be posed to these facilities and the personnel that occupy them. An urban operations laboratory will provide assessment and analysis of the affects of non-lethal technologies to ensure minimum environmental and collateral damage when used in urban activities. The committee believes that the Marine Corps must have a broad range of responses to contain and manage emerging threats before, during, and after conflict, and with minimum collateral damage.

The committee recommends an increase of $2.0 million for moldable fabric armor development and $2.0 million for an urban operations laboratory in PE 62635M, for a total authorization of $4.5 million.

Project Athena

The budget request included $2.5 million in PE 63889N, for Project Athena. Project Athena is a situational awareness system that provides a common operational picture (COP) to national, regional, and local users. It fuses real-time downlinks from surveillance sensors, multiple data bases, and other sources of intelligence reporting into a COP that can be tailored to multiple security levels, including unclassified. Project Athena is capable of providing a COP to the Department of Defense, the Department of Homeland Security, the U.S. Coast Guard, first responders, and allied nations in a more timely and simultaneous manner. The Department of Defense Counternarcotics Technology Program Office is responsible for the project and has successfully tested Project Athena in maritime tracking in the United States. In fiscal year 2006, Project Athena is being used at the Joint Interagency Task Force South in Florida and jointly with the Colombian Navy.

The committee recommends an increase of $6.5 million to PE 63889N for the further integration of databases and sensors, and additional operational tests with interagency, first responders, and allied nations.

Directed energy and electric weapon systems

The budget request included $41.7 million funding in PE 61153N, PE 62114N, and PE 63114N, for directed energy technology and continued development of an electromagnetic rail gun (EMRG). Progress with these developments, in conjunction with the Navy's programmed introduction of ship integrated power systems, has established a foundation for fielding shipboard directed energy and electric weapon systems.

The Chief of Naval Operations has noted that the EMRG would provide an extremely long range and persistent volume of fire, significantly improving naval gunfire support for forces ashore. In view of research by other, non-allied nations involving similar technology, it is vital that the Navy maintains its edge in this critical area. The committee is aware that the Navy has moved forward with the establishment of the Directed Energy Technology Office and the Directed Energy Weapons Program Office to manage directed energy weapons research, development, integration, and acquisition for the Navy. The committee agrees with the Navy's increased emphasis on this critical future capability, including the construction of the Electromagnetic Research and Engineering Facility and the new 64 megajoule railgun facility at the Naval Surface Warfare Center (NSWC), Dahlgren. The committee recommends an increase of $50.0 million in PE 63925N to accelerate development of directed energy and electric weapon systems, including:

      (1) an increase of $13.4 million to outfit the Electromagnetic Research and Engineering Facility to conduct high lethality laser and high power Radio Frequency (RF)/microwave research;

      (2) an increase of $8.6 million for electromagnetic railgun research in advanced material development for bore life engineering, projectile design, and power system requirements;

      (3) an increase of $15.0 million for RF energy application to counter Improvised Explosive Devices, including Terahertz system development, solid state heat capacity laser analysis and test, and high power microwave technology application; and

      (4) an increase of $13.0 million for high energy laser development in conjunction with ship self-protection and laser guided energy development and application to lethal and non-lethal ship weapon systems.

Towed array improvements

The budget request included $94.8 million in PE 64503N for Submarine Systems Equipment Development, including $5.7 million for affordable towed array technology development. Twin line, thinline towed array capability is a key technology for long-range passive detection against quiet diesel submarines in the littorals. Leveraging current TB-33 array baseline technology development by adding twin line, thinline capability would enhance performance and affordability. Advance processor technologies are required to solve the need for greater processing capability, while decreasing internal heat load on the submarine. Array/array handling system design improvements are necessary to increase component reliability. Additional funding to accelerate investment in twin line, thinline towed array capability has been included on the Chief of Naval Operations' unfunded priorities list. The committee recommends an increase of $10.0 million in PE 64503N for the development of affordable towed array construction, improved towed array/array handler reliability, and for the development and testing of advance processing technologies, including the field programmable gate arrays for application to the twin line, thinline towed array system.

Submarine design

The budget request included $169.6 million in PE 64558N for the continuing development of the Virginia-class submarine, and $140.4 million in PE 63561N for advanced submarine systems development. The design and development efforts in these programs are to evaluate a broad range of system and technology alternatives to directly support and enhance the mission capability of the Virginia-class and future submarine concepts.

The budget request included $20.0 million for affordability design, but included no funding for concept formulation for the next generation strategic submarine platform. Similarly, the budget request included no funding to continue development of a family of systems and capabilities, the focus of which is to spirally incorporate capabilities needed to enhance undersea superiority of the Virginia-class. The committee believes that continued investment in these capabilities is needed to meet the future threat. However, the most important measure to increase operational capability of the Virginia-class is to increase the program's building rate as soon as practical. The committee is concerned that the Navy's proposed shipbuilding program is insufficient to meet the submarine force structure requirements outlined in the Secretary of the Navy's report on the long-range plan for the construction of naval vessels. The committee urges the Navy to mitigate this shortfall by moving toward a production goal of two submarines per year beginning in 2010. The committee is aware that the Chief of Naval Operations has established an affordability threshhold as a criterion for increasing the submarine procurement rate, and recognizes that initiatives to add critical capabilities to the Virginia-class need to be accomplished in a manner that supports the established affordability objectives.

The committee recommends an increase of $65.0 million in PE 64558N to support cost reduction initiatives for the Virginia-class design and construction. This additional funding is to include the design and development, leading to affordable integration of the following capabilities into the Virginia-class:

      (1) Multi-Mission Module;

      (2) Large Aperture Bow Array;

      (3) spiral Alpha for the Virginia-class Warfare Management System;

      (4) Common Open Architecture Weapon System Components;

      (5) Submarine Network-centric Capability Technology Insertion; and

      (6) Submarine Command & Control Systems Advanced Technology Insertion.

The committee is further concerned that, for the first time in more than 50 years, the United States is not actively engaged in the design of a new class of nuclear submarine. The current Navy schedule to initiate the next generation submarine platform design causes a significant gap in the design and engineering industrial workload such that the industrial base will not likely be able to preserve the critical skills and capabilities needed for this effort. Testimony by industry and Navy experts before the Subcommittee on Seapower of the Committee on Armed Services emphasized the criticality of maintaining a viable submarine design industrial base to avoid the severe delays and cost overruns experienced by other navies, whose design base atrophied during lengthy periods between new design efforts. The committee recommends an increase of $10.0 million in PE 63561N to initiate concept formulation on the next generation submarine platform, including alternate design approaches, integration of future weapons systems, and mission capabilities.

Ship self-defense

The budget request included $10.1 million in PE 64755N for ship self-defense, but included no funding for continued development of the autonomous unmanned surface vehicle (AUSV). The AUSV is being developed as a concept demonstrator for hydrographic survey, and for potential antiterrorism force protection missions in defense of harbors and coastal facilities. The committee recommends an increase of $4.0 million in PE 64755N for the continued development of the AUSV.

NULKA anti-ship missile decoy development

The budget request included $11.5 million in PE 64757N for development of soft kill technologies for ship self-defense, and $1.0 million for the continuing development of the NULKA decoy. NULKA is an offboard, active decoy designed to counter a wide variety of present and future radar-guided anti-ship missiles. Continued development of NULKA is necessary to counter anti-ship missiles, which may migrate to other frequency bands or use dual mode seekers. The committee recommends an increase of $6.0 million in PE 64757N for the continued development of the NULKA decoy.

Chiropractic treatment outcomes study

The budget request included $7.7 million in PE 64771N, for medical development. Section 702 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) directed the Department of Defense to develop a plan to provide chiropractic health care services and benefits to active-duty personnel as a permanent part of the Defense Health Program. The committee directs the Secretary of the Navy to commission a study by a federally-funded research and development center to assess progress of the program and the efficacy and application of chiropractic health care services in reducing musculoskeletal disabilities among active-duty personnel. The study should include: an evaluation of the effectiveness of the care provided to military personnel including pilots and infantrymen; development of metrics for measurement of appropriate chiropractic treatment outcomes; and identification of any additional requirements for research. The committee recommends an increase of $500,000 in PE 64771N to conduct the required study. The results of the study should be reviewed by the Assistant Secretary of Defense for Health Affairs, and submitted to the congressional defense committees with any comments not later than 1 year after the date of enactment of this Act.

Navy medical research

The budget request included $7.7 million in PE 64771N, for medical development. Navy medical research programs focus on vaccines and treatments specific to the needs of the sailor and support efforts to address the threat posed by biological weapons and naturally occurring illnesses in areas of military operation. Enhanced vaccine distribution techniques and more efficient delivery of treatments would further reduce logistical and personnel requirements, while increasing protection. The committee recommends an increase of $2.0 million in PE 64771N for non-invasive vectored vaccine research to produce a consistent, highly immunogenic, and easily manufactured and administered vaccine.

F136 Interchangeable Engine

The budget request included $1,999.0 million in PE 64800F and $2,031.0 million in PE 64800N for the continued development of the Joint Strike Fighter, but included no funding for the development of the F136 interchangeable engine. The committee believes supporting competitive propulsion systems would help reduce operational risk and lead to higher confidence of achieving more affordable life cycle costs. The committee expects that the Secretary of Defense, along with the Department of the Navy and the Department of the Air Force, will remain committed to the development and sustainment of competitive propulsion systems for the Joint Strike Fighter.

The committee recommends an increase of $200.4 million in PE 64800F and an increase of $200.4 million in PE 64800N for the continued development of the F136 interchangeable engine.

Marine Corps communications systems

The budget request included $218.5 million in PE 26313M, for the development of Marine Corps communications systems, including $8.6 million for AN/TPS-59(V)3 Radar System sustainment but no funding for the battlefield management system (BMS) or counter remote controlled improvised explosives device (RCIED) electronic warfare countermeasure systems.

The AN/TPS-59(V)3 Radar System provides the only long-range, three dimensional surveillance radar in the Marine Corps inventory. Since September 2001, TPS-59 radars have been deployed in support of Operation Iraqi Freedom and Operation Enduring Freedom. The committee believes that capability improvement efforts need to be undertaken to accelerate the development of the Low Earth Orbit Satellite (LEOS) capability. Additional funding for LEOS development has been included on the Commandant of the Marine Corps' fiscal year 2007 unfunded priority list.

The committee understands that the Marine Corps' tank and track vehicles do not have an on-board situational awareness capability. The BMS is an off-the-shelf situational awareness capability that can be integrated into the Joint Battle Command Platform. Additional funding for the development of software interfaces for the BMS has been included on the Commandant of the Marine Corps' fiscal year 2007 unfunded priority list.

The committee supports initiatives that address the development of remote controlled improvised explosives device (RCIED) electronic warfare countermeasures. The committee understands that additional funding is required to develop and test the next generation of High Powered Vehicle Mounted Countermeasure Systems, single antenna development and testing, as well as, platform integration and testing. Additional funding for the development RCIED countermeasures has been included on the Commandant of the Marine Corps's fiscal year 2007 unfunded priority list.

The committee recommends an increase of $5.0 for LEOS development, $2.0 million for BMS interface software development, and $25.0 million for counter-RCIED development in PE 26313M, for a total authorization of $250.5 million.

Polymer-based improvised explosive device detection tools

The budget request included $47.6 million in PE 26623M, for the development of Marine Corps ground combat and supporting arms systems, but no funding for amplifying fluorescent polymer-based improvised explosive device detection tools (FIDO XT) or the Sense and Respond Support System.

The committee understands that the FIDO XT has been under development over the last three years and has made significant progress in the development of a system which mimics the action of dogs trained to detect explosive materials. This technology has proven to be successful in laboratory and field environments but requires additional work for integration into robotic vehicles.

The committee understands that the Marine Corps is entering the third year of a four-year study to determine whether ultrasonic consolidation technology can be embedded in a variety of components of the Light Armored Vehicle (LAV) as part of a Sense and Respond system for vehicle health monitoring.

The committee recommends an increase of $4.0 million for FIDO XT development and integration and $4.5 million for the LAV Sense and Respond System, for a total authorization of $56.1 million in PE 26623M.

Expeditionary assault bridge

The budget request included $16.3 million in PE 26624M, for the development of Marine Corps service support equipment, including $750,000 for the development of the Expeditionary Assault Bridge. Lessons learned from Operation Iraqi Freedom (OIF) proved the current Armored Vehicle Launched Bridge (AVLB) system, based on a M-60 tank chassis, cannot keep pace with maneuver forces and is difficult to maintain, with further degradation anticipated due to a shortage of M-60 spare parts. The committee believes that development of the EAB, based on a modern M-1 chassis, should be accelerated to provide Marine forces with a dependable assault gap-crossing capability that is able to keep pace with current forces. Additional funding for EAB development has been included on the Commandant of the Marine Corps' fiscal year 2007 unfunded priority list. The committee recommends an increase of $9.0 million in PE 26624M for EAB development, for a total authorization of $25.3 million.

Environmental intelligence for riverine operations

The budget request included funding in PE 31303N, for Maritime Intelligence to support continued analysis, tool kit development, and the environmental intelligence necessary to support naval riverine capabilities.

The 2006 Quadrennial Defense Review Report identified a requirement to provide a Navy riverine capability for river patrol, interdiction, and tactical troop movement on inland waterways. The demand for intelligence on inland waterways in the `long war' against terrorists worldwide is increasing. The committee is aware that Naval Oceanographic Office and Naval Research Lab at Stennis Space Center, Mississippi have a proven capability in the field of environmental intelligence.

The committee recommends an increase of $4.5 million in PE 31303N, Maritime Intelligence, to improve and broaden the capability to fuse, store, and share meterological, oceanographic, and environmental intelligence in support of special operations, counterproliferation, counterterrorism, force protection, drug interdiction, and expeditionary operations in coastal and riverine areas.

Vessel integrity system

The committee recommends an increase of $1.0 million in PE 31303N, Maritime Intelligence, for the acquisition of a vessel integrity system (VIS) to complement and enhance current capabilities to monitor and track ocean going vessels worldwide, provide cargo information, provide data on cargo and port history, and estimate future tracks and possible port calls. The committee believes that VIS could enhance security of U.S. maritime borders and increase the capability of other U.S. maritime intelligence programs.

National Shipbuilding Research Program--Advanced Shipbuilding Enterprise

The budget request included no funding in PE 78730N for maritime technology. The National Shipbuilding Research Program--Advanced Shipbuilding Enterprise (NSRP-ASE) is a collaborative effort between the Navy and industry, which has yielded new processes and techniques that reduce the cost of building and repairing ships. Annual Navy funding, which is matched and exceeded by industry investment, has achieved savings and cost avoidance for the Navy, a positive return on investment, and a high research-to-implementation transition rate. The committee believes that continuation of the NSRP-ASE provides a vital contribution towards achieving the overarching objective of improving the affordability of naval warship construction and maintaining a healthy, innovative shipbuilding industrial base. The committee recommends an increase of $10.0 million in PE 78730N to support NSRP-ASE efforts, including:

      (1) establishing a comprehensive national program for development and training of a skilled shipbuilding production and engineering workforce;

      (2) establishing a concept for a national supply chain that will enable leveraging buying power across product lines in an effort to reduce the high cost of material in ship construction;

      (3) exploring secondary and commercial markets for private shipbuilders to broaden the business base and share the overhead applied to naval shipbuilding; and

      (4) developing and deploying an industry-wide architecture for computer interoperability.

Detection and recovery of unexploded ordnance, Browns Island, Camp Lejeune, North Carolina

The budget request included $25.3 million in PE 65873M for Marine Corps Program-wide Support, but included no funding for the detection and recovery of unexploded ordnance at Browns Island, Camp Lejeune, North Carolina. The committee notes that developing and testing technologies that focus on wide area detection and discrimination of unexploded ordnance followed by precise removal efforts from environmentally-sensitive areas would provide benefits to long-term unexploded ordnance removal efforts throughout the Department of Defense. The committee believes that effective detection and discrimination of unexploded ordnance over a wide area would help identify where recovery efforts should be focused and would significantly reduce the cost of unexploded ordnance removal and environmental remediation.

The committee recommends an increase of $5.0 million in PE 65873M to complete the recovery of unexploded ordnance begun in fiscal year 2006 in the vicinity of Browns Island, a former bombing range at Camp Lejeune.

BUDGET ITEMS--AIR FORCE

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Air Force basic research

The budget request included $250.2 million in PE 61102F, for defense research sciences and $107.6 million in PE 61103F, for university research initiatives. Air Force fundamental and university research focuses on defense-related technical challenges in a wide range of scientific and engineering disciplines are important to maintaining U.S. military technology superiority. The committee recommends an increase of $2.0 million in PE 61102F for improved measurements and simulation of hypersonic air flows.

As noted elsewhere in this report, the committee is concerned with deficiencies in cyber and national security information assurance capabilities. The committee recommends an increase of $5.5 million in PE 61103F for information assurance-focused research, including $2.0 million for high assurance software engineering; $1.5 million for secure grid research; and $2.0 million for secure grids for network-centric operations.

Air Force materials research

The budget request included $111.1 million in PE 62102F, for materials research. The committee recommends an increase of $6.5 million in PE 62102F for research and development on materials, composites, and structural designs to protect personnel and equipment from threats such as explosives and fires, including $3.0 million for blast resistant barrier research; $2.0 million for expansion of advanced materials development and corresponding manufacturing trials; and $1.5 million for development of a domestic source for production of high modulus carbon fibers.

The committee continues to monitor with great interest developments in materials and composites with space and unmanned systems applications. The committee recommends an increase of $2.5 million in PE 62102F for acceleration of research on complex composites and structures for manned and unmanned air vehicles and expects these efforts to meet objectives for joint unmanned systems outlined elsewhere in this report.

Applied aerospace propulsion

The budget request included $170.9 million in PE 62203F, for applied research in aerospace propulsion. The committee notes that hypersonic technologies have the potential to enable the development of new military capabilities in time of a critical strike, as demonstrated by the Air Force X-51 program. The committee recommends an increase of $3.0 million in PE 62203F to pursue alternate propulsion flow path efforts on the X-51 flight test bed.

The committee further recommends an increase of $2.0 million in PE 62203F for high energy laser research to demonstrate a capability to inspect the internal condition of military hardware with significant potential savings in maintenance of critical components.

Space technology

The budget request included $85.6 million in PE 62601F, for space technology. Programs supported under this account focus on improving satellite payload capabilities and developing technologies for protection of U.S. space assets. The committee recommends an increase of $290,000 in PE 62601F for a project to shield rocket payloads with particular emphasis on solving low frequency noise insulation challenges.

MASINT visualization tool

The budget request included $119.3 million in PE 62702F, for command, control, and communications. Measurement and signals intelligence (MASINT) enables identification of obscured and hidden targets, but must be integrated into user friendly information processors and architectures. The committee recommends an increase of $1.5 million in PE 62702F to accelerate development of MASINT visualization tools.

Air Force materials technologies

The budget request included $48.9 million in PE 63112F, for advanced materials for weapon systems. The committee recommends an increase of $3.0 million in PE 63112F to continue the development of inspection techniques to detect fatigue related damage on aircraft components. These techniques can support the extension of aircraft service life and improve operational readiness of assets and are consistent with the Defense Technology Objective of developing systems for nondestructive evaluation for system health management.

The committee recommends an increase of $3.0 million in PE 63112F for research on specialty aerospace metals as part of the Metals Affordability Initiative. This type of research could lead to cheaper and higher performance aerospace metals and alloys, which will contribute significantly to future military capabilities.

Aerospace propulsion and power technology

The budget request included $115.5 million in PE 63216F, for aerospace propulsion and power technology. The committee recommends an increase of $12.5 million in PE 63216F to accelerate development and transition of engine and fuel conversion technologies and to scale battery technology for system level charges and low temperature reliability. Of this amount, the committee recommends $2.0 million for certification of the flexible JP8 military fuel; $6.0 million for the turbine engine supersonic cruise missile; $2.5 million for the versatile affordable advanced turbine engine; and $2.0 million for bipolar wafer-cell, nickel-metal hydride aircraft battery research.

Radically Segmented Launch Vehicle

The budget request included $68.0 million in PE 63401F, for advanced spacecraft technology, but included no funding for the Radically Segmented Launch Vehicle (RSLV).

The RSLV program addresses a broad range of Department of Defense mission requirements for low-cost, routine, and responsive space launch. Currently, the program development and risk reduction for responsive space launch is jointly performed by the Air Force, the National Air and Space Administration, and the Defense Advanced Research Project Agency. The committee is supportive of efforts to acquire an operationally responsive space capability to support the warfighter.

The committee recommends an increase of $4.0 million in PE 63401F to perform engineering development, prototype hardware fabrication, and ground testing of the RSLV.

Thin film amorphous solar arrays

The budget request included $68.0 million in PE 63401F, for Advanced Spacecraft Technology, but included no funding for thin film amorphous solar arrays.

The committee is aware of the need to reduce the cost of satellite launches, which is driven to a large extent by the weight of satellite payloads. The committee believes research on thin film amorphous solar arrays has the potential to produce solar arrays that are significantly less expensive, lighter, and more efficient than current solar arrays.

The committee recommends an increase of $16.0 million in PE 63401F for thin film amorphous solar array research and development.

Massively parallel optical interconnects for battlespace information exchange

The budget request included $35.8 million in PE 63789F, Command, Control, Communications, and Intelligence Advanced Development, but included no funding for development of massively parallel optical interconnects (MPOI) for avionic systems. Recent advances in this technology offer potential to significantly enhance sensor and signals processing of unmanned and manned aircraft. This technology can significantly increase the communications capacity of the air fleet by replacing electronic technology with optical networking technology.

The two major aspects to the on-board networking infrastructure of unmanned air vehicles include: (1) command and control; and (2) payload-related data exchange. The MPOI technology offers a unified and efficient solution to both demands by reducing space, weight, and power consumption, while increasing data rates to the multi-gigabit level.

The committee recommends an increase of $4.8 million in PE 63789F to develop the MPOI primarily for insertion into manned and unmanned aircraft.

Transformational Satellite Communications

The budget request included $867.0 million in PE 63845F, for the Transformational Satellite Communications (TSAT) program. While supporting the TSAT satellite program as a key enabler of the Department of Defense's future communication architecture, Congress has, for the past 4 years, reduced funding for TSAT due to concerns over technological maturity and an overly aggressive development schedule. The committee is therefore gratified that Air Force leadership has restructured the TSAT program to follow an incremental development approach, supported by realistic cost estimates, that may serve to lower program risk and provide the first block of capability to the warfighter as soon as possible. The committee notes that both the Government Accountability Office (GAO) and the independent TSAT Program Review Group have acknowledged that the restructured TSAT program incorporates many of the lessons learned from the troubled history of space acquisition efforts.

While remaining fully supportive of the TSAT program, the committee notes that the budget request for fiscal year 2007 represents a 100 percent increase over last year's appropriated amount of $429.0 million. The GAO does not believe the contractors associated with the space segment of the TSAT program will be able to increase development activities to the requested fiscal year 2007 budget level. The committee therefore recommends a decrease of $70.0 million, or 8 percent, in PE 63845F, for TSAT, due to unexecutable growth in the program budget.

The committee directs the Secretary of the Air Force to submit a report to the congressional defense committees by February 15, 2007, explaining what actions the Air Force has taken to address the remaining concerns of the TSAT Program Review Group and GAO, including: (1) the need to significantly refine requirements so that program content can be matched to budget constraints, and how the Department plans to control requirements to prevent problems associated with `requirements creep'; (2) the need to adequately staff the TSAT program office with experienced space acquisition professionals; (3) the status of refining key performance parameters so they provide specificity and validation metrics; (4) the implications for other programs, such as Space Radar and Future Combat System, of a less capable initial block of TSAT satellites; and (5) the last date by which the fourth Advanced Extremely High Frequency satellite could be put on contract without a production break.

Satellite command and control consolidation

The budget request included $37.7 million in PE 63854F, for Wideband gap filler system, but included no funding for satellite command and control consolidation. The committee is aware that all military satellite communications systems need to be connected into a single consolidated command and control system to provide standardized operations. While the current generation of satellites have transitioned to Command and Control System-Consolidated, the Advanced Extremely High Frequency and Wideband gapfiller satellites have yet to do so. The committee recommends an increase of $8.5 million in PE 63854F to complete the development and integration of the satellite control system with the new satellites to ensure the warfighter receives increased communications capabilities as soon as possible.

Space Radar

The budget request includes $266.4 million in PE 63858F for Space Radar (SR).

SR is a constellation of surveillance and reconnaissance satellites being developed by the Air Force to find, identify, track, and monitor moving or stationary targets under all weather conditions and in darkness. Although the committee supports the development of this important military and intelligence capability, it remains concerned about the wisdom and affordability of starting a new, expensive space acquisition program when so many current space programs remain in difficulty. This concern is compounded by the inability of the Air Force to identify the scope of the SR architecture, or provide a reasonable range of cost estimates for the objective system. The committee is aware that the SR program is undergoing restructure, and may benefit from the incremental, block approach chosen for the Transformational Satellite Communications (TSAT) program. While the committee would welcome such an approach, it does not believe it is prudent to move beyond technology development and concept definition activities until the Air Force provides the committee further definition of the progam.

In the Ronald W. Reagan National Defense Act for Fiscal Year 2005 (Public Law 108-375), the Congress expressed the view that the affordability of a space-based radar program would be dependent on the development of a single radar satellite system to meet both military and intelligence community needs and the integration of a space radar into an architecture consisting of other intelligence, surveillance, and reconnaissance capabilities. The committee is aware that in 2005 the then-Director of the Central Intelligence Agency and the Secretary of Defense signed a letter to the Director of the Office of Management and Budget stating their intent to pursue joint development of a single space radar capability for the nation, and to develop an approach for sharing costs starting in fiscal year 2008. The committee, however, has not yet seen a solid cost-share agreement between the Department of Defense and the Office of the Director of National Intelligence to jointly fund the SR program, nor has the committee identified funding for such activities in the intelligence community budget. The committee remains concerned about the inability to resolve this impasse and believes two systems are not affordable.

The committee recommends a decrease of $66.4 million in PE 63858F for the SR program, and recommends that remaining funds be directed toward technology development, system engineering, and concept definition that assumes a single SR system that will meet joint requirements and employ a joint concept of operations with the intelligence community.

The committee directs the Secretary, in coordination with the Director of National Intelligence, to submit a report to the congressional defense committees by January 30, 2007, containing the following elements: (1) a description of the respective roles and missions of the intelligence community and the Department with respect to the development of the SR program; (2) the process by which the intelligence community and the Department coordinate joint development efforts and requirements definition; (3) the plans for achieving a cost-share agreement between the intelligence community and the Department for the development and acquisition of a space radar capability; and (4) a commitment from the Secretary and the Director of National Intelligence that the SR program will be a single system responsive to the requirements of each organization.

The committee further directs the Secretary to submit a report to the congressional defense committees by March 15, 2007, addressing the following: (1) the scope of the SR architecture, including the system's interactions with other ground and air-based platforms providing similar capability as well as interactions with TSAT or alternative systems for processing and transmitting SR data to other military applications; (2) the block, or incremental approach, that will be pursued by the SR acquisition program, including key technologies that will be included in blocks 1 and 2 as well as their corresponding levels of sophistication and maturity at the time of program initiation; (3) the extent to which blocks 1 and 2 will meet objective requirements for the SR program and which requirements will need to be delayed as a result; and (4) the schedule for meeting a realistic launch date and potential risks to that schedule.

Increased funding for O2 diesel particulate emission reduction research

The budget request included $2.9 million in PE 63859F for pollution prevention, but included no funding for O2 diesel particulate emission reduction research. The committee notes that the Energy Policy Act of 2005 strengthens the requirement that federal vehicle fleets use alternative fuels in those vehicles capable of using such fuels and requires ongoing assessment of renewable energy resources. The committee believes that research on O2 diesel to date shows demonstrated emissions benefits with regards to carbon monoxide, nitrogen oxides, particulate matter, and visible smoke that meets or exceeds the levels achieved by the 20 percent biodiesel blend currently used in Department of Defense vehicles. The committee recommends an increase of $1.5 million in PE 63859F to continue O2 diesel particulate emission reduction research.

Space control test capabilities

The budget request included $47.3 million in PE 64421F, for Air Force counterspace systems.

The `National Space Policy' of September 1996 specifies that the United States will develop, operate, and maintain space control capabilities to ensure freedom of action in space and, if directed, deny such freedom of action to adversaries. The committee recognizes that continuing development by the Army Aviation and Missile Research, Development and Engineering Center of software applications used to integrate offensive and defensive space control systems into a single system-of-systems simulated testbed could contribute to near-term capabilities for space control and situational awareness.

The committee recommends an increase of $8.0 million in PE 64421F for the ground-based simulated testbed for space control assets.

Joint space intelligent decision support

The budget request included $121.2 million in PE 64425F, for space situational awareness systems, but included no funding for joint space intelligent decision support.

The committee is aware that timely space situational awareness and decision support to Air Force and joint operators is essential for successful space operations. The Army currently has an effort underway to develop this technology for space support. The Air Force effort would complete research conducted by the Army and provide production software code to support global users who are connected via the secure Internet. The committee recommends an increase of $4.0 million in PE 64425F for completion of joint space intelligent decision support software development to provide space operators situational awareness.

Global awareness presentation system

The budget request included $0.2 million in PE 64740F, for integrated command and control applications. Information integration and exchange among the tactical, operational, and strategic levels of U.S. Strategic Command is essential to successful mission assignments in information operations; global intelligence, surveillance, and reconnaissance (ISR); integrated missile defense; and space and global strike. Global Battlespace View (GBV) supports operations centers and fielded units with a seamless information exchange environment. The committee recommends an increase of $4.0 million in PE 64740F for the global awareness presentation system, which provides a visually fused ISR situational awareness and collection capability for the GBV.

RAND Project Air Force

The budget request included $25.2 million in PE 65101F, for RAND Project Air Force. The committee notes that RAND studies and analyses have supported Air Force planning and operations, particularly in acquisition planning and analyses, tanker recapitalization, and assessments of international threats and capabilities. The committee recommends an increase of $4.5 million in PE 65101F to sustain RAND analytical support for the Air Force.

Ballistic missile range safety technology

The budget request included $14.7 million in PE 65860F, for the rocket systems launch program, but included no funding for ballistic missile range safety technology (BMRST).

The committee is aware that BMRST is a global positioning system based launch range safety system that has the potential to provide significant technical and reliability advantages and cost savings over current radar systems. The committee notes that several launch ranges have requested BMRST systems for local range certification as well as down-range reentry support.

The committee recommends an increase of $13.0 million in PE 65860F to support expanded BMRST system capability, critical certification, and testing requirements.

Global command and control development center

The budget request included $27.3 million in PE 11313F, for Strategic War Planning System, but included no funding for the global command and control development center.

The U.S. Strategic Command is assigned multiple global missions, including space and global strike; integrated missile defense; integrated information operations, intelligence, surveillance, and reconnaissance; global command and control; and combatting weapons of mass destruction. Command and control for these missions requires a robust global Internet-like capability to provide the right information to the right people at the right time. The committee recommends an increase of $6.0 million in PE 11313F for the establishment of a global command and control development center.

Single integrated space picture

The budget request included $51.0 million in PE 35906F for threat warning and attack assessment, but included no funding for the single integrated space picture.

In March 2006, the Commander, U.S. Strategic Command testified before the Subcommittee on Strategic Forces of the Committee on Armed Services that `we must improve space situational awareness and protection.' Accordingly, the committee supports efforts to enable military commanders to understand the status of adversary and friendly space forces. The committee recommends an increase of $5.0 million in PE 35906F for the combatant commanders command and control system integrated space picture.

National Security Space Office

The budget request included $13.4 million in PE 35924F, for the National Security Space Office (NSSO). The `National Space Policy' signed in 1996 directs the Secretary of Defense and the then-Director of Central Intelligence to `ensure that defense and intelligence space activities are closely coordinated,' and `that space architectures are integrated to the maximum extent feasible.' The committee strongly endorses this direction and believes that a coherent, effective, and efficient national security space enterprise is in the best interests of the United States. The committee is aware that the Director of National Intelligence has decided not to provide intelligence community funding and support for the collaborative, enterprise-level activities of the NSSO. The committee believes this position is short-sighted and will have serious implications for the nation's future space capabilities.

The committee recommends an increase of $5.0 million in PE 35924F for enterprise-level system engineering, architecture work, and strategy and planning efforts for national security space capabilities. The committee also urges the Director of National Intelligence to reconsider his decision to withdraw support for these important collaborative efforts.

Air Force industrial preparedness activities

The budget request included $36.7 million in PE 78011F, for Air Force industrial preparedness activities and $10.6 million in PE 78611F, for support systems development. The committee notes that the Defense Science Board highlighted the role that the Department of Defense manufacturing technology programs play in reducing the cost of weapons systems and improving the acquisition process. Air Force manufacturing technology programs in propulsion, electronics, and munitions systems have enabled billions of dollars in cost avoidance. The committee recommends an increase of $10.0 million in PE 78011F, including $8.0 million for the development of advanced prototyping of nanomaterials and $2.0 million for rapid manufacturing and repair of composite components for high temperature applications. The committee also recommends an increase of $3.0 million in PE 78611F for aircraft sustainment and availability tools to improve readiness through automated tracking of aircraft maintenance and mission records.

The committee commends Air Force efforts to develop and utilize Manufacturing Readiness Levels as a tool to accelerate technology transition and the acquisition process through the analysis and reduction of manufacturing risk in weapon systems and other programs.

BUDGET ITEMS--DEFENSE-WIDE

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Force protection basic research

The budget request included $150.7 million in PE 61101E, for defense research sciences and $99.2 million in PE 61328BP, for the chemical and biological defense basic research program. The committee recommends an increase of $3.0 million in PE 61101E and $3.0 million in PE 61384BP to expand research programs focused on development of next generation protective gear to counter small-arms threats and chemical-biological threats to service members, respectively.

National Defense Education Program

The budget request included $19.5 million in PE 61102D8Z, for the National Defense Education Program (NDEP). The committee commends the Department of Defense for supporting this targeted and timely program, but notes that the request includes funds for activities that are not authorized including institutional scholarships, fellowships, and traineeships. Of the amount requested in PE 61102D8Z, the committee authorizes $17.0 million specifically for Science, Mathematics, and Research for Transformation scholarships and $2.5 million for other NDEP activities; but authorizes no funding for institutional scholarships, fellowships, and traineeships. The committee recommends that the Department provide information on the need for this activity along with a request for legislative authority to conduct it.

Detection of biological agents in water

The budget request included $99.1 million in PE 61384BP, for chemical and biological defense basic research. The committee notes that the ability to detect the introduction of manmade or natural toxins into inland or coastal waterways is an important component of the overall force protection of U.S. forces. The committee commends the Department of Defense for supporting the advanced technology development of data fusion technologies and mathematical modeling to predict and counter the detection of biological agents in water. The committee recommends an increase of $1.5 million in PE 61384BP to support the demonstration of selected near real-time sensors on buoys, submerged fixtures, and potable water pump stations.

Organic light emitting receptor-based nanosensors

The budget request included $99.2 million in PE 61384BP, for chemical and biological defense basic research, but included no funding for the research and development of organic light emitting receptor-based nanosensors.

The committee supports the Department of Defense's efforts to develop low-cost and lightweight nanosensors for the rapid detection of toxins and the rapid display of alerts for the presence of toxins.

The committee recommends an increase of $2.0 million in PE 61384BP for the development of nanosensors that are capable of simultaneously generating optical and photo acoustic signals upon interaction with target toxins.

Superstructural particle evaluation

The budget request included $99.2 million in PE 61384BP, for chemical and biological defense basic research. Basic science challenges continue to plague efforts to develop comprehensive methods for countering threats posed by chemical and biological warfare agents. The committee commends the Department of Defense for supporting basic research to address both the chemical and biological threat. The committee recommends an increase of $3.2 million in PE 61384BP to accelerate promising work in superstructural particle evaluation and characterization with targeted reaction analysis. This program will allow investigations of real-time, micro-scale responses of cells and microbes to the influence of a variety of chemical species, including chemical warfare agents, toxins, or potential protective or therapeutic substances.

Medical free electron laser

The budget request included $10.3 million in PE 62227D8Z, for the medical free electron laser program. The committee recommends an increase of $10.0 million in PE 62227D8Z to continue research efforts that utilize free electron lasers to address critical military medical requirements.

Alternative delivery of recombinant protein vaccines

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research. The committee commends the Department of Defense for supporting research to address the need for new vaccine delivery devices and powder vaccine technologies to improve the performance of biodefense vaccines and reduce the logistical challenges in delivering those vaccines. The committee recommends an increase of $5.1 million in PE 62384BP to accelerate promising work on vaccine-device combinations. This program will facilitate the rapid deployment in minimally invasive delivery formats, provide superior protection, and in some cases, improve the stability for stockpiled vaccines.

Chemical and biological smart materials

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research, but included no funding for the research and development of chemical and biological smart materials to enhance individual and collective protection.

The committee notes that the Department of Defense has identified warfighter protection capability shortfalls in several research areas to include individual and collective protection. The committee recognizes the importance of the development of technologies for the improvement of chemical and biological agent individual protection ensembles. The committee recommends an increase of $4.0 million in PE 62384BP for the research and development of chemical and biological smart materials to address this shortfall.

Escape mask

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research, but included no funding for the research and development of escape masks or hoods. The committee notes the importance of the development of escape masks and respirators with a capability to protect individuals from carbon monoxide. The committee recommends an increase of $4.0 million in PE 62384BP for the development of escape mask capability shortfalls.

Multipurpose biodefense immunoarray

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research, but included no funding for the research and development of multipurpose biodefense immunoarray technology.

The committee notes that protein microarrays have the potential to screen hundreds of proteins simultaneously for reactivity with serum antibodies.

The committee recommends an increase of $1.5 million in PE 62384BP, for the continued development of microarray diagnostics, which could determine previous exposure to biological agents; assess the effectiveness of vaccine immunizations; and determine the potential of new vaccines to elicit an immune response.

Mustard gas antidote

The budget request included $30.7 million in PE 62384BP, for medical chemical defense applied research. This program emphasizes the prevention of chemical casualties and addresses capability gaps in the area of prophylaxes for chemical warfare agents. The committee recommends an increase of $3.0 million in PE 62384BP for mustard gas antidote research. The committee commends the Department of Defense for current research focused on a mustard gas antidote using signal transduction inhibition antioxidant liposomes (STIMAL), and notes that STIMAL research has demonstrated the potential to substantially reduce the effects of a range of chemical agents.

Next-generation chemical biological protective suit

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research, but included no funding for the research and development of the next-generation chemical and biological protective suit.

The committee notes the importance of the development of a next-generation, self-decontaminating chemical and biological protective suit for U.S forces to reduce the physiological and logistical burden of protective clothing. The committee recommends an increase of $4.0 million in PE 62384BP for the development of self-decontaminating materials to address this shortfall.

Personal protection against infectious agents

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research, but included no funding for collaborative research and development related to personal protective masks and anti-microbial filters that protect against exposure to infectious agents and diseases. The committee recommends an increase of $1.0 million in PE 62384BP for research and development to improve the respiratory protection for individual protection ensembles from emerging infectious agents and diseases.

Rapid identification of biological warfare agents

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research. The committee commends the efforts of the Department of Defense to develop the Joint Biological Standoff Detection System (JBSDS) as the first stand-off early warning biological detection system capable of providing near real time, early warning detection of biological warfare agents.

The committee notes the importance of the development of technologies for the rapid detection of biological agents such as anthrax and ricin that could be weaponized and employed against U.S. forces. The committee recommends an increase of $1.0 million in PE 62384BP for the research and development of an early warning, biological detection system capable of providing near real time detection of the biological agents most likely to be weaponized and employed against U.S. forces.

Verification and validation of chemical agent persistence models

The budget request included $280.4 million in PE 62384BP, for chemical and biological defense applied research, but included no funding for the verification and validation of chemical agent persistence models.

The committee notes the agent fate program is a joint service program that focuses on the acquisition of chemical warfare agent data and the development of models from that data. The continuation of the agent fate effort to validate and verify chemical agent persistent models will help protect U.S. military forces and equipment, and permit those forces to operate effectively in a chemically contaminated environment.

The committee recommends an increase of $2.0 million in PE 62384BP, for verification and validation of chemical agent persistence models to ensure U.S. forces are capable of operating effectively in a chemically contaminated environment.

Tactical technology

The budget request included $383.7 million in PE 62702E, for applied research on tactical technology. The committee notes that the request represents an increase of nearly $40.0 million over current funding levels. The committee recommends a decrease of $10.0 million in PE 62702E, including: $2.0 million for the HEDLight program, which is not currently a high priority for the Navy; $2.0 million to delay the Tethered Urban Airborne Node new start program; and $6.0 million for research on automated battle management systems. It is unclear how this effort is coordinated with the major, Department-wide effort to develop a Joint Battle Management Command and Control roadmap.

Biochemical materials

The budget request included $297.3 million in PE 62715E, for materials and biological technology. The committee recommends a decrease of $5.0 million in PE 62715E to limit growth in biochemical materials research programs. The committee notes that some of these activities are more appropriately performed at civilian agencies.

Modeling and simulation

The budget request included $105.0 million in PE 62717BR, for weapons of mass destruction (WMD) defense technologies. Detailed and comprehensive characterization of catastrophic attacks and disasters is critical to crisis and logistical planning. The committee recommends an increase of $5.0 million in PE 62717BR for development of a comprehensive national incident characterization and management system.

Wearable hyperspectral imaging system

The budget request included $12.7 million in PE 116401BB for Special Operations Forces (SOF), Technology Development. The committee notes the need to integrate technologies currently under development into a low cost, wearable, hyperspectral imaging system to assist SOF elements with the detection of improvised explosive devices, target location, and target identification. The committee recommends an increase of $3.6 million in PE 116401BB, for the development of wearable hyperspectral imaging technology for SOF elements.

Radiation detection technology

The budget request included $8.7 million in PE 63160BR, for proliferation prevention and defeat radiation detection technology. The committee notes the importance of developing higher quality, more cost-effective nuclear radiation detectors to enhance the ability to detect and identify hazardous materials that pose a proliferation threat. The committee recommends an increase of $2.0 million in PE 63160BR for procuring glass scintillation fiber radiation detectors and developing new portable applications, including backpack detectors, panels for aircraft, and detectors included in clothing systems. The committee further recommends an increase of $2.0 million in PE 63160BR for the development of a state-of-the-art radiation portal monitor using High Purity Germanium technology, which will enable the Defense Threat Reduction Agency to replace lower resolution technology at defense installations with better performing nuclear detection equipment with greater sensitivity.

Advanced aerospace systems

The budget request included $115.8 million in PE 63286E, for advanced aerospace systems research. The committee recommends a decrease of $16.3 million in PE 63286E, including: $5.3 million for efforts to develop a global range transatmospheric vehicle that is not consistent with current service acquisition plans or goals; $4.0 million for the development of a heavy fuel engine for the A160, which lacks a transition pathway to Army Future Combat Systems; $4.0 million for the Cormorant air vehicle program; and a general decrease of $3.0 million to new start efforts in the account.

Next Generation Gas Chromatographic Mass Spectrometer

The budget request included $207.1 million in PE 63384BP, for chemical and biological defense advanced research. The Weapons of Mass Destruction Civil Support Teams (WMD-CST) currently use commercial, off-the-shelf (COTS) Gas Chromatographic Mass Spectrometers (GCMS) to identify threats posed by chemical warfare agents. The committee commends the Department of Defense for supporting the advanced technology development of next generation COTS GCMS. The committee recommends an increase of $2.0 million in PE 63384BP to continue the development, modification, test, and evaluation of next generation COTS GCMS products. This program will allow WMD-CST the ability to refresh their inventory with a technically superior GCMS capability.

Joint advanced concept technology demonstration

The budget request included $35.6 million in PE 63648D8Z, for joint capability technology demonstrations. The Department of Defense initiated this new technology transition program in the fiscal year 2006 budget request to update the successful advanced concepts technology demonstrations to more closely align with the Joint Capabilities Interoperability Development System (JCIDS) and to enhance the participation of the combatant commanders through the JCIDS process. The committee recommends an increase of $2.2 million in PE 63648D8Z to accelerate transition of the large data image visualization capability that will assist the joint warfighter and the intelligence community in processing increasing volumes of data in real time.

Joint robotic autonomous systems

The budget request included $7.7 million in PE 63711D8Z, for joint robotics program/autonomous systems, but included no funding for development of a versatile, modular, diesel hybrid unmanned system capable of delivering multiple payloads in the 2000-4000 pound range. The committee recommends an increase of $3.0 million in PE 63711D8Z to modify existing capabilities for additional unmanned logistics support missions.

Advanced mobile gas-to-liquid fueler

The budget request included $23.4 million in PE 63712S, for generic logistics research and development technology demonstrations. Adequate, reliable, and cost-effective fuel supplies are important for military operations in changing or hostile environments. Alternative fuel systems offer possible long-term solutions in reducing the logistical footprint of deployed forces, if successfully configured to meet military requirements. The committee recommends an increase of $5.0 million in PE 63712S for continued development of mobile gas-to-liquid fuelers to demonstrate innovations in converting biomass to synthetic diesel fuel.

Defense Logistics Agency research and technology demonstrations

The budget request included $23.4 million in PE 63712S, for generic logistics research and development technology demonstrations. The committee notes that the Department of Defense is the largest single user of energy in the United States. Energy and power represent significant and growing burdens on the Department budget. The Defense Logistics Agency recently reported that hydrogen as a fuel may become a viable option for the Department, if remaining technical and logistical challenges can be solved. The committee recommends an increase of $3.0 million in PE 63712S to create a comprehensive and integrated strategy and to plan for the appropriate use and acquisition of hydrogen fuel.

The committee further notes that the use of solid hydrogen storage materials for portable, vehicle, and stationary fuel cell applications shows promise in addressing safety, cost, and performance issues related to fuel cell systems. The committee recommends an increase of $8.0 million in PE 63712S for research on and technology demonstrations of solid hydrogen storage systems that can support military requirements and technology development goals. The committee further recommends an increase of $7.0 million in PE 63712S for the continuation of the vehicle fuel cell program to accelerate the development and deployment of fuel cell technologies in military vehicles through advanced research and demonstration programs.

The committee also recommends an increase of $12.9 million in PE 63712S, including $3.0 million to support the manufacturing supply chain and for increased involvement of small- and medium-sized firms in meeting defense surge production requirements; $4.0 million for the embedded passives test bed program; $4.2 million for aging systems sustainment and enabling technologies; and $1.7 million for the development of an emergency power source to meet National Guard requirements.

Dendrimer enhanced water remediation research

The budget request included $67.1 million in PE 63716D8Z, for the Strategic Environmental Research and Development Program, but included no funding for dendrimer enhanced water remediation research. The committee notes that research has shown that dendrimers have remarkable capacity to retain a variety of metal and organic molecules, making them ideal materials for water remediation. This project would demonstrate the feasibility of dendrimers in reusable cartridges for point-of-use water filtration units. The committee recommends an increase of $2.0 million in PE 63716D8Z for dendrimer enhanced water remediation research.

Computer modernization technologies

The budget request included $158.3 million in PE 63750D8Z, for advanced concepts technology demonstrations and $175.3 million in PE 63755D8Z for the high performance computing modernization program.

The committee recommends an increase of $2.0 million in PE 63750D8Z for the continued development of masking shunt cybersecurity techniques and technologies to increase the security of military networks and information systems against enemy information operations. The Joint Chiefs of Staff's Coalition Warrior Interoperability Demonstration Joint Management Office recommended further development and procurement of this technology after successful demonstration.

The committee further recommends an increase of $2.0 million in PE63755D8Z for upgrades to the Space and Missile Defense Command simulation center to meet increasing computational demands. The center supports high performance computing modernization efforts to accelerate the development and transition of advanced defense technologies into warfighting capabilities through supercomputing and computational modeling, including supporting the development of armor systems, weather forecasting models, and test and evaluation.

Command, control, and communications systems

The budget request included $232.5 million in PE 63760E, for command, control, and communications systems. The committee recommends a decrease of $2.8 million in PE 63760E for the Next Generation (XG) program. The XG communications technology had been planned for a fiscal year 2007 transition to the Army in the Joint Tactical Radio Systems (JTRS) clusters. The committee notes that the JTRS program is undergoing significant technical reevaluation and program restructuring, so transition of this and other technologies appears problematic. The committee further recommends a decrease of $5.0 million in PE 63760E to better align the budget with proposed activities of the Predictive Analysis for Naval Deployment Activities program.

Portable explosive detection

The budget request included $107.8 million in PE 63826D8Z, for quick reaction special projects. The committee notes that advances in capabilities to detect trace amounts of explosive materials support efforts to prevent attacks using bombs and improvised explosive devices. The committee recommends an increase of $3.5 million in PE 63826D8Z for rapid testing, training, and logistics support for a low-cost, portable, easy-to-operate explosive screening and countermeasure system.

Joint modeling, simulation, and experimentation

The budget request included $115.7 million in PE 63828D8Z, for joint experimentation, modeling, and simulation technologies, but included no funding for joint effects-based modeling and simulation that effectively incorporates political, economic, infrastructure, information, societal, and diplomatic factors, as well as coalition warfare, at the tactical level of operations.

The 2006 Quadrennial Defense Review (QDR) Report noted that the Department of Defense must `shift its emphasis from Department-centric approaches toward interagency solutions' to incorporate all elements of national power. Cooperation across the Federal Government is essential and can be facilitated efficiently by enhanced modeling, simulation, and experimentation. Similarly, the Report identified that the ability of the United States and its allies to work together to influence the global environment is fundamental to defeating terrorist networks.

The committee believes that the Department must develop a world-class experimentation, modeling, and simulation capability that is joint, interagency, and coalition at the tactical level of operation. This is especially important since Cold War era distinctions between tactical and strategic have been increasingly obscured. The committee also believes that joint modeling, simulation, and experimentation would be most effectively conducted at Joint Forces Command.

The committee recommends an increase of $10.0 million in PE 63828D8Z, for Joint Experimentation, to further develop joint, interagency, and coalition modeling, simulation, and experimentation.

Advanced tactical airborne command, control, communications, computer, intelligence, surveillance, and reconnaissance system

The budget request included $80.4 million in PE 116402BB for Special Operations Forces (SOF), Advanced Technology Development, but included no funding for a SOF stand-off, airborne, modular advanced tactical airborne command, control, communications, computer, intelligence, surveillance and reconnaissance (C4ISR) system.

The committee notes SOF elements require a C-130-based, roll-on, C4ISR system to respond to current and emerging asymmetrical warfare threats. The committee recommends an increase of $3.2 million in PE 116402BB for the further development of a roll-on C4ISR sensor and communications suite to enhance the intelligence gathering capabilities and command and control relay capability of SOF elements engaged in the global war on terror.

Advanced tactical laser

The budget request included $80.4 million in PE 116402BB, for Special Operations Forces (SOF), Advanced Technology Development, including $45.0 million for the advanced tactical laser (ATL) program.

The ATL Advance Concepts Technology Demonstration (ACTD) is a long-standing effort to weaponize directed energy technology into an existing tactical platform. While a potentially promising concept, the program has faced formidable challenges, including the absence of a technology transition plan.

The committee recommends a decrease of $20.0 million in PE 116402BB, while the technical challenges associated with ATL are addressed and an effective transition plan for this technology is developed and implemented.

Flashlight soldier-to-soldier combat identification system

The budget request included $80.4 million in PE 116402BB for Special Operations Forces (SOF), Advanced Technology Development, but included no funding to develop new capabilities to address the identification of friendly forces for SOF elements in a ground combat environment.

The committee commends the Department of Defense's efforts to develop technologies to assist in the prevention and ultimate elimination of friendly fire incidents on changing and complex battlefields. Flashlight soldier-to-soldier combat identification system (FSCIS) is a friend-or-foe combat identification system that employs focused radio frequency beams to identify the presence of friendly units in an area of impending combat.

The committee recommends an increase of $2.0 million in PE 116402BB, for SOF Advanced Technology Development, for the development of FSCIS technology.

Small and medium caliber recoil mitigation technologies

The budget request included $80.4 million in PE 116402BB for Special Operations Forces (SOF), Advanced Technology Development, but included no funding for SOF small and medium caliber recoil mitigation technology.

The committee notes that the current small and medium caliber weapons in use today by SOF elements possess recoil technologies more than 50 years old. The committee further notes that recoil management is at the core of reducing small arms weight, while improving lethality and reliability.

The committee recommends an increase of $3.0 million in PE 116402BB for the further development of advanced prototypes of small and medium caliber weapons to improve SOF lethality in close-quarter and urban combat environments.

Special Operations portable power source program

The budget request included $80.4 million in PE 116402BB for Special Operations Forces (SOF), Advanced Technology Development, but included no funding to develop solid oxide fuel cell systems.

The committee notes such systems are designed to significantly reduce the weight burden of batteries for SOF operators, and that a reduction in battery weight will have a direct impact on increasing the capability of SOF elements and their equipment. The committee further notes that the Department of Defense is exploring various approaches to solving energy and power challenges for dismounted forces, including lightweight zinc-air batteries for the Marine Corps.

The committee recommends an increase of $5.0 million in PE 116402BB for SOF, Advanced Technology Development, for the SOF portable power source.

Anthrax and plague oral vaccine research and development

The budget request included $73.1 million in PE 63884BP, for advanced technology development specific to medical bio-defense. The committee supports the Department of Defense's efforts under this account to develop and test safe and effective prophylaxes and therapeutics for pre- and post-exposure to biological threats and agents. The committee recommends an increase of $4.0 million in PE 63884BP for the development of a single-dose oral vaccine that can protect against multiple biological warfare agents, including anthrax and plague. This effort parallels the Department's plague vaccine development program and may provide superior protection against pneumonic plague.

Airborne Infrared System

The budget request included $514.5 million in PE 63884C, for ballistic missile defense sensors, but included no funding for the Airborne Infrared System (AIRS).

AIRS is a system of infrared and visible sensors that can track ballistic missiles and their warheads in all phases of flight. The committee believes that such a system, if and when deployed, could provide important test, operational, and technical intelligence capabilities in support of ballistic missile defense.

The committee recommends an increase of $5.0 million in PE 63884C for AIRS research and development. This increase will allow the Missile Defense Agency to proceed with final engineering development and `in-line' demonstrations of system connectivity, a closed loop fire control system, and prototype design for integration on manned or unmanned vehicles.

Corrosion prevention research

The budget request included $5.0 million in PE 64016D8Z, for the Department of Defense corrosion program. Established by the committee in section 1067 of the Bob Stump National Defense Authorization Act for Fiscal year 2003 (Public Law 107-314), this program is developing a comprehensive capability to prevent and mitigate corrosion and its effects on Department weapon systems and infrastructure, which some estimates indicate cost the Department over $20.0 billion annually.

The committee is concerned that corrosion prevention and control is not effectively incorporated into existing accredited undergraduate engineering curricula resulting in continued development of new designs that do not utilize existing corrosion data and corrosion resistant technologies and materials. The committee directs the Secretary of Defense, working through the Department of Defense Corrosion Executive and the Department of Defense Corrosion Policy and Oversight Office, to commission a study by the National Academy of Sciences to assess undergraduate corrosion education in engineering programs and develop recommendations for curricula that could enhance the corrosion-based skill and knowledge base of graduating engineers. The study should build on the congressionally-mandated report, entitled the `2001 Corrosion Costs and Preventive Strategies in the United States.' The results of the study should be transmitted to the congressional defense committees not later than April 1, 2008.

The committee recommends an increase of $2.0 million in PE 64016D8Z to support efforts to reduce corrosion costs to the military through improved corrosion education and training and application of corrosion prevention and control technologies. Not more than $0.8 million of the funds provided should be available for the required study.

Playas command and control network

The budget request included no funding for a command and control network at the training, research, development, test and evaluation complex at Playas, New Mexico. The development of a comprehensive command and control network at this facility was initiated in 2005. This network includes video and network monitoring equipment to control, communicate, observe, and record training taking place at the facility. The committee recommends an increase of $5.0 million in PE 63757D8Z for a command and control network at Playas, New Mexico.

Militarily critical technologies support

The budget request included $2.0 million in Operation and Maintenance, Defense-wide (OMDW) for specific analytical capabilities to enhance the militarily critical technologies program. The committee recommends a transfer of $2.0 million from OMDW to Research, Development, Test and Evaluation in PE 65110D8Z for critical technology support, which conducts the technical analysis to support timely updates to the militarily critical technologies list.

Operationally responsive space payloads

The budget request included $20.4 million in PE 65799D8Z, for the Office of Force Transformation (OFT) in the Office of the Secretary of Defense. One of the activities, for which funding is requested, includes the critical design of a standardized bus for tactical satellite operations and the development of operationally responsive payloads in support of the warfighter. The committee notes that the Department of Defense has requested insufficient funding for fiscal year 2007 to continue development of a modular, standard bus, develop responsive payloads, and complete the experimentation necessary to demonstrate tactical satellite capabilities.

The committee recommends an increase of $25.0 million in PE 65799D8Z for development of operationally responsive space capabilities. Of this amount, $20.0 million is for payloads, satellite busses, integration, command and control, and joint warfighter experimentation; and $5.0 million is to support adapting existing airborne reconnaissance sensor capabilities for use in response space missions.

DARPA management headquarters

The budget request included $51.0 million in PE 65898E, for the management headquarters overhead account for the Defense Advanced Research Projects Agency (DARPA). The committee notes that this account has risen 58 percent between fiscal years 2000 and 2007. The committee understands that some of these costs are due to additional security measures installed in the last few years, but believes that DARPA should continue to strive to limit overhead expenditures so that more funding is available to support high-risk, high-payoff research efforts. The committee recommends a decrease of $5.0 million in PE 65898E for research overhead costs.

Armed Forces medical and food research

The committee believes that the funding requested in PE 31301L, for General Defense Intelligence Program (GDIP), and in Operation and Maintenance, Defense-wide (OMDW), is insufficient for medical intelligence research and development.

The committee recommends an increase of $4.5 million in PE 31301L, for GDIP, and $2.2 million in OMDW to develop capabilities to conduct threat and vulnerability analysis of medical and food processing and handling systems in a laboratory environment using biological and chemical threat agents.

High performance computational systems

The budget request included no funding for the General Defense Intelligence Program to continue the evaluation of computing technologies required for the performance of next generation analysis, modeling, and simulation tasks. Continued research and analysis in this field will lead to more effective data fusion from distributed sensor networks for use in combat situations and urban environments.

The committee is aware that the Defense Intelligence Agency (DIA) established a laboratory for high performance computational systems at the University of Alabama in Huntsville in 2005. It was funded at $1.6 million in fiscal year 2006. The committee recommends an increase of $2.0 million in PE 31301L for the continuation and expansion of a laboratory for high performance computational systems to support the DIA.

Commercial airborne interferometric synthetic aperture radar imagery

Commercial airborne interferometric synthetic aperture radar (IFSAR) imagery provides imagery and elevation data used for mapping. Commercial IFSAR imagery is used regularly by the National Geospatial-Intelligence Agency (NGA) to update maps and conduct intelligence analysis. The technology was designed for broad area collection and is especially well-suited for regions of the world with frequent cloud cover, such as Colombia, Indonesia, and the Phillippines. It is also used to support coalition and allied countries. The use of commercial IFSAR imagery will assist NGA in its mapping requirements and permit collection platforms to satisfy other imagery requirements.

The committee recommends an increase of $10.0 million in PE 35102BQ, for Defense Geospatial Program, to further the use of commercial IFSAR imagery for map updates, intelligence analysis, and to support coalition and allied nations.

Credibility assessment research

The demand for polygraph examinations, employment screening, and access control in the Department of Defense has increased in recent years. The committee is aware of research conducted at Boise State University which demonstrated that automated polygraph tests conducted in the context of an employment interview can be significantly more accurate than those conducted by a human examiner. The university has also begun work a Computerized Port of Entry Screening System to meet the critical need for rapid and easy credibility assessment at ports of entry.

The committee recommends an increase of $2.0 million in PE 35127BZ, for Foreign Counterintelligence Activities, to allow for continued research and initial laboratory validation of a fully standardized, machine-administered, scientifically-based polygraph test.

Combat sent wideband sensor upgrade

The proliferation of wideband threat radars drives the requirement for continued advancements in wideband signal detection, measurement, and identification.

The committee recommends an increase of $6.0 million in PE 35206G, for Airborne Reconnaissance Systems, for the Combat Sent wideband sensor upgrade program to ensure the United States maintains the ability to process threat radars and effectively track the proliferation of potentially hostile radar equipment. The desired goal is to have software reprogrammable systems that will support rapid and cost-effective upgrades as threat radars continue to evolve.

Castings for improved readiness

The budget request included $18.7 million in PE 78011S for industrial preparedness programs of the Defense Logistics Agency (DLA). The committee recommends an increase of $3.0 million in PE 78011S to support castings for improved readiness program, aimed at bringing castings expertise into defense supply centers; reducing backorder times for critical cast and forged parts; developing new manufacturing processes for the defense industrial base, and establishing a data exchange system to coordinate castings information and ensure timely parts availability.

High performance defense manufacturing technology research and development

The budget request included $18.7 million in PE 78011S, for industrial preparedness activities. The committee recommends an increase of $5.0 million in PE 78011S to enable the Joint Defense Manufacturing Technology Panel to execute activities mandated in sections 241 through 245 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163). The committee notes that this legislation has been supported by the Defense Science Board (DSB) in its recent report, entitled `The Manufacturing Technology Program: A key to Affordably Equipping the Future Force.' The DSB report stated that `the task force supports the intent of the proposed amendment drafted by the Senate Armed Services Committee to enhance manufacturing technology strategies ..., which calls for public-private partnership incentives, industry roadmaps for new manufacturing and technology processes, test beds for technology transition, and other cooperative programs.'

The committee endorses the DSB recommendation to establish an additional Defense-wide program element (`D line') to execute `multi-Service, multi-platform' manufacturing technology initiatives. The committee encourages the Department of Defense to create a Defense-wide program element, managed by the Joint Defense Manufacturing Technology Panel for execution of the High Performance Defense Manufacturing Technology Research and Development program, and to transfer the additional authorized funds above from PE 78011S into the new line for this purpose.

Helmet mount track system

The budget request included $45.2 million in PE 116404BB for Special Operations Forces (SOF), Tactical Systems Development, but included no funding to develop new capabilities for the helmet mount track system.

The helmet mount track system has enhanced features that allows the operator to modify the position of their night vision goggles, which can lower the operator's profile, reduces the weight placed on the operator's neck eliminating the cantilever effect that otherwise causes operator injuries, and enhances the operator's combat identification capability.

The committee recommends an increase of $2.4 million in PE 116404BB for the development of the helmet mount track system for SOF elements.

Special Operations combat assault rifle

The budget request included $45.2 million in PE 116404BB for Special Operations Forces (SOF), Tactical Systems Development, but included no funding for the Special Operations Combat Assault Rifle (SCAR).

The committee notes that the SCAR is a multipurpose weapon that integrates an enhanced grenade launcher module and will replace five different individual weapons currently used by SOF elements, which will vastly reduce the logistics and maintenance support effort. The committee further notes that the rifle's operating system and external configuration are based on an open architecture design, which will permit the system to accommodate future improvements in ammunition and accessories. The SCAR is characterized by unprecedented lethality, effectiveness, modularity, and dependability.

The committee recommends an increase of $4.1 million in PE 116404BB for SOF Tactical Systems Development for development of the SCAR.

Wavelet packet modulation

The budget request included $45.2 million in PE 116404BB for Special Operations Forces (SOF), Tactical Systems Development, but included no funding for Wavelet Packet Modulation (WPM). SOF operate in a global environment where their presence and communications must remain undetected. WPM technology surveys the signal environment to adequately disburse communications so that it is nearly impossible to detect the signal or waveform. The committee recommends an increase of $4.4 million in PE 116404BB for the continued development of WPM technology for communications and networked threat warning sensor systems.

Multi-spectral laboratory and analytical services center program

The budget request included $29.0 million in PE 116405BB, for Special Operations Forces (SOF), Intelligence Systems Development, but included no funding for multi-spectral sensors. The committee notes the urgent need for next generation, multi-spectral sensors to support the warfighter, specifically in the areas of stand-off biometric collection. The committee recommends an increase of $6.0 million in PE 116405BB, for the development of sensors for SOF elements to effectively integrate stand-off biometric capabilities.

Special Operations wireless management and control project

The budget request included $29.0 million in PE 116405BB for Special Operations Forces (SOF), Intelligence Systems Development, but included no funding to develop new capabilities for the Joint Threat Warning System (JTWS) as threats evolve.

The special operations wireless management and control project will develop capabilities that can be integrated into the JTWS that will provide special operations forces the tactical capabilities to maintain situational awareness of the wireless communications being used by potential adversaries.

The committee recommends an increase of $4.0 million in PE 116405BB for the development and integration of a wireless management and control capability for the JTWS.

ITEMS OF SPECIAL INTEREST

Airborne Laser

The budget request contained $632.0 million in PE 63883C, for Ballistic Missile Defense Boost Defense Segment. The committee is encouraged with the recent technical progress the Airborne Laser (ABL) program has demonstrated over the previous two years, including first flight, firing of the high energy laser modules in ground tests, and flight testing of the aircraft with the beam control/fire control system installed. The committee further notes that these technical challenges were accomplished on the current schedule and within the current budget.

The committee notes the decision by the Missile Defense Agency (MDA) to defer the procurement of a second ABL aircraft two years later than proposed in the President's budget request for fiscal year 2006 for purposes of assessing the results of a lethal shoot-down demonstration planned for late 2008. The committee further notes that a mature ABL platform, the primary boost phase ballistic missile defense capability, may not be ready for deployment until late next decade. Therefore, the Committee believes that if the planned shoot-down demonstration is fully successful, MDA should be prepared, consistent with its knowledge-based acquisition approach, to continue development, design, and testing of the ABL system in an effort to provide this transformational war fighting capability to the military commanders and war fighters.

The committee directs the Missile Defense Agency to submit a report to the congressional defense committees by February 1, 2007 to provide a detailed explanation of its plan for the future of the ABL program, including testing, development, design, and funding in the future-years defense program.

Air Force science, technology, test and evaluation

The committee notes that the Air Force budget request for science and technology programs is $2.1 billion, an increase of over $150.0 million compared to the fiscal year 2006 budget request. In times of limited budgetary resources and increasing near-term demands, the committee commends the Air Force for committing to continued stable support of the critical Air Force research and technology enterprise. These well-managed and well-focused efforts are creating the capabilities that will shape the Air Force of the future and enable it to meet the threats of the 21st century. The Air Force appreciation of the vital role of science and technology in supporting Air Force missions and the resources required for quality research efforts extends to the inclusion of science and technology on the Chief of Staff of the Air Force's unfunded priorities list.

The committee further commends Air Force efforts to leverage the technical skills resident in its science and technology enterprise to address pressing problems in weapon systems development and acquisition. The committee notes that the Air Force has begun a program to utilize assessment and analysis of manufacturing readiness levels to reduce risk in acquisition programs. The committee also notes that efforts led by the Air Force science and technology community to support the service acquisition executive with more disciplined systems engineering in the pre-acquisition planning phases will further strengthen the transition process resulting in acquisition programs with the latest technology and more mature technical planning and credibility.

The committee notes that these activities are in contrast to Air Force disinvestment in vital test and evaluation (T&E) activities. In the fiscal year 2007 budget request, the Air Force has reduced T&E activities by nearly $400.0 million over the future-years defense program, relative to projected budgets for this activity presented to Congress with the fiscal year 2006 budget request. The committee notes that T&E activities support the acquisition process by reducing technical risk and protect the warfighter by developing technologies that are reliable, safe, and operationally effective. The committee believes that the proposed reduction in T&E funding could result in delayed and more expensive acquisition programs, and even potentially in the deployment of unproven or ineffective technologies to the warfighters.

Future Combat Systems and current force interoperability

The Future Combat Systems (FCS) program includes four `spin-out' technologies, that will introduce FCS technologies and systems into the current force. These fielding spin-outs are currently planned to occur in 2008, 2010, 2012, and 2014 to an experimental brigade and then two years later to the rest of the Army. The first spin-out of FCS technology in 2008 is to emphasize improved munitions and sensors connected in an initial version of the FCS network. FCS network capabilities will include a pre-engineering design module of Joint Tactical Radio System (JTRS) radio and a wideband networking waveform. While the Army's focus is on FCS networking capabilities, the committee is concerned that funding constraints may limit the spin-out of FCS technologies to the current force, especially those capabilities that will enable FCS-equipped brigade combat teams (BCT) to interoperate with current force BCT. There is little doubt that current force systems will be in the inventory for decades while the Army fields FCS-equipped BCTs. There is also doubt that future Army budgets will be able to afford FCS, modularity, and reset. The Army should be exploring affordable alternatives to ensure that FCS-equipped and current force BCTs are interoperable.

The committee believes that the Force XXI Battle Command Brigade and Below (FBCB2) program may provide the backbone for an architecture that could meet FCS-equipped and current force BCTs interoperability requirements. The committee also believes that the Army's FCS spin-out plan can provide the basis to develop, test, and field affordable alternatives. The committee directs the Secretary of the Army to provide a report to the congressional defense committees no later than March 1, 2007, on the Army's strategy to ensure that FCS-equipped and current force BCTs can achieve affordable interoperability.

Information assurance progress report

The committee commends the Department of Defense for recent efforts to focus high-level attention on the importance of information assurance (IA) for classified systems and for critical Department networks and data. New directives and guidance issued by the Chairman of the Joint Chiefs and the U.S. Strategic Command in late 2005 and early 2006 have reportedly resulted in improvements to IA compliance, awareness, and accountability. Although these recent steps to improve information security and assurance are encouraging, the committee remains concerned about the vulnerability of the cyber infrastructure and the number of deficiencies that have not yet been addressed.

In a September 2005 report, the Department Inspector General determined that `DoD cannot be assured that it has a complete inventory of major information systems. Without a complete inventory of DoD major information systems, answers to questions from OMB or Congress on major information systems may not be accurate and information assurance is at risk because there is little assurance that all systems are adequately protected.'

The Department has issued numerous strategies, policies, directives, and implementation guidance documents designed to ensure protection of information systems, networks, and communications. As noted above and in other reports and audits, progress has been slow.

The committee directs the Secretary of Defense to report to Congress no later than March 1, 2007, on progress in addressing identified deficiencies and continued vulnerabilities in IA. The report should address timely implementation of identified network and information systems security gaps, which continue to result in unreliable critical information systems and unknown large quantities of information lost or unsecured. The report should include schedules for, and details of, Department progress in the following areas:

      (1) development of a complete, comprehensive, enterprise-wide inventory of information systems;

      (2) implementation of standards for interoperable, joint communications;

      (3) plans to incorporate IA as a critical operational training objective in every major joint exercise;

      (4) maturation of tactics, techniques, and procedures for information intrusion detect, react, and restore missions; and plans for strengthening forensic capabilities;

      (5) development of information system and network failure response and continuity plans that keep pace with the pace of technology development;

      (6) implementation of firewalls or intrusion detection systems in all deployed units;

      (7) definition and identification of positions with significant security responsibilities;

      (8) development of training and certification requirements for information technology security professionals, including tracking and monitoring of training progress;

      (9) determination of appropriate penalties for noncompliance with IA directives and guidance;

      (10) standardization of a working definition of `system' for purposes of management oversight;

      (11) establishment of relationships between Department IA components and IA components in other federal departments and agencies;

      (12) establishment of mechanisms to utilitize industry technology, expertise, and knowledge to address long-term Department needs and capability to confront specific threats and events;

      (13) allocation of resources to support science and technology developments specific to national security IA requirements; analysis of international capabilities in IA; and

      (14) other relevant Department IA activities and efforts.

The committee expects that the required report should focus attention on incomplete tasks and place a priority on timely implementation of completion of these tasks.

Joint Tactical Radio System

In the Defense Appropriations Act for Fiscal Year 2006 (Public Law 109-148), the Joint Tactical Radio System (JTRS) budget request was reduced $334.3 million due to program delays. In response to the urging of Congress, the Department of Defense established a JTRS Joint Program Executive Office (JPEO), and the program was restructured. On March 31, 2006, the Undersecretary of Defense for Acquisition, Logistics, and Technology (USD(AT&L)) signed the JTRS Acquisition Decision Memorandum which reflected the restructured program.

The committee understands the complex nature of the JTRS program and the related difficulties of working within the consensus-driven Overarching Integrated Program Team management structure. The committee understands that the USD(AT&L) and the Vice Chairman of the Joint Chiefs have agreed to use the JTRS program as a pilot for a new acquisition governance model. The committee strongly encourages the Department to implement this pilot model now.

Survey of science and engineering workforce shaping programs

The committee directs the Under Secretary of Defense for Acquisition, Technology, and Logistics to conduct a survey of programs designed to educate, train, and recruit scientists and engineers for Department of Defense laboratories and components. The report should outline the historical and current program budgets; targeted populations; program structures and management; and program results. The programs to be considered as part of the technical workforce shaping survey include: teacher education and mentoring; curriculum development; prize competitions; K-12 outreach; scholarships, fellowships, traineeships, and internships; and coordination with service academies and academic institutions specific to education and workforce development and recruitment activities. The Under Secretary of Defense for Acquisition, Technology, and Logistics should submit a report on the results of the survey to the congressional defense committees in conjunction with the March 2007 strategic human capital plan for civilian employees of the Department.

TITLE III--OPERATION AND MAINTENANCE

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

Explanation of tables

The following tables provide the program-level detailed guidance for the funding authorized in title III of this Act. The tables also display the funding requested by the administration in the fiscal year 2007 budget request for operation and maintenance programs, and indicate those programs for which the committee either increased or decreased the requested amounts. As in the past, the administration may not exceed the authorized amounts (as set forth in the tables or, if unchanged from the administration request, as set forth in budget justification documents of the Department of Defense), without a reprogramming action in accordance with established procedures. Unless noted in this report, funding changes to the budget request are made without prejudice.

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SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

Limitation on availability of funds for the Army Logistics Modernization Program (sec. 311)

The committee recommends a provision that would prohibit the expenditure of any funds for continuing the Army Logistics Modernization Program (LMP), other than $6.9 million in operation and maintenance funds, until the Deputy Secretary of Defense certifies that the program has adequately addressed its many shortcomings. The budget request included $109.5 million for the development, fielding, and operation of the Army LMP. Costs have doubled over the past 2 years in a program that was initially designed in 1999 as a fixed-price contract. The fiscal year 2007 funds represent just a fraction of the total funds now required. Since contract award in 1999, the program has fallen behind schedule by years, and only a fraction of logistics community is currently being served by the LMP.

In a 2005 Government Accountability Office (GAO) report, entitled `Army Depot Maintenance: Ineffective Oversight of Army Depot Operations,' the GAO indicated that Tobyhanna Army Depot's experience with the LMP--the only Army depot to have implemented LMP--is troubling. The GAO concluded that the Tobyhanna Army Depot still lacks financial and management reports required for depot operations. The system inefficiently causes orders of excess materials to be made. There is no depot level repairable process in LMP, and the lack of on-site support by the LMP contractor is causing delays in fixing systems problems.

Legacy systems, which currently handle the majority of transactions within the logistics community, are annually under resourced while awaiting the implementation of the LMP solution. Additionally, other promising logistics transformation programs, such as Product Lifecycle Management (PLM+), remain under funded due to scarce resources for information technology transformation. The committee expects that the Chairman of the Defense Business Systems Management Committee will review the requirements for, and performance of, the LMP as part of the larger logistics modernization efforts underway within the Army and the Department of Defense. Only after the Chairman certifies that continuing the LMP is in the best interests of the Army, the Department, and the taxpayer, may the Army expend any fiscal year 2007 funds on the Army LMP.

Availability of funds for exhibits for the national museums of the Armed Forces (sec. 312)

The committee recommends a provision that would make $3.0 million of Operations and Maintenance appropriated to each armed force available to each Secretary of a military department for education and training purposes to contract with the entity established to support the official national museum for each armed force. The funds would be available for the acquisition, installation, and maintenance of exhibits in each museum. This provision would also authorize the Secretary of each military department to accept amounts as reimbursement from the entity and to credit those reimbursements to the account used to cover the costs incurred by the Secretary.

Limitation on financial management improvement and audit initiatives within the Department of Defense (sec. 313)

The committee recommends a provision that would prohibit the Department of Defense from obligating or expending any funds for financial management improvement activities related to the Department's preparation, processing, or auditing of financial statements until the Secretary of Defense submits to the congressional defense committees a determination that each activity proposed to be funded would likely result in real and sustainable improvements in the Department's financial management systems and controls.

The committee believes that the most effective way to fix the Department's financial management problems is to address the root problems by fixing the Department's business systems and processes so that they provide timely, reliable, and complete data for management purposes. By requiring that the Department pursue audit activities only in accordance with a comprehensive financial management improvement plan that coordinates such activities with needed systems improvements, the provision would ensure that the Department first addresses the underlying problems with its systems and processes.

Limitation on availability of operation and maintenance funds for the management headquarters of the Defense Information Systems Agency (sec. 314)

The committee recommends a provision that would make available only 50 percent of the operation and maintenance funding for the management headquarters function of the Defense Information Management Agency until the Secretary of Defense submits to Congress the report on an acquisition strategy for commercial satellite communication services, as required by section 818(b) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-136; 119 Stat. 3385).

In April 2006, the Under Secretary of the Air Force testified before the Subcommittee on Strategic Forces of the Committee on Armed Services that the Department of Defense `depends on a vast network of commercial ground and space-based systems to meet its telecommunications needs.' The Under Secretary also stated that `commercial satellite communications is a large part of the space communication system that supports the warfighter.' The Under Secretary further indicated that commercial satellite services will be `an integrated part of our communications architecture going forward.' This testimony reinforces the previous view of this committee that the Department of Defense requires a strategic approach for acquiring commercial satellite services that aggregates purchases and leverages the purchasing power of the Department, including through the use of multiyear contracting, if appropriate.

SUBTITLE C--ENVIRONMENTAL PROVISIONS

Response plan for remediation of military munitions (sec. 331)

The committee recommends a provision that would require the Department of Defense to set remediation goals for the clean up of unexploded ordnance, discarded military munitions, and munitions constituents. Those goals would be to complete, by not later than September 30, 2007, preliminary assessments at all active installations and formerly used defense sites; to complete, by not later than September 30, 2010, site inspections at all active installations and formerly used defense sites; to achieve, by not later than September 30, 2009, a remedy in place or response complete at all military installations closed or realigned as part of a round of defense base closure and realignment prior to 2005; and to achieve, by a time certain established by the Secretary of Defense, a remedy in place or response complete at all active installations and formerly used defense sites (other than operational ranges) and all military installations realigned or closed under the 2005 round of defense base closure and realignment.

The provision would require the Secretary to submit to the congressional defense committees a comprehensive plan for addressing the remediation of unexploded ordnance by March 1, 2007. The plan would include a schedule, including interim goals, and an estimate of funding required, for achieving the goals for remediation of unexploded ordnance at all active installations and formerly used defense sites (other than operational ranges). The Secretary would be required to update this plan not later than March 15 of 2008, 2009, and 2010. The provision would allow the goals established for unexploded ordnance clean up to be adjusted to respond to unforeseen circumstances as part of the annual update of the plan.

The provision would also require the Secretary to submit a report, to the congressional defense committees, not later than March 1, 2007, on the status of efforts to achieve agreement with relevant regulatory agencies on appropriate reuse standards or principles related to the remediation of unexploded ordnance, discarded military munitions, and munitions constituents.

Extension of authority to grant exemptions to certain requirements (sec. 332)

The committee recommends a provision that would authorize the Administrator of the Environmental Protection Agency (EPA) to grant an exemption for up to 3 years to the Secretary of Defense and the Secretaries of the military departments to transport polychlorinated biphenyls generated by, or under the control of, the Department of Defense into the United States for purposes of their disposal, treatment, or storage. The current period of such waivers is 1 year. This limited expansion of the period in which an exemption may be granted would expire on September 30, 2012, but would not effect the validity of any exemption that had been granted prior to that date. The provision would also require the Secretary of Defense to report by no later than March 1, 2011, to the Committees on Armed Services of the Senate and the House of Representatives and the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce of the House of Representatives, on the remaining volume of polychlorinated biphenyls that may require transportation into the United States for disposal, treatment, or storage, and the efforts made by the Department and other federal agencies to reduce such volume.

The committee notes that the proposed expansion of the waiver period that may be granted to the Secretary of Defense or the Secretaries of the military departments from 1 to 3 years would not change the public notice and comment process required before the Administrator of the EPA is authorized to grant such a waiver.

The committee expects the Department to conduct appropriate planning to provide for the safe, orderly, and predictable storage, disposal, and shipment of polychlorinated biphenyls generated outside the United States by, or under the control of, the Department. The committee does not intend that the expansion of the waiver period from 1 to 3 years, as recommended by this provision, serve as a substitute for such long-term planning.

Research on effects of ocean disposal of munitions (sec. 333)

The committee recommends a provision that would require the Secretary of Defense, in cooperation with the Commandant of the Coast Guard, the Administrator of the National Oceanic and Atmospheric Administration (NOAA), and the heads of other relevant federal agencies, to conduct a historical review of available records to determine the number, size, and probable locations of sites where the armed forces disposed of military munitions in U.S. coastal waters. The Secretary of Defense would be required to periodically, but no less often than annually, submit interim reports to Congress with the updated results of the historical review. The Secretary of Defense would be required to complete the historical review and submit the final report of the findings as part of the annual report to Congress on environmental restoration activities for fiscal year 2009.

The Secretary of Defense would be required to provide information to the Secretary of Commerce to assist NOAA in preparing nautical charts and other navigation materials for coastal waters that identify hazards posed by disposed military munitions to private activities, including commercial shipping and fishing operations. The Secretary of Defense would be required to continue activities to inform potentially affected users of the ocean environment of the possible hazards from contact with disposed military munitions and the proper methods to mitigate such hazards.

The Secretary of Defense would be required to continue to conduct research on the effects on the ocean environment and those who use it of military munitions disposed of in coastal waters. The scope of research would be required to include sampling and analysis of ocean waters and sea beds at or adjacent to representative disposal sites to determine whether the munitions have caused, or are causing, contamination of ocean waters or sea beds; investigation into the long-term effects of seawater exposure on disposed military munitions; investigation into the impacts on the ocean environment, including the public health risks; investigation into the feasibility of removing or otherwise remediating the military munitions; and the development of effective safety measures. In conducting the research, the Secretary of Defense would be required to ensure that the sampling, analysis, and investigations are conducted at representative sites, taking into account depth, water temperature, nature of the military munitions, and relative proximity to onshore populations. At least two sites in areas off the Atlantic coast, the Pacific coast (including Alaska), and the Hawaiian Islands would be required among the representative sites.

If the historical review or the required research indicates that contamination is being released at a particular site, or that the site poses significant risk to public health or safety, the Secretary of Defense would be required to institute appropriate monitoring mechanisms at the site, and report to the congressional defense committees on any additional steps that may be needed to address the release or the risk to public health or safety.

Clarification of multi-year authority to use base closure funds to fund cooperative agreements under Environmental Restoration Program (sec. 334)

The committee recommends a provision that would clarify that cooperative agreements with eligible entities for environmental restoration at defense facilities may extend beyond 2 years when the agreements are funded out of either the Department of Defense Base Closure Account 1990 or the Department of Defense Base Closure Account 2005. The committee notes that under section 2701 of title 10, United States Code, cross-fiscal year agreements for environmental restoration are limited to 2 years. The committee also notes that, for facilities closed or realigned under a round of base closure, environmental restoration is funded out of the base closure account until the account is exhausted. Funds in a base closure account do not expire annually, but continue to be available until the base closure account is exhausted. This provision would clarify that agreements for environmental restoration that are funded from base closure accounts may extend beyond the 2-year limitation that would otherwise apply.

Reimbursement of Environmental Protection Agency for certain costs in connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington (sec. 335)

The committee recommends a provision that would provide discretionary authority to the Secretary of Defense to transfer not more than $111,114.03 to the Moses Lake Wellfield Superfund Site, 10-6J special account, formerly the home of Larson Air Force Base. This payment would be for reimbursement to the U.S. Environmental Protection Agency for costs incurred in overseeing a remedial investigation and feasibility study being performed by the Department of Defense at the former Larson Air Force Base.

SUBTITLE D--REPORTS

Comptroller General report on readiness of the ground forces of the Army and the Marine Corps (sec. 351)

The committee recommends a provision that would require the Government Accountability Office (GAO) to provide an assessment of the readiness of Army and Marine Corps ground forces. The GAO assessment would include: (1) An analysis of the current readiness status of the active and Reserve component ground forces of the Army and the Marine Corps, including a description of any major deficiencies identified, an analysis of the trends in Army and Marine Corps readiness over the past ten years, and a comparison of the current readiness status of those forces to these historical readiness patterns; (2) an assessment of the ability of the Army and Marine Corps to provide trained and ready forces for ongoing operations as well as their other worldwide commitments; (3) an analysis of the availability of equipment for training by units in the United States in configurations comparable to that being used in ongoing operations; (4) an analysis of the current and projected `reset' requirement for repair or replacement of equipment due to ongoing operations and the impact of that required maintenance on the availability of equipment for training; (5) an assessment of the current personnel tempo of those forces, including an analysis of particular occupational specialties that are experiencing unusually high or low deployment rates and the retention rates in those specialties; (6) an assessment of each service's efforts to mitigate the impact of high operational tempos, including cross-leveling of personnel and equipment or cross-training of personnel or units; and (7) a description of the current policy being used by each service to govern the mobilization of Reserve component personnel and an analysis of the number of Reserve component personnel in each service that are projected to be available for deployment under those policies.

U.S. forces are engaged at extremely high levels at home and abroad. In particular, ongoing operational commitments in Iraq and Afghanistan are requiring significant deployments by and a high operational tempo of U.S. ground forces. These units must fulfill these deployment requirements in addition to other demands including the ongoing and impending redeployment of forces from overseas locations and the conversion of Army brigades to a new modular configuration. In addition to the impact on individual service members and their families, the committee is concerned about the impact of sustained high operational tempo due to ongoing operations on the readiness of our forces and their ability to respond to other events or threats. On March 15, 2006, the Subcommittee on Readiness and Management Support held a hearing on the readiness of our ground forces with Army and Marine Corps representatives. This hearing identified a number of readiness challenges and the steps being taken to address those concerns.

The committee also notes that the GAO has already undertaken an analysis of some of these issues, and expects the report required by this provision to build on the work GAO has already provided to the committee. While detailed information on readiness is classified, the issues being assessed in this report are of enormous importance to the Department of Defense and the Congress and should be available for open discussion to the extent that classification rules allow. Therefore this report should be provided in both classified and unclassified form. The various elements required by this report may be provided separately, as long as all the required elements are submitted before March 1, 2007, and the information used to satisfy the reporting requirement is current.

SUBTITLE E--WORKPLACE AND DEPOT ISSUES

Minimum capital investment levels for public depots serviced by working capital funds (sec. 361)

The committee recommends a provision that would require a public depot that utilizes a working capital fund to invest, at a minimum, 6 percent of the actual total revenues from the previous year for capital investment within that depot, as defined by DOD financial regulations (DOD Financial Management Regulation 700.14R of June 2004). The Secretary of Defense would have authority to grant a waiver to a service if that minimum is not met, but then must report to the congressional defense committees the reason(s) for missing the goal, and a plan to return to the stipulated minimum level.

Department of Defense working capital funds are designed to provide flexibility, accountability, and visibility for critical defense customers and process owners. Within public depots, these funds are used to meet customer needs, operate the depots, and maintain the depot facilities. While the working capital fund mechanism may provide a stable work flow and funding stream, there have also been adverse consequences of under investment in depot infrastructure, equipment, information technology, and software.

While focusing on keeping overhead costs down, working capital funds have chronically under funded capital investment. The Department has no established baseline or benchmark from which to evaluate the level of investment funding in its public depots. Further, each military department has stated that oversight of capital investment programs tends to reduce the level of funding during budget deliberations, not enhance it. For example, in 2002, the Air Force recognized that their public depots were suffering from chronic under funding of its capital budgets. The Air Force responded by establishing a Depot Maintenance Strategy and Master Plan. One of the central components was the commitment of the Air Force to allocate $150.0 million each fiscal year for 6 years, beginning in fiscal year 2004, for recapitalization and investment, including the procurement of technologically advanced facilities and equipment, of the nation's three Air Force depots. The key facet of the Air Force strategy was to double the amount of investment, raising investment spending to 6 percent of total revenues--a documented private depot industry benchmark.

Even while attempting to address the problem of chronic under funding, the Air Force plan only goes through 2009. Further, that plan falls short of the benchmark of 6 percent because the Air Force uses low future revenue estimates from which to determine their benchmark figure and includes funding for basic property maintenance as part of its calculation of capital investment--funding that is not defined as capital investment.

The committee expects that this provision will address the chronic under funding of capital investment in public depots serviced by working capital funds. The committee further expects the Air Force to fully fund the projects identified in its 6 year capital investment plan.

Permanent exclusion of certain contract expenditures from percentage limitation on the performance of depot-level maintenance (sec. 362)

The committee recommends a provision that would make permanent the exclusion of work performed by non-federal personnel at designated Centers of Industrial and Technical Excellence from the 50 percent limitation on contracting for depot maintenance (10 U.S.C. 2466(a)) outside the Department of Defense, pursuant to a public-private partnership. Currently the exemption is limited to funds made available in fiscal years 2003 through 2009.

Additional exception to prohibition on contractor performance of firefighting functions (sec. 363)

The committee recommends a provision that would provide an exception to the prohibition on contracting for the performance of firefighting functions on any military installation or facility. This exception would only apply to contractor performance of firefighting functions to respond to nonstructural fires that occur on wildlands, such as ranges and forests, located on military installations, and to conduct preventative measures such as maintenance of firebreaks, and removal of underbrush.

This provision would reduce or eliminate the reliance on members of the armed forces to respond to such fires, and permit needed supplementation of the civilian workforce for wildland firefighting. Other federal agencies with land management responsibilities, such as the U.S. Forest Service and the Bureau of Land Management, have the authority provided for in this provision.

Temporary security guard services for certain work caused by realignment of military installations under the base closure laws (sec. 364)

The committee recommends a provision that would allow a military department to contract for security-guard services at installations being realigned, for a period not to exceed 1 year, to safely relocate munitions and associated equipment as well as high-value items located in temporary storage areas.

SUBTITLE F--OTHER MATTERS

Recycling of military munitions (sec. 371)

The committee recommends a provision that would authorize the Secretary of the Army to establish a separate program to sell recyclable munitions materials resulting from the demilitarization of conventional military munitions in the United States and its possessions. This program would be exempt from the provisions of title 40, United States Code, relating to the disposal of property by executive agencies. The recyclable munitions material would include materials such as brass, scrap metal, propellants, and explosives. The proceeds from sales would be credited to the funds available to the Army for reclamation, recycling, and reuse of conventional military munitions. This process would be consistent with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) and its implementing regulations. This section would assist the Army in addressing the increasing costs associated with its conventional munitions demilitarization program.

Incentives clauses in chemical demilitarization contracts (sec. 372)

The committee recommends a provision that would provide the Secretary of Defense authority to include an incentives clause in any contract for the destruction of the U.S. stockpile of lethal chemical agents and munitions in order to accelerate the safe elimination of the U.S. chemical weapons stockpile and to reduce the total cost of the chemical demilitarization program by affording the contractor an opportunity to share in the life cycle cost savings that the U.S. government would realize by early completion of destruction operations and facility closure. The provision would limit the amount of incentive payments at each facility to $110.0 million for completion of destruction operations within the specified target incentive range, and to $55.0 million for completion of facility closure activities within the specified target incentive range. The provision would require that this authority be exercised consistent with the Secretary's obligation under law to provide for maximum protection for the environment, the general public, and the personnel who are involved in the destruction of the lethal chemical agents and munitions. The authority to include an incentives clause in a contract would be subject to the availability of appropriations for that purpose.

The committee notes that this authority is intended to be available for all elements of the chemical demilitarization program, including the Chemical Stockpile Disposal Project, the Alternative Technologies and Approaches Project, and the Assembled Chemical Weapons Alternative Program.

The committee notes its deep disappointment in the notification from the Secretary dated April 10, 2006, that the United States will not be able to meet the Chemical Weapons Convention extended destruction deadline of April 29, 2012, for the complete destruction of the U.S. chemical weapons stockpile. The committee notes the Secretary's commitment in the notification that `The Department will continue working diligently to minimize the time to complete destruction without sacrificing safety and security. We will also continue requesting resources needed to complete destruction as close to April 2012 as practicable.' The committee strongly concurs in those sentimen