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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    104-344
_______________________________________________________________________
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 1996, AND FOR OTHER PURPOSES
                                _______
               November 15, 1995.--Ordered to be printed
_______________________________________________________________________
 Mr. Young of Florida, from the committee of conference, submitted the 
                               following
                           CONFERENCE REPORT
                        [To accompany H.R. 2126]
      The Committee of Conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2126) ``making appropriations for the Department of Defense for 
the fiscal year ending September 30, 1996, and for other 
purposes,'' having met, after further full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert: That the following sums are appropriated, 
out of any money in the Treasury not otherwise appropriated, 
for the fiscal year ending September 30, 1996, for military 
functions administered by the Department of Defense, and for 
other purposes, namely:
                                TITLE I
                           MILITARY PERSONNEL
                        Military Personnel, Army
    For pay, allowances, individual clothing, interest on 
deposits, gratuities, permanent change of station travel 
(including all expenses thereof for organizational movements), 
and expenses of temporary duty travel between permanent duty 
stations, for members of the Army on active duty (except 
members of reserve components provided for elsewhere), cadets, 
and aviation cadets; and for payments pursuant to section 156 
of Public Law 97-377, as amended (42 U.S.C. 402 note), to 
section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
and to the Department of Defense Military Retirement Fund; 
$19,946,187,000.
                        Military Personnel, Navy
    For pay, allowances, individual clothing, interest on 
deposits, gratuities, permanent change of station travel 
(including all expenses thereof for organizational movements), 
and expenses of temporary duty travel between permanent duty 
stations, for members of the Navy on active duty (except 
members of the Reserve provided for elsewhere), midshipmen, and 
aviation cadets; and for payments pursuant to section 156 of 
Public Law 97-377, as amended (42 U.S.C. 402 note), to section 
229(b) of the Social Security Act (42 U.S.C. 429(b)), and to 
the Department of Defense Military Retirement Fund; 
$17,008,563,000.
                    Military Personnel, Marine Corps
    For pay, allowances, individual clothing, interest on 
deposits, gratuities, permanent change of station travel 
(including all expenses thereof for organizational movements), 
and expenses of 
temporary duty travel between permanent duty stations, for 
members of the Marine Corps on active duty (except members of 
the Reserve provided for elsewhere); and for payments pursuant 
to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), to section 229(b) of the Social Security Act (42 U.S.C. 
429(b)), and to the Department of Defense Military Retirement 
Fund; $5,885,740,000.
                     Military Personnel, Air Force
    For pay, allowances, individual clothing, interest on 
deposits, gratuities, permanent change of station travel 
(including all expenses thereof for organizational movements), 
and expenses of temporary duty travel between permanent duty 
stations, for members of the Air Force on active duty (except 
members of reserve components provided for elsewhere), cadets, 
and aviation cadets; and for payments pursuant to section 156 
of Public Law 97-377, as amended (42 U.S.C. 402 note), to 
section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
and to the Department of Defense Military Retirement Fund; 
$17,207,743,000.
                        Reserve Personnel, Army
    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army Reserve 
on active duty under sections 10211, 10302, and 3038 of title 
10, United States Code, or while serving on active duty under 
section 12301(d) of title 10, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty or other duty, and 
for members of the Reserve Officers' Training Corps, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $2,122,466,000.
                        Reserve Personnel, Navy
    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Navy Reserve 
on active duty under section 10211 of title 10, United States 
Code, or while serving on active duty under section 12301(d) of 
title 10, United States Code, in connection with performing 
duty specified in section 12310(a) of title 10, United States 
Code, or while undergoing reserve training, or while performing 
drills or equivalent duty, and for members of the Reserve 
Officers' Training Corps, and expenses authorized by section 
16131 of title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund; $1,355,523,000.
                    Reserve Personnel, Marine Corps
    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Marine Corps 
Reserve on active duty under section 10211 of title 10, United 
States Code, or while serving on active duty under section 
12301(d) of title 10, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty, and for members of 
the Marine Corps platoon leaders class, and expenses authorized 
by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund; 
$378,151,000.
                      Reserve Personnel, Air Force
    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air Force 
Reserve on active duty under sections 10211, 10305, and 8038 of 
title 10, United States Code, or while serving on active duty 
under section 12301(d) of title 10, United States Code, in 
connection with performing duty specified in section 12310(a) 
of title 10, United States Code, or while undergoing reserve 
training, or while performing drills or equivalent duty or 
other duty, and for members of the Air Reserve Officers' 
Training Corps, and expenses authorized by section 16131 of 
title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund; $784,586,000.
                     National Guard Personnel, Army
    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army National 
Guard while on duty under section 10211, 10302, or 12402 of 
title 10 or section 708 of title 32, United States Code, or 
while serving on duty under section 12301(d) of title 10 or 
section 502(f) of title 32, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $3,242,422,000.
                  National Guard Personnel, Air Force
    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air National 
Guard on duty under section 10211, 10305, or 12402 of title 10 
or section 708 of title 32, United States Code, or while 
serving on duty under section 12301(d) of title 10 or section 
502(f) of title 32, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund; $1,259,627,000.
                                TITLE II
                       OPERATION AND MAINTENANCE
                    Operation and Maintenance, Army
                     (including transfer of funds)
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Army, as authorized by law; 
and not to exceed $14,437,000 can be used for emergencies and 
extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Army, and payments may be 
made on his certificate of necessity for confidential military 
purposes; $18,321,965,000 and, in addition, $50,000,000 shall 
be derived by transfer from the National Defense Stockpile 
Transaction Fund.
                    Operation and Maintenance, Navy
                     (including transfer of funds)
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Navy and the Marine Corps, as 
authorized by law; and not to exceed $4,151,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of the Navy, and 
payments may be made on his certificate of necessity for 
confidential military purposes; $21,279,425,000 and, in 
addition, $50,000,000 shall be derived by transfer from the 
National Defense Stockpile Transaction Fund: Provided, That of 
the funds appropriated under this heading, $595,100,000 shall 
be available only for the liquidation of prior year accumulated 
operating losses of the Department of the Navy activities 
included in the Defense Business Operations Fund.
                Operation and Maintenance, Marine Corps
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Marine Corps, as authorized by 
law; $2,392,522,000.
                  Operation and Maintenance, Air Force
                     (including transfer of funds)
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Air Force, as authorized by 
law; and not to exceed $8,326,000 can be used for emergencies 
and extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Air Force, and payments may 
be made on his certificate of necessity for confidential 
military purposes; $18,561,267,000 and, in addition, 
$50,000,000 shall be derived by transfer from the National 
Defense Stockpile Transaction Fund: Provided, That the 
Secretary of the Air Force may acquire all right, title, and 
interest of any party in and to parcels of real property, 
including improvements thereon, consisting of not more than 92 
acres, located near King Salmon Air Force Station for the 
purpose of conducting a response action in accordance with the 
Comprehensive Environmental Response, Compensation, and 
Liability Act (42 U.S.C. 9601-9675) and the Air Force 
Installation Restoration Program.
                Operation and Maintenance, Defense-Wide
                     (including transfer of funds)
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of activities and agencies of the 
Department of Defense (other than the military departments), as 
authorized by law; $10,388,595,000, of which not to exceed 
$25,000,000 may be available for the CINC initiative fund 
account; and of which not to exceed $28,588,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of Defense, and payments 
may be made on his certificate of necessity for confidential 
military purposes: Provided, That of the funds appropriated 
under this heading, $20,000,000 shall be made available only 
for use in federally owned education facilities located on 
military installations for the purpose of transferring title of 
such facilities to the local education agency: Provided 
further, That of the funds available under this heading, 
$300,000,000 shall be available only for transfer to the Coast 
Guard in support of the national security functions of the 
Coast Guard, while operating in conjunction with and in support 
of the Navy: Provided further, That funds transferred pursuant 
to this section are in addition to transfer authority provided 
elsewhere in this Act.
                Operation and Maintenance, Army Reserve
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Army Reserve; repair of facilities 
and equipment; hire of passenger motor vehicles; travel and 
transportation; care of the dead; recruiting; procurement of 
services, supplies, and equipment; and communications; 
$1,119,191,000.
                Operation and Maintenance, Navy Reserve
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Navy Reserve; repair of facilities 
and equipment; hire of passenger motor vehicles; travel and 
transportation; care of the dead; recruiting; procurement of 
services, supplies, and equipment; and communications; 
$859,542,000.
            Operation and Maintenance, Marine Corps Reserve
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Marine Corps Reserve; repair of 
facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications; $100,283,000.
              Operation and Maintenance, Air Force Reserve
    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Air Force Reserve; repair of 
facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications; $1,519,287,000.
             Operation and Maintenance, Army National Guard
    For expenses of training, organizing, and administering the 
Army National Guard, including medical and hospital treatment 
and related expenses in non-Federal hospitals; maintenance, 
operation, and repairs to structures and facilities; hire of 
passenger motor vehicles; personnel services in the National 
Guard Bureau; travel expenses (other than mileage), as 
authorized by law for Army personnel on active duty, for Army 
National Guard division, regimental, and battalion commanders 
while inspecting units in compliance with National Guard Bureau 
regulations when specifically authorized by the Chief, National 
Guard Bureau; supplying and equipping the Army National Guard 
as authorized by law; and expenses of repair, modification, 
maintenance, and issue of supplies and equipment (including 
aircraft); $2,440,808,000.
             Operation and Maintenance, Air National Guard
    For operation and maintenance of the Air National Guard, 
including medical and hospital treatment and related expenses 
in non-Federal hospitals; maintenance, operation, repair, and 
other necessary expenses of facilities for the training and 
administration of the Air National Guard, including repair of 
facilities, maintenance, operation, and modification of 
aircraft; transportation of things; hire of passenger motor 
vehicles; supplies, materials, and equipment, as authorized by 
law for the Air National Guard; and expenses incident to the 
maintenance and use of supplies, materials, and equipment, 
including such as may be furnished from stocks under the 
control of agencies of the Department of Defense; travel 
expenses (other than mileage) on the same basis as authorized 
by law for Air National Guard personnel on active Federal duty, 
for Air National Guard commanders while inspecting units in 
compliance with National Guard Bureau regulations when 
specifically authorized by the Chief, National Guard Bureau; 
$2,776,221,000.
          United States Court of Appeals for the Armed Forces
    For salaries and expenses necessary for the United States 
Court of Appeals for the Armed Forces; $6,521,000, of which not 
to exceed $2,500 can be used for official representation 
purposes.
                   Environmental Restoration, Defense
                     (including transfer of funds)
    For the Department of Defense; $1,422,200,000, to remain 
available until transferred: Provided, That the Secretary of 
Defense shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of Defense, or for similar purposes (including 
programs and operations at sites formerly used by the 
Department of Defense), transfer the funds made available by 
this appropriation to other appropriations made available to 
the Department of Defense, to be merged with and to be 
available for the same purposes and for the same period as the 
appropriations of funds to which transferred, as follows:
            Operation and Maintenance, Army, $631,900,000;
            Operation and Maintenance, Navy, $365,300,000;
            Operation and Maintenance, Air Force, $368,000,000; 
        and
            Operation and Maintenance, Defense-wide, 
        $57,000,000:
Provided further, That upon a determination that all or part of 
the funds transferred from this appropriation are not necessary 
for the purposes provided herein, such amounts may be 
transferred back to this appropriation.
                            Summer Olympics
    For logistical support and personnel services (other than 
pay and non-travel-related allowances of members of the Armed 
Forces of the United States, except for members of the reserve 
components thereof called or ordered to active duty to provide 
support for the 1996 Games of the XXVI Olympiad to be held in 
Atlanta, Georgia) provided by any component of the Department 
of Defense to the 1996 Games of the XXVI Olympiad; $15,000,000: 
Provided, That funds appropriated under this heading shall 
remain available for obligation until September 30, 1997.
             Overseas Humanitarian, Disaster, and Civic Aid
    For expenses relating to the Overseas Humanitarian, 
Disaster, and Civic Aid programs of the Department of Defense 
(consisting of the programs provided under sections 401, 402, 
404, 2547, and 2551 of title 10, United States Code); 
$50,000,000: Provided, That of the funds available under this 
heading, $20,000,000 shall be available for training and 
activities related to the clearing of landmines for 
humanitarian purposes.
                  Former Soviet Union Threat Reduction
    For assistance to the republics of the former Soviet Union, 
including assistance provided by contract or by grants, for 
facilitating the elimination and the safe and secure 
transportation and storage of nuclear, chemical and other 
weapons; for establishing programs to prevent the proliferation 
of weapons, weapons components, and weapon-related technology 
and expertise; for programs relating to the training and 
support of defense and military personnel for demilitarization 
and protection of weapons, weapons components and weapons 
technology and expertise; $300,000,000 to remain available 
until expended.
                               TITLE III
                              PROCUREMENT
                       Aircraft Procurement, Army
    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $1,558,805,000, to remain 
available for obligation until September 30, 1998: Provided, 
That not less than nine UH-60L helicopters shall be made 
available to the Army National Guard for the medical evacuation 
mission.
                       Missile Procurement, Army
    For construction, procurement, production, modification, 
and modernization of missiles, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $865,555,000, to remain 
available for obligation until September 30, 1998.
        Procurement of Weapons and Tracked Combat Vehicles, Army
    For construction, procurement, production, and modification 
of weapons and tracked combat vehicles, equipment, including 
ordnance, spare parts, and accessories therefor; specialized 
equipment and training devices; expansion of public and private 
plants, including the land necessary therefor, for the 
foregoing purposes, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $1,652,745,000, to remain available for 
obligation until September 30, 1998.
                    Procurement of Ammunition, Army
    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854, 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $1,110,685,000, to remain available for 
obligation until September 30, 1998.
                        Other Procurement, Army
    For construction, procurement, production, and modification 
of vehicles, including tactical, support, and nontracked combat 
vehicles; the purchase of not to exceed 41 passenger motor 
vehicles for replacement only; communications and electronic 
equipment; other support equipment; spare parts, ordnance, and 
accessories therefor; specialized equipment and training 
devices; expansion of public and private plants, including the 
land necessary therefor, for the foregoing purposes, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; and procurement 
and installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes; $2,769,443,000, to remain 
available for obligation until September 30, 1998.
                       Aircraft Procurement, Navy
    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
spare parts, and accessories therefor; specialized equipment; 
expansion of public and private plants, including the land 
necessary therefor, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; $4,589,394,000, to remain available for 
obligation until September 30, 1998.
                       Weapons Procurement, Navy
    For construction, procurement, production, modification, 
and modernization of missiles, torpedoes, other weapons, and 
related support equipment including spare parts, and 
accessories therefor; expansion of public and private plants, 
including the land necessary therefor, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; $1,669,827,000, to remain 
available for obligation until September 30, 1998.
            Procurement of Ammunition, Navy and Marine Corps
    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854, 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $430,053,000, to remain available for 
obligation until September 30, 1998.
                   Shipbuilding and Conversion, Navy
    For expenses necessary for the construction, acquisition, 
or conversion of vessels as authorized by law, including armor 
and armament thereof, plant equipment, appliances, and machine 
tools and installation thereof in public and private plants; 
reserve plant and Government and contractor-owned equipment 
layaway; procurement of critical, long leadtime components and 
designs for vessels to be constructed or converted in the 
future; and expansion of public and private plants, including 
land necessary therefore, and such lands and interests therein, 
may be acquired, and construction prosecuted thereon prior to 
approval of title, as follows:
            For continuation of the SSN-21 attack submarine 
        program, $700,000,000;
            NSSN-1 (AP), $704,498,000;
            NSSN-2 (AP), $100,000,000;
            CVN Refuelings, $221,988,000;
            DDG-51 destroyer program, $2,169,257,000;
            LHD-1 amphibious assault ship program, 
        $1,300,000,000;
            LPD-17 amphibious transport dock ship, 
        $974,000,000;
            Fast patrol craft, $9,500,000;
            T-AGS-64 multi-purpose oceanographic survey ship, 
        $16,000,000;
            LSD-52, $20,000,000; and
            For craft, outfitting, post delivery, conversions, 
        and first destination transportation, $428,715,000;
In all: $6,643,958,000, to remain available for obligation 
until September 30, 2000: Provided, That additional obligations 
may be incurred after September 30, 2000, for engineering 
services, tests, evaluations, and other such budgeted work that 
must be performed in the final stage of ship construction: 
Provided further, That none of the funds herein provided for 
the construction or conversion of any naval vessel to be 
constructed in shipyards in the United States shall be expended 
in foreign facilities for the construction of major components 
of such vessel: Provided further, That none of the funds herein 
provided shall be used for the construction of any naval vessel 
in foreign shipyards.
                        Other Procurement, Navy
    For procurement, production, and modernization of support 
equipment and materials not otherwise provided for, Navy 
ordnance (except ordnance for new aircraft, new ships, and 
ships authorized for conversion); the purchase of not to exceed 
252 passenger motor vehicles for replacement only; expansion of 
public and private plants, including the land necessary 
therefor, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon prior to approval 
of title; and procurement and installation of equipment, 
appliances, and machine tools in public and private plants; 
reserve plant and Government and contractor-owned equipment 
layaway; $2,483,581,000, to remain available for obligation 
until September 30, 1998.
                       Procurement, Marine Corps
    For expenses necessary for the procurement, manufacture, 
and modification of missiles, armament, military equipment, 
spare parts, and accessories therefor; plant equipment, 
appliances, and machine tools, and installation thereof in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; vehicles for the Marine 
Corps, including the purchase of not to exceed 194 passenger 
motor vehicles for replacement only; and expansion of public 
and private plants, including land necessary therefor, and such 
lands and interests therein, may be acquired and construction 
prosecuted thereon prior to approval of title; $458,947,000, to 
remain available for obligation until September 30, 1998.
                    Aircraft Procurement, Air Force
    For construction, procurement, and modification of aircraft 
and equipment, including armor and armament, specialized ground 
handling equipment, and training devices, spare parts, and 
accessories therefor; specialized equipment; expansion of 
public and private plants, Government-owned equipment and 
installation thereof in such plants, erection of structures, 
and acquisition of land, for the foregoing purposes, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon prior to approval of title; reserve plant 
and Government and contractor-owned equipment layaway; and 
other expenses necessary for the foregoing purposes including 
rents and transportation of things; $7,367,983,000, to remain 
available for obligation until September 30, 1998.
                     Missile Procurement, Air Force
    For construction, procurement, and modification of 
missiles, spacecraft, rockets, and related equipment, including 
spare parts and accessories therefor, ground handling 
equipment, and training devices; expansion of public and 
private plants, Government-owned equipment and installation 
thereof in such plants, erection of structures, and acquisition 
of land, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes including rents 
and transportation of things; $2,943,931,000, to remain 
available for obligation until September 30, 1998.
                  Procurement of Ammunition, Air Force
    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854, 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes; $338,800,000, to remain available for 
obligation until September 30, 1998.
                      Other Procurement, Air Force
    For procurement and modification of equipment (including 
ground guidance and electronic control equipment, and ground 
electronic and communication equipment), and supplies, 
materials, and spare parts therefor, not otherwise provided 
for; the purchase of not to exceed 385 passenger motor vehicles 
for replacement only; the purpose of 1 vehicle required for 
physical security of personnel, notwithstanding price 
limitations applicable to passenger vehicles but not to exceed 
$260,000 per vehicle; and expansion of public and private 
plants, Government-owned equipment and installation thereof in 
such plants, erection of structures, and acquisition of land, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon, 
prior to approval of title; reserve plant and Government and 
contractor-owned equipment layaway; $6,284,230,000, to remain 
available for obligation until September 30, 1998.
                       Procurement, Defense-Wide
    For expenses of activities and agencies of the Department 
of Defense (other than the military departments) necessary for 
procurement, production, and modification of equipment, 
supplies, materials, and spare parts therefor, not otherwise 
provided for; the purchase of not to exceed 451 passenger motor 
vehicles, of which 447 shall be for replacement only; expansion 
of public and private plants, equipment, and installation 
thereof in such plants, erection of structures, and acquisition 
of land for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; reserve plant and 
Government and contractor-owned equipment layaway; 
$2,124,379,000, to remain available for obligation until 
September 30, 1998.
                  National Guard and Reserve Equipment
    For procurement of aircraft, missiles, tracked combat 
vehicles, ammunition, other weapons, and other procurement for 
the reserve components of the Armed Forces; $777,000,000, to 
remain available for obligation until September 30, 1998: 
Provided, That the Chiefs of the Reserve and National Guard 
components shall, not later than 30 days after the enactment of 
this Act, individually submit to the congressional defense 
committees the modernization priority assessment for their 
respective Reserve or National Guard component.
                                TITLE IV
               RESEARCH, DEVELOPMENT, TEST AND EVALUATION
            Research, Development, Test and Evaluation, Army
    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, as authorized by law; $4,870,684,000, to remain 
available for obligation until September 30, 1997.
            Research, Development, Test and Evaluation, Navy
    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, as authorized by law; $8,748,132,000, to remain 
available for obligation until September 30, 1997: Provided, 
That of the funds provided in Public Law 103-335, in title IV, 
under the heading ``Research, Development, Test and Evaluation, 
Navy'', $5,000,000 shall be made available as a grant only to 
the Marine and Environmental Research and Training Station 
(MERTS) for laboratory and other efforts associated with 
research, development, and other programs of major importance 
to the Department of Defense: Provided further, That funds 
appropriated in this paragraph which are available for the V-22 
may be used to meet unique requirements of the Special 
Operations Forces.
         Research, Development, Test and Evaluation, Air Force
    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, as authorized by law; $13,126,567,000, to remain 
available for obligation until September 30, 1997: Provided, 
That of the funds made available in this paragraph, $25,000,000 
shall be only for development of reusable launch vehicle 
technologies: Provided further, That not less than $9,500,000 
of the funds appropriated in this paragraph shall be made 
available only for the Joint Seismic Program and the Global 
Seismographic Network.
        Research, Development, Test and Evaluation, Defense-Wide
    For expenses of activities and agencies of the Department 
of Defense (other than the military departments), necessary for 
basic and applied scientific research, development, test and 
evaluation; advanced research projects as may be designated and 
determined by the Secretary of Defense, pursuant to law; 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, as authorized by law; $9,411,057,000, to remain 
available for obligation until September 30, 1997: Provided, 
That not less than $200,442,000 of the funds appropriated in 
this paragraph shall be made available only for the Sea-Based 
Wide Area Defense (Navy Upper-Tier) program: Provided further, 
That the funds made available under the second proviso under 
this heading in Public Law 103-335 (108 Stat. 2613) shall also 
be available to cover the reasonable costs of the 
administration of loan guarantees referred to in that proviso 
and shall be available to cover such costs of administration 
and the costs of such loan guarantees until September 30, 1998.
               Developmental Test and Evaluation, Defense
    For expenses, not otherwise provided for, of independent 
activities of the Director, Test and Evaluation in the 
direction and supervision of developmental test and evaluation, 
including performance and joint developmental testing and 
evaluation; and administrative expenses in connection 
therewith; $251,082,000, to remain available for obligation 
until September 30, 1997.
                Operational Test and Evaluation, Defense
    For expenses, not otherwise provided for, necessary for the 
independent activities of the Director, Operational Test and 
Evaluation in the direction and supervision of operational test 
and evaluation, including initial operational test and 
evaluation which is conducted prior to, and in support of, 
production decisions; joint operational testing and evaluation; 
and administrative expenses in connection therewith; 
$22,587,000, to remain available for obligation until September 
30, 1997.
                                TITLE V
                     REVOLVING AND MANAGEMENT FUNDS
                    Defense Business Operations Fund
    For the Defense Business Operations Fund; $878,700,000.
                     National Defense Sealift Fund
    For National Defense Sealift Fund programs, projects, and 
activities, and for expenses of the National Defense Reserve 
Fleet, as established by section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App 1744); $1,024,220,000, to remain 
available until expended: Provided, That none of the funds 
provided in this paragraph shall be used to award a new 
contract that provides for the acquisition of any of the 
following major components unless such components are 
manufactured in the United States: auxiliary equipment, 
including pumps, for all ship-board services; propulsion system 
components (that is; engines, reduction gears, and propellers); 
shipboard cranes; and spreaders for shipboard cranes: Provided 
further, That the exercise of an option in a contract awarded 
through the obligation of previously appropriated funds shall 
not be considered to be the award of a new contract: Provided 
further, That the Secretary of the military department 
responsible for such procurement may waive this restriction on 
a case-by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate, that adequate domestic supplies are not available to 
meet Department of Defense requirements on a timely basis and 
that such an acquisition must be made in order to acquire 
capability for national security purposes: Provided further, 
That the Secretary of the Navy may obligate not to exceed 
$110,000,000 from available appropriations to the Navy for the 
procurement of one additional MPS ship.
                                TITLE VI
                  OTHER DEPARTMENT OF DEFENSE PROGRAMS
                         Defense Health Program
    For expenses, not otherwise provided for, for medical and 
health care programs of the Department of Defense, as 
authorized by law; $10,226,358,000, of which $9,938,325,000 
shall be for Operation and maintenance, of which $288,033,000, 
to remain available for obligation until September 30, 1998, 
shall be for Procurement: Provided, That of the funds 
appropriated under this heading, $14,500,000 shall be made 
available for obtaining emergency communications services for 
members of the Armed Forces and their families from the 
American National Red Cross as authorized by law: Provided 
further, That the date for implementation of the nation-wide 
managed care military health services system shall be extended 
to September 30, 1997: Provided further, That of the funds 
provided under this heading, $3,400,000 is available only to 
permit private sector or non-Federal physicians, who have used 
and will use the antibacterial treatment method based upon the 
excretion of dead decaying spherical bacteria to work in 
conjunction with the Walter Reed Army Medical Center on a 
treatment protocol and related studies for Desert Storm 
Syndrome-affected veterans.
           Chemical Agents and Munitions Destruction, Defense
    For expenses, not otherwise provided for, necessary for the 
destruction of the United States stockpile of lethal chemical 
agents and munitions in accordance with the provisions of 
section 1412 of the Department of Defense Authorization Act, 
1986 (50 U.S.C. 1521), and for the destruction of other 
chemical warfare materials that are not in the chemical weapon 
stockpile, $672,250,000, of which $353,850,000 shall be for 
Operation and maintenance, $265,000,000 shall be for 
Procurement to remain available until September 30, 1998, and 
$53,400,000 shall be for Research, development, test and 
evaluation to remain available until September 30, 1997.
         Drug Interdiction and Counter-Drug Activities, Defense
                     (including transfer of funds)
    For drug interdiction and counter-drug activities of the 
Department of Defense, for transfer to appropriations available 
to the Department of Defense for military personnel of the 
reserve components serving under the provisions of title 10 and 
title 32, United States Code; for Operation and maintenance; 
for Procurement; and for Research, development, test and 
evaluation; $688,432,000: Provided, That the funds appropriated 
by this paragraph shall be available for obligation for the 
same time period and for the same purpose as the appropriation 
to which transferred: Provided further, That the transfer 
authority provided in this paragraph is in addition to any 
transfer authority contained elsewhere in this Act.
                    Office of the Inspector General
    For expenses and activities of the Office of the Inspector 
General in carrying out the provisions of the Inspector General 
Act of 1978, as amended; $178,226,000, of which $177,226,000 
shall be for Operation and maintenance, of which not to exceed 
$400,000 is available for emergencies and extraordinary 
expenses to be expended on the approval or authority of the 
Inspector General, and payments may be made on his certificate 
of necessity for confidential military purposes; and of which 
$1,000,000 to remain available until September 30, 1998, shall 
be for Procurement.
                               TITLE VII
                            RELATED AGENCIES
   Central Intelligence Agency Retirement and Disability System Fund
    For payment to the Central Intelligence Agency Retirement 
and Disability System Fund, to maintain proper funding level 
for continuing the operation of the Central Intelligence Agency 
Retirement and Disability System; $213,900,000.
                 National Security Education Trust Fund
    For the purposes of title VIII of Public Law 102-183, 
$7,500,000, to be derived from the National Security Education 
Trust Fund, to remain available until expended: Provided, That 
any individual accepting a scholarship or fellowship from this 
program agrees to be employed by the Department of Defense or 
in the Intelligence Community in accordance with Federal 
employment standards.
               Intelligence Community Management Account
    For necessary expenses of the Intelligence Community 
Management Account; $90,683,000.
     Kaho'olawe Island Conveyance, Remediation, and Environmental 
                         Restoration Trust Fund
    For payment to the Kaho'olawe Island Conveyance, 
Remediation, and Environmental Restoration Trust Fund, as 
authorized by law, $25,000,000, to remain available until 
expended.
                               TITLE VIII
                           GENERAL PROVISIONS
    Sec. 8001. No part of any appropriation contained in this 
Act shall be used for publicity or propaganda purposes not 
authorized by the Congress.
    Sec. 8002. During the current fiscal year, provisions of 
law prohibiting the payment of compensation to, or employment 
of, any person not a citizen of the United States shall not 
apply to personnel of the Department of Defense: Provided, That 
salary increases granted to direct and indirect hire foreign 
national employees of the Department of Defense funded by this 
Act shall not be at a rate in excess of the percentage increase 
authorized by law for civilian employees of the Department of 
Defense whose pay is computed under the provisions of section 
5332 of title 5, United States Code, or at a rate in excess of 
the percentage increase provided by the appropriate host nation 
to its own employees, whichever is higher: Provided further, 
That this section shall not apply to Department of Defense 
foreign service national employees serving at United States 
diplomatic missions whose pay is set by the Department of State 
under the Foreign Service Act of 1980: Provided further, That 
the limitations of this provision shall not apply to foreign 
national employees of the Department of Defense in the Republic 
of Turkey.
    Sec. 8003. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year, unless expressly so provided herein.
    Sec. 8004. No more than 20 per centum of the appropriations 
in this Act which are limited for obligation during the current 
fiscal year shall be obligated during the last two months of 
the fiscal year: Provided, That this section shall not apply to 
obligations for support of active duty training of reserve 
components or summer camp training of the Reserve Officers' 
Training Corps.
                          (transfer of funds)
    Sec. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, 
transfer not to exceed $2,400,000,000 of working capital funds 
of the Department of Defense or funds made available in this 
Act to the Department of Defense for military functions (except 
military construction) between such appropriations or funds or 
any subdivision thereof, to be merged with and to be available 
for the same purposes, and for the same time period, as the 
appropriation or fund to which transferred: Provided, That such 
authority to transfer may not be used unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which funds are requested has been denied by 
Congress: Provided further, That the Secretary of Defense shall 
notify the Congress promptly of all transfers made pursuant to 
this authority or any other authority in this Act: Provided 
further, That no part of the funds in this Act shall be 
available to prepare or present a request to the Committees on 
Appropriations for reprogramming of funds, unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which reprogramming is requested has been denied 
by the Congress.
                          (transfer of funds)
    Sec. 8006. During the current fiscal year, cash balances in 
working capital funds of the Department of Defense established 
pursuant to section 2208 of title 10, United States Code, may 
be maintained in only such amounts as are necessary at any time 
for cash disbursements to be made from such funds: Provided, 
That transfers may be made between such funds and the ``Foreign 
Currency Fluctuations, Defense'' and ``Operation and 
Maintenance'' appropriation accounts in such amounts as may be 
determined by the Secretary of Defense, with the approval of 
the Office of Management and Budget, except that such transfers 
may not be made unless the Secretary of Defense has notified 
the Congress of the proposed transfer. Except in amounts equal 
to the amounts appropriated to working capital funds in this 
Act, no obligations may be made against a working capital fund 
to procure or increase the value of war reserve material 
inventory, unless the Secretary of Defense has notified the 
Congress prior to any such obligation.
    Sec. 8007. Using funds available by this Act or any other 
Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United States 
Code, may implement cost-effective agreements for required 
heating facility modernization in the Kaiserslautern Military 
Community in the Federal Republic of Germany: Provided, That in 
the City of Kaiserslautern such agreements will include the use 
of United States anthracite as the base load energy for 
municipal district heat to the United States Defense 
installations: Provided further, That at Landstuhl Army 
Regional Medical Center and Ramstein Air Base, furnished heat 
may be obtained from private, regional or municipal services, 
if provisions are included for the consideration of United 
States coal as an energy source: Provided further, That none of 
the funds available to the Department of Defense in this Act 
shall be used by the Secretary of a military department to 
purchase coal or coke from foreign nations for use at United 
States defense facilities in Europe when coal from the United 
States is available.
    Sec. 8008. Funds appropriated by this Act may not be used 
to initiate a special access program without prior notification 
30 calendar days in session in advance to the congressional 
defense committees.
    Sec. 8009. None of the funds contained in this Act 
available for the Civilian Health and Medical Program of the 
Uniformed Services shall be available for payments to 
physicians and other non-institutional health care providers in 
excess of the amounts allowed in fiscal year 1995 for similar 
services, except that: (a) for services for which the Secretary 
of Defense determines an increase is justified by economic 
circumstances, the allowable amounts may be increased in 
accordance with appropriate economic index data similar to that 
used pursuant to title XVIII of the Social Security Act; and 
(b) for services the Secretary determines are overpriced based 
on allowable payments under title XVIII of the Social Security 
Act, the allowable amounts shall be reduced by not more than 15 
percent (except that the reduction may be waived if the 
Secretary determines that it would impair adequate access to 
health care services for beneficiaries). The Secretary shall 
solicit public comment prior to promulgating regulations to 
implement this section. Such regulations shall include a 
limitation, similar to that used under title XVIII of the 
Social Security Act, on the extent to which a provider may bill 
a beneficiary an actual charge in excess of the allowable 
amount.
    Sec. 8010. None of the funds provided in this Act shall be 
available to initiate (1) a multiyear contract that employs 
economic order quantity procurement in excess of $20,000,000 in 
any one year of the contract or that includes an unfunded 
contingent liability in excess of $20,000,000, or (2) a 
contract for advance procurement leading to a multiyear 
contract that employs economic order quantity procurement in 
excess of $20,000,000 in any one year, unless the congressional 
defense committees have been notified at least thirty days in 
advance of the proposed contract award: Provided, That no part 
of any appropriation contained in this Act shall be available 
to initiate a multiyear contract for which the economic order 
quantity advance procurement is not funded at least to the 
limits of the Government's liability: Provided further, That no 
part of any appropriation contained in this Act shall be 
available to initiate multiyear procurement contracts for any 
systems or component thereof if the value of the multiyear 
contract would exceed $500,000,000 unless specifically provided 
in this Act: Provided further, That no multiyear procurement 
contract can be terminated without 10-day prior notification to 
the congressional defense committees: Provided further, That 
the execution of multiyear authority shall require the use of a 
present value analysis to determine lowest cost compared to an 
annual procurement.
    Funds appropriated in title III of this Act may be used for 
multiyear procurement contracts as follows:
            UH-60 Blackhawk helicopter;
            Apache Longbow helicopter; and
            M1A2 tank upgrade.
    Sec. 8011. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby 
appropriated pursuant to section 401 of title 10, United States 
Code, for humanitarian and civic assistance costs under chapter 
20 of title 10, United States Code. Such funds may also be 
obligated for humanitarian and civic assistance costs 
incidental to authorized operations and pursuant to authority 
granted in section 401 of chapter 20 of title 10, United States 
Code, and these obligations shall be reported to Congress on 
September 30 of each year: Provided, That funds available for 
operation and maintenance shall be available for providing 
humanitarian and similar assistance by using Civic Action Teams 
in the Trust Territories of the Pacific Islands and freely 
associated states of Micronesia, pursuant to the Compact of 
Free Association as authorized by Public Law 99-239: Provided 
further, That upon a determination by the Secretary of the Army 
that such action is beneficial for graduate medical education 
programs conducted at Army medical facilities located in 
Hawaii, the Secretary of the Army may authorize the provision 
of medical services at such facilities and transportation to 
such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam.
    Sec. 8012. (a) During fiscal year 1996, the civilian 
personnel of the Department of Defense may not be managed on 
the basis of any end-strength, and the management of such 
personnel during that fiscal year shall not be subject to any 
constraint or limitation (known as an end-strength) on the 
number of such personnel who may be employed on the last day of 
such fiscal year.
    (b) The fiscal year 1997 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 1997 Department of 
Defense budget request shall be prepared and submitted to the 
Congress as if subsections (a) and (b) of this provision were 
effective with regard to fiscal year 1997.
    (c) Nothing in this section shall be construed to apply to 
military (civilian) technicians.
    Sec. 8013. None of the funds provided in this Act shall be 
available either to return any IOWA Class Battleships to the 
Naval Register, or to retain the logistical support necessary 
for support of any IOWA Class Battleships in active service.
    Sec. 8014. Notwithstanding any other provision of law, none 
of the funds made available by this Act shall be used by the 
Department of Defense to exceed, outside the fifty United 
States, its territories, and the District of Columbia, 125,000 
civilian workyears: Provided, That workyears shall be applied 
as defined in the Federal Personnel Manual: Provided further, 
That workyears expended in dependent student hiring programs 
for disadvantaged youths shall not be included in this workyear 
limitation.
    Sec. 8015. None of the funds made available by this Act 
shall be used in any way, directly or indirectly, to influence 
congressional action on any legislation or appropriation 
matters pending before the Congress.
    Sec. 8016. None of the funds appropriated for the 
Department of Defense during the current fiscal year and 
hereafter shall be obligated for the pay of any individual who 
is initially employed after the date of enactment of this Act 
as a technician in the administration and training of the Army 
Reserve and the maintenance and repair of supplies issued to 
the Army Reserve unless such individual is also a military 
member of the Army Reserve troop program unit that he or she is 
employed to support. Those technicians employed by the Army 
Reserve in areas other than Army Reserve troop program units 
need only be members of the Selected Reserve.
    Sec. 8017. Notwithstanding any other provision of law, 
during the current fiscal year and hereafter, the Secretaries 
of the Army and Air Force may authorize the retention in an 
active status until age sixty of any person who would otherwise 
be removed from an active status and who is employed as a 
National Guard or Reserve technician in a position in which 
active status in a reserve component of the Army or Air Force 
is required as a condition of that employment.
    Sec. 8018. (a) None of the funds appropriated by this Act 
shall be used to make contributions to the Department of 
Defense Education Benefits Fund pursuant to section 2006(g) of 
title 10, United States Code, representing the normal cost for 
future benefits under section 1415(c) of title 38, United 
States Code, for any member of the armed services who, on or 
after the date of enactment of this Act--
            (1) enlists in the armed services for a period of 
        active duty of less than three years; or
            (2) receives an enlistment bonus under section 308a 
        or 308f of title 37, United States Code,
nor shall any amounts representing the normal cost of such 
future benefits be transferred from the Fund by the Secretary 
of the Treasury to the Secretary of Veterans Affairs pursuant 
to section 2006(d) of title 10, United States Code; nor shall 
the Secretary of Veterans Affairs pay such benefits to any such 
member: Provided, That, in the case of a member covered by 
clause (1), these limitations shall not apply to members in 
combat arms skills or to members who enlist in the armed 
services on or after July 1, 1989, under a program continued or 
established by the Secretary of Defense in fiscal year 1991 to 
test the cost-effective use of special recruiting incentives 
involving not more than nineteen noncombat arms skills approved 
in advance by the Secretary of Defense: Provided further, That 
this subsection applies only to active components of the Army.
    (b) None of the funds appropriated by this Act shall be 
available for the basic pay and allowances of any member of the 
Army participating as a full-time student and receiving 
benefits paid by the Secretary of Veterans Affairs from the 
Department of Defense Education Benefits Fund when time spent 
as a full-time student is credited toward completion of a 
service commitment: Provided, That this subsection shall not 
apply to those members who have reenlisted with this option 
prior to October 1, 1987: Provided further, That this 
subsection applies only to active components of the Army.
    Sec. 8019. Funds appropriated for the Department of Defense 
during the current fiscal year and hereafter shall be available 
for the payment of not more than 75 percent of the charges of a 
postsecondary educational institution for the tuition or 
expenses of an officer in the Ready Reserve of the Army 
National Guard or Army Reserve for education or training during 
his off-duty periods, except that no part of the charges may be 
paid unless the officer agrees to remain a member of the Ready 
Reserve for at least four years after completion of such 
training or education.
    Sec. 8020. None of the funds appropriated by this Act shall 
be available to convert to contractor performance an activity 
or function of the Department of Defense that, on or after the 
date of enactment of this Act, is performed by more than ten 
Department of Defense civilian employees until a most efficient 
and cost-effective organization analysis is completed on such 
activity or function and certification of the analysis is made 
to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided, That this section 
shall not apply to a commercial or industrial type function of 
the Department of Defense that: (1) is included on the 
procurement list established pursuant to section 2 of the Act 
of June 25, 1938 (41 U.S.C. 47), popularly referred to as the 
Javits-Wagner-O'Day Act; (2) is planned to be converted to 
performance by a qualified nonprofit agency for the blind or by 
a qualified nonprofit agency for other severely handicapped 
individuals in accordance with that Act; or (3) is planned to 
be converted to performance by a qualified firm under 51 
percent Native American ownership.
                          (transfer of funds)
    Sec. 8021. Funds appropriated in title III of this Act for 
the Department of Defense Pilot Mentor-Protege Program may be 
transferred to any other appropriation contained in this Act 
solely for the purpose of implementing a Mentor-Protege Program 
developmental assistance agreement pursuant to section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 10 U.S.C. 2301 note), as amended, under 
the authority of this provision or any other transfer authority 
contained in this Act.
    Sec. 8022. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its 
departments and agencies) of welded shipboard anchor and 
mooring chain 4 inches in diameter and under unless the anchor 
and mooring chain are manufactured in the United States from 
components which are substantially manufactured in the United 
States: Provided, That for the purpose of this section 
manufactured will include cutting, heat treating, quality 
control, testing of chain and welding (including the forging 
and shot blasting process): Provided further, That for the 
purpose of this section substantially all of the components of 
anchor and mooring chain shall be considered to be produced or 
manufactured in the United States if the aggregate cost of the 
components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That 
when adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis, the 
Secretary of the service responsible for the procurement may 
waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations that such an 
acquisition must be made in order to acquire capability for 
national security purposes.
                          (transfer of funds)
    Sec. 8023. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) shall be available for the 
reimbursement of any health care provider for inpatient mental 
health servicefor care received when a patient is referred to a 
provider of inpatient mental health care or residential treatment care 
by a medical or health care professional having an economic interest in 
the facility to which the patient is referred: Provided, That this 
limitation does not apply in the case of inpatient mental health 
services provided under the program for the handicapped under 
subsection (d) of section 1079 of title 10, United States Code, 
provided as partial hospital care, or provided pursuant to a waiver 
authorized by the Secretary of Defense because of medical or 
psychological circumstances of the patient that are confirmed by a 
health professional who is not a Federal employee after a review, 
pursuant to rules prescribed by the Secretary, which takes into account 
the appropriate level of care for the patient, the intensity of 
services required by the patient, and the availability of that care.
    Sec. 8024. Of the funds made available by this Act in title 
III, Procurement, $8,000,000, drawn pro rata from each 
appropriations account in title III, shall be available for 
incentive payments authorized by section 504 of the Indian 
Financing Act of 1974, 25 U.S.C. 1544. These payments shall be 
available only to contractors which have submitted 
subcontracting plans pursuant to 15 U.S.C. 637(d), and 
according to regulations which shall be promulgated by the 
Secretary of Defense within 90 days of the passage of this Act.
    Sec. 8025. Funds available in this Act may be used to 
provide transportation for the next-of-kin of individuals who 
have been prisoners of war or missing in action from the 
Vietnam era to an annual meeting in the United States, under 
such regulations as the Secretary of Defense may prescribe.
    Sec. 8026. During the current fiscal year, none of the 
funds available to the Department of Defense may be used to 
procure or acquire (1) defensive handguns unless such handguns 
are the M9 or M11 9mm Department of Defense standard handguns, 
or (2) offensive handguns except for the Special Operations 
Forces: Provided, That the foregoing shall not apply to 
handguns and ammunition for marksmanship competitions.
    Sec. 8027. Notwithstanding any other provision of law, 
during the current fiscal year, the Secretary of Defense may, 
by Executive Agreement, establish with host nation governments 
in NATO member states a separate account into which such 
residual value amounts negotiated in the return of United 
States military installations in NATO member states may be 
deposited, in the currency of the host nation, in lieu of 
direct monetary transfers to the United States Treasury: 
Provided, That such credits may be utilized only for the 
construction of facilities to support United States military 
forces in that host nation, or such real property maintenance 
and base operating costs that are currently executed through 
monetary transfers to such host nations: Provided further, That 
the Department of Defense's budget submission for fiscal year 
1997 shall identify such sums anticipated in residual value 
settlements, and identify such construction, real property 
maintenance or base operating costs that shall be funded by the 
host nation through such credits: Provided further, That all 
military construction projects to be executed from such 
accounts must be previously approved in a prior Act of 
Congress: Provided further, That each such Executive Agreement 
with a NATO member host nation shall be reported to the 
congressional defense committees, and the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate thirty days prior 
to the conclusion and endorsement of any such agreement 
established under this provision.
    Sec. 8028. None of the funds available to the Department of 
Defense may be used to demilitarize or dispose of M-1 Carbines, 
M-1 Garand rifles, M-14 rifles, .22 caliber rifles, or M-1911 
pistols.
    Sec. 8029. None of the funds available to the Department of 
the Navy may be used to enter into any contract for the 
overhaul, repair, or maintenance of any naval vessel homeported 
on the West Coast of the United States which includes charges 
for interport differential as an evaluation factor for award.
    Sec. 8030. Notwithstanding any other provision of law, none 
of the funds appropriated by this Act shall be available to pay 
more than 50 percent of an amount paid to any person under 
section 308 of title 37, United States Code, in a lump sum.
    Sec. 8031. None of the funds appropriated during the 
current fiscal year and hereafter, may be used by the 
Department of Defense to assign a supervisor's title or grade 
when the number of people he or she supervises is considered as 
a basis for this determination: Provided, That savings that 
result from this provision are represented as such in future 
budget proposals.
    Sec. 8032. None of the funds appropriated by this Act shall 
be available for payments under the Department of Defense 
contract with the Louisiana State University Medical Center 
involving the use of cats for Brain Missile Wound Research, and 
the Department of Defense shall not make payments under such 
contract from funds obligated prior to the date of the 
enactment of this Act, except as necessary for costs incurred 
by the contractor prior to the enactment of this Act: Provided, 
That funds necessary for the care of animals covered by this 
contract are allowed.
    Sec. 8033. Notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to American Samoa: 
Provided, That notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to the Indian Health 
Service when it is in conjunction with a civil-military 
project.
    Sec. 8034. None of the funds provided in this Act or any 
other Act shall be available to conduct bone trauma research at 
any Army Research Laboratory until the Secretary of the Army 
certifies that the synthetic compound to be used in the 
experiments is of such a type that its use will result in a 
significant medical finding, the research has military 
application, the research will be conducted in accordance with 
the standards set by an animal care and use committee, and the 
research does not duplicate research already conducted by a 
manufacturer or any other research organization.
    Sec. 8035. No more than $50,000 of the funds appropriated 
or made available in this Act shall be used for any single 
relocation of an organization, unit, activity or function of 
the Department of Defense into or within the National Capital 
Region: Provided, That the Secretary of Defense may waive this 
restriction on a case-by-case basis by certifying in writing to 
the Committees on Appropriations of the House of 
Representatives and Senate that such a relocation is required 
in the best interest of the Government.
    Sec. 8036. During the current fiscal year, funds 
appropriated or otherwise available for any Federal agency, the 
Congress, the judicial branch, or the District of Columbia may 
be used for the pay, allowances, and benefits of an employee as 
defined by section 2105 of title 5 or an individual employed by 
the government of the District of Columbia, permanent or 
temporary indefinite, who--
            (1) is a member of a Reserve component of the Armed 
        Forces, as described in section 261 of title 10, or the 
        National Guard, as described in section 101 of title 
        32;
            (2) performs, for the purpose of providing military 
        aid to enforce the law or providing assistance to civil 
        authorities in the protection or saving of life or 
        property or prevention of injury--
                    (A) Federal service under section 331, 332, 
                333, or 12406 of title 10, or other provision 
                of law, as applicable, or
                    (B) full-time military service for his 
                State, the District of Columbia, the 
                Commonwealth of Puerto Rico, or a territory of 
                the United States; and
            (3) requests and is granted--
                    (A) leave under the authority of this 
                section; or
                    (B) annual leave, which may be granted 
                without regard to the provisions of sections 
                5519 and 6323(b) of title 5, if such employee 
                is otherwise entitled to such annual leave:
Provided, That any employee who requests leave under subsection 
(3)(A) for service described in subsection (2) of this section 
is entitled to such leave, subject to the provisions of this 
section and of the last sentence of section 6323(b) of title 5, 
and such leave shall be considered leave under section 6323(b) 
of title 5.
    Sec. 8037. None of the funds appropriated by this Act shall 
be available to perform any cost study pursuant to the 
provisions of OMB Circular A-76 if the study being performed 
exceeds a period of twenty-four months after initiation of such 
study with respect to a single function activity or forty-eight 
months after initiation of such study for a multi-function 
activity.
    Sec. 8038. Funds appropriated by this Act for the American 
Forces Information Service shall not be used for any national 
or international political or psychological activities.
    Sec. 8039. Notwithstanding any other provision of law, each 
contract awarded by the Department of Defense in fiscal year 
1996 for construction or service performed in whole or in part 
in a State which is not contiguous with another State and has 
an unemployment rate in excess of the national average rate of 
unemployment as determined by the Secretary of Labor shall 
include a provision requiring the contractor to employ, for the 
purpose of performing that portion of the contract in such 
State that is not contiguous with another State, individuals 
who are residents of such State and who, in the case of any 
craft or trade, possess or would be able to acquire promptly 
the necessary skills: Provided, That the Secretary of Defense 
may waive the requirements of this section in the interest of 
national security.
    Sec. 8040. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may adjust wage rates for 
civilian employees hired for certain health care occupations as 
authorized for the Secretary of Veterans Affairs by section 
7455 of title 38, United States Code.
    Sec. 8041. None of the funds appropriated or made available 
in this Act shall be used to reduce or disestablish the 
operation of the 53rd Weather Reconnaissance Squadron of the 
Air Force Reserve, if such action would reduce the WC-130 
Weather Reconnaissance mission below the levels funded in this 
Act.
    Sec. 8042. (a) Of the funds for the procurement of supplies 
or services appropriated by this Act, qualified nonprofit 
agencies for the blind or other severely handicapped shall be 
afforded the maximum practicable opportunity to participate as 
subcontractors and suppliers in the performance of contracts 
let by the Department of Defense.
    (b) During the current fiscal year, a business concern 
which has negotiated with a military service or defense agency 
a subcontracting plan for the participation by small business 
concerns pursuant to section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) shall be given credit toward meeting that 
subcontracting goal for any purchases made from qualified 
nonprofit agencies for the blind or other severely handicapped.
    (c) For the purpose of this section, the phrase ``qualified 
nonprofit agency for the blind or other severely handicapped'' 
means a nonprofit agency for the blind or other severely 
handicapped that has been approved by the Committee for the 
Purchase from the Blind and Other Severely Handicapped under 
the Javits-Wagner-O'Day Act (41 U.S.C. 46-48).
    Sec. 8043. During the current fiscal year, net receipts 
pursuant to collections from third party payers pursuant to 
section 1095 of title 10, United States Code, shall be made 
available to the local facility of the uniformed services 
responsible for the collections and shall be over and above the 
facility's direct budget amount.
    Sec. 8044. During the current fiscal year, the Department 
of Defense is authorized to incur obligations of not to exceed 
$350,000,000 for purposes specified in section 2350j(c) of 
title 10, United States Code, in anticipation of receipt of 
contributions, only from the Government of Kuwait, under that 
section: Provided, That, upon receipt, such contributions from 
the Government of Kuwait shall be credited to the appropriation 
or fund which incurred such obligations.
    Sec. 8045. Of the funds made available in this Act, not 
less than $25,144,000 shall be available for the Civil Air 
Patrol, of which $16,704,000 shall be available for Operation 
and Maintenance.
    Sec. 8046. (a) None of the funds appropriated in this Act 
are available to establish a new FFRDC, either as a new entity, 
or as a separate entity administered by an organization 
managing another FFRDC, or as a nonprofit membership 
corporation consisting of a consortium of other FFRDCs and 
other nonprofit entities.
    (b) Limitation on Compensation.--No member of a Board of 
Directors, Trustees, Overseers, Advisory Group, Special Issues 
Panel, Visiting Committee, or any similar entity of a defense 
FFRDC, and no paid consultant to any defense FFRDC, may be 
compensated for his or her services as a member of such entity, 
or as a paid consultant, except under the same conditions, and 
to the same extent, as members of the Defense Science Board: 
Provided, That a member of any such entity referred to 
previously in this subsection shall be allowed travel expenses 
and per diem as authorized under the Federal Joint Travel 
Regulations, when engaged in the performance of membership 
duties.
    (c) Notwithstanding any other provision of law, none of the 
funds available to the Department of Defense from any source 
during fiscal year 1996 may be used by a defense FFRDC, through 
a fee or other payment mechanism, for charitable contributions, 
for construction of new buildings, for payment of cost sharing 
for projects funded by government grants, or for absorption of 
contract overruns.
    (d) Notwithstanding any other provision of law, of the 
amounts available to the Department of Defense during fiscal 
year 1996, not more than $1,162,650,000 may be obligated for 
financing activities of defense FFRDCs: Provided, That the 
total amounts appropriated in titles II, III, and IV of this 
Act are hereby reduced by $90,000,000 to reflect the funding 
ceiling contained in this subsection.
    Sec. 8047. None of the funds appropriated or made available 
in this Act shall be used to procure carbon, alloy or armor 
steel plate for use in any Government-owned facility or 
property under the control of the Department of Defense which 
were not melted and rolled in the United States or Canada: 
Provided, That these procurement restrictions shall apply to 
any and all Federal Supply Class 9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel 
Institute (AISI) specifications of carbon, alloy or armor steel 
plate: Provided further, That the Secretary of the military 
department responsible for the procurement may waive this 
restriction on a case-by-case basis by certifying in writing to 
the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes: 
Provided further, That these restrictions shall not apply to 
contracts which are in being as of the date of enactment of 
this Act.
    Sec. 8048. None of the unobligated balances available in 
the National Defense Stockpile Transaction Fund during the 
current fiscal year may be obligated or expended to finance any 
grant or contract to conduct research, development, test and 
evaluation activities for the development or production of 
advanced materials, unless amounts for such purposes are 
specifically appropriated in a subsequent appropriations Act.
    Sec. 8049. For the purposes of this Act, the term 
``congressional defense committees'' means the National 
Security Committee of the House of Representatives, the Armed 
Services Committee of the Senate, the subcommittee on Defense 
of the Committee on Appropriations of the Senate, and the 
subcommittee on National Security of the Committee on 
Appropriations of the House of Representatives.
    Sec. 8050. Notwithstanding any other provision of law, 
during the current fiscal year, the Department of Defense may 
acquire the modification, depot maintenance and repair of 
aircraft, vehicles and vessels as well as the production of 
components and other Defense-related articles, through 
competition between Department of Defense depot maintenance 
activities and private firms: Provided, That the Senior 
Acquisition Executive of the military department or defense 
agency concerned, with power of delegation, shall certify that 
successful bids include comparable estimates of all direct and 
indirect costs for both public and private bids: Provided 
further, That Office of Management and Budget Circular A-76 
shall not apply to competitions conducted under this section.
    Sec. 8051. (a)(1) If the Secretary of Defense, after 
consultation with the United States Trade Representative, 
determines that a foreign country which is party to an 
agreement described in paragraph (2) has violated the terms of 
the agreement by discriminating against certain types of 
products produced in the United States that are covered by the 
agreement, the Secretary of Defense shall rescind the 
Secretary's blanket waiver of the Buy American Act with respect 
to such types of products produced in that foreign country.
    (2) An agreement referred to in paragraph (1) is any 
reciprocal defense procurement memorandum of understanding, 
between the United States and a foreign country pursuant to 
which the Secretary of Defense has prospectively waived the Buy 
American Act for certain products in that country.
    (b) The Secretary of Defense shall submit to Congress a 
report on the amount of Department of Defense purchases from 
foreign entities in fiscal year 1996. Such report shall 
separately indicate the dollar value of items for which the Buy 
American Act was waived pursuant to any agreement described in 
subsection (a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 
2501 et seq.), or any international agreement to which the 
United States is a party.
    (c) For purposes of this section, the term ``Buy American 
Act'' means title III of the Act entitled ``An Act making 
appropriations for the Treasury and Post Office Departments for 
the fiscal year ending June 30, 1934, and for other purposes'', 
approved March 3, 1933 (41 U.S.C. 10a et seq.).
    Sec. 8052. Notwithstanding any other provision of law, the 
Secretary of Defense may, when he considers it in the best 
interest of the United States, cancel any part of an 
indebtedness, up to $2,500, that is or was owed to the United 
States by a member or former member of a uniformed service if 
such indebtedness, as determined by the Secretary, was incurred 
in connection with Operation Desert Shield/Storm: Provided, 
That the amount of an indebtedness previously paid by a member 
or former member and cancelled under this section shall be 
refunded to the member.
    Sec. 8053. Appropriations contained in this Act that remain 
available at the end of the current fiscal year as a result of 
energy cost savings realized by the Department of Defense shall 
remain available for obligation for the next fiscal year to the 
extent, and for the purposes, provided in section 2865 of title 
10, United States Code.
    Sec. 8054. During the current fiscal year, voluntary 
separation incentives payable under 10 U.S.C. 1175 may be paid 
in such amounts as are necessary from the assets of the 
Voluntary Separation Incentive Fund established by section 
1175(h)(1).
    Sec. 8055. None of the funds appropriated by this Act shall 
be used for the support of any nonappropriated funds activity 
of the Department of Defense that procures malt beverages and 
wine with nonappropriated funds for resale (including such 
alcoholic beverages sold by the drink) on a military 
installation located in the United States unless such malt 
beverages and wine are procured within that State, or in the 
case of the District of Columbia, within the District of 
Columbia, in which the military installation is located: 
Provided, That in a case in which the military installation is 
located in more than one State, purchases may bemade in any 
State in which the installation is located: Provided further, That such 
local procurement requirements for malt beverages and wine shall apply 
to all alcoholic beverages only for military installations in States 
which are not contiguous with another State: Provided further, That 
alcoholic beverages other than wine and malt beverages, in contiguous 
States and the District of Columbia shall be procured from the most 
competitive source, price and other factors considered.
                     (including transfer of funds)
    Sec. 8056. Amounts deposited during the current fiscal year 
to the special account established under 40 U.S.C. 485(h)(2) 
and to the special account established under 10 U.S.C. 
2667(d)(1) are appropriated and shall be available until 
transferred by the Secretary of Defense to current applicable 
appropriations or funds of the Department of Defense under the 
terms and conditions specified by 40 U.S.C. 485(h)(2) (A) and 
(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be 
available for the same time period and the same purposes as the 
appropriation to which transferred.
    Sec. 8057. During the current fiscal year, appropriations 
available to the Department of Defense may be used to reimburse 
a member of a reserve component of the Armed Forces who is not 
otherwise entitled to travel and transportation allowances and 
who occupies transient government housing while performing 
active duty for training or inactive duty training: Provided, 
That such members may be provided lodging in kind if transient 
government quarters are unavailable as if the member was 
entitled to such allowances under subsection (a) of section 404 
of title 37, United States Code: Provided further, That if 
lodging in kind is provided, any authorized service charge or 
cost of such lodging may be paid directly from funds 
appropriated for operation and maintenance of the reserve 
component of the member concerned.
    Sec. 8058. The President shall include with each budget for 
a fiscal year submitted to the Congress under section 1105 of 
title 31, United States Code, materials that shall identify 
clearly and separately the amounts requested in the budget for 
appropriation for that fiscal year for salaries and expenses 
related to administrative activities of the Department of 
Defense, the military departments, and the Defense Agencies.
    Sec. 8059. None of the funds in this or any other Act shall 
be available for the preparation of studies on--
            (a) the feasibility of removal and transportation 
        of unitary chemical weapons from the eight chemical 
        storage sites within the continental United States to 
        Johnston Atoll: Provided, That this prohibition shall 
        not apply to General Accounting Office studies 
        requested by a Member of Congress or a Congressional 
        Committee; and
            (b) the potential future uses of the nine chemical 
        disposal facilities other than for the destruction of 
        stockpile chemical munitions and as limited by section 
        1412(c)(2), Public Law 99-145: Provided, That this 
        prohibition does not apply to future use studies for 
        the CAMDS facility at Tooele, Utah.
    Sec. 8060. During the current fiscal year, amounts 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account established by section 
2921(c)(1) of the National Defense Authorization Act of 1991 
(Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
until expended for the payments specified by section 2921(c)(2) 
of that Act.
    Sec. 8061. During the current fiscal year, annual payments 
granted under the provisions of section 4416 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
428; 106 Stat. 2714) shall be made from appropriations in this 
Act which are available for the pay of reserve component 
personnel.
    Sec. 8062. For fiscal year 1996, the total amount 
appropriated in this Act to fund the Uniformed Services 
Treatment Facilities program, operated pursuant to section 911 
of Public Law 97-99 (42 U.S.C. 248c), shall not exceed 
$315,000,000.
    Sec. 8063. Of the funds appropriated or otherwise made 
available by this Act, not more than $119,200,000 shall be 
available for payment of the operating costs of NATO 
Headquarters: Provided, That the Secretary of Defense may waive 
this section for Department of Defense support provided to NATO 
forces in and around the former Yugoslavia.
    Sec. 8064. Notwithstanding any other provision of law, the 
Naval shipyards of the United States shall be eligible to 
participate in any manufacturing extension program financed by 
funds appropriated in this or any other Act.
    Sec. 8065. During the current fiscal year, appropriations 
which are available to the Department of Defense for operation 
and maintenance may be used to purchase items having an 
investment item unit cost of not more than $100,000.
    Sec. 8066. During the current fiscal year, appropriations 
available for the pay and allowances of active duty members of 
the Armed Forces shall be available to pay the retired pay 
which is payable pursuant to section 4403 of Public Law 102-484 
(10 U.S.C. 1293 note) under the terms and conditions provided 
in section 4403.
    Sec. 8067. (a) During the current fiscal year, none of the 
appropriations or funds available to the Defense Business 
Operations Fund shall be used for the purchase of an investment 
item for the purpose of acquiring a new inventory item for sale 
or anticipated sale during the current fiscal year or a 
subsequent fiscal year to customers of the Defense Business 
Operations Fund if such an item would not have been chargeable 
to the Defense Business Operations Fund during fiscal year 1994 
and if the purchase of such an investment item would be 
chargeable during the current fiscal year to appropriations 
made to the Department of Defense for procurement.
    (b) The fiscal year 1997 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 1997 Department of 
Defense budget shall be prepared and submitted to the Congress 
on the basis that any equipment which was classified as an end 
item and funded in a procurement appropriation contained in 
this Act shall be budgeted for in a proposed fiscal year 1997 
procurement appropriation and not in the supply management 
business area or any other area or category of the Defense 
Business Operations Fund.
    Sec. 8068. None of the funds provided in this Act shall be 
available for use by a Military Department to modify an 
aircraft, weapon, ship or other item of equipment, that the 
Military Department concerned plans to retire or otherwise 
dispose of within five years after completion of the 
modification: Provided, That this prohibition shall not apply 
to safety modifications: Provided further, That this 
prohibition may be waived by the Secretary of a Military 
Department if the Secretary determines it is in the best 
national security interest of the United States to provide such 
waiver and so notifies the congressional defense committees in 
writing.
    Sec. 8069. (a) None of the funds appropriated or otherwise 
made available in this Act may be used to transport or provide 
for the transportation of chemical munitions to the Johnston 
Atoll for the purpose of storing or demilitarizing such 
munitions.
    (b) The prohibition in subsection (a) shall not apply to 
any obsolete World War II chemical munition of the United 
States found in the World War II Pacific Theater of Operations.
    (c) The President may suspend the application of subsection 
(a) during a period of war in which the United States is a 
party.
    Sec. 8070. None of the funds appropriated by this Act for 
programs of the Central Intelligence Agency shall remain 
available for obligation beyond the current fiscal year, except 
for funds appropriated for the Reserve for Contingencies, which 
shall remain available until September 30, 1997.
    Sec. 8071. Notwithstanding any other provision of law, 
funds made available in this Act for the Defense Intelligence 
Agency may be used for the design, development, and deployment 
of General Defense Intelligence Program intelligence 
communications and intelligence information systems for the 
Services, the Unified and Specified Commands, and the component 
commands.
    Sec. 8072. Of the funds appropriated to the Department of 
Defense under the heading ``Operation and Maintenance, Defense-
Wide'', not less than $8,000,000 shall be made available only 
for the mitigation of environmental impacts, including training 
and technical assistance to tribes, related administrative 
support, the gathering of information, documenting of 
environmental damage, and developing a system for 
prioritization of mitigation, on Indian lands resulting from 
Department of Defense activities.
    Sec. 8073. Notwithstanding any other provision of law, 
funds appropriated in this Act for the High Performance 
Computing Modernization Program shall be made available only 
for the acquisition and sustainment of operations, including 
maintenance of the supercomputing and related networking 
capability at (1) the DOD Science and Technology sites under 
the cognizance of the DDR&E, (2) the DOD Test and Evaluation 
centers under the Director, Test and Evaluation, OUSD (A&T), 
and (3) the Ballistic Missile Defense Organization: Provided, 
That the contracts, contract modifications, or contract options 
are awarded upon the requirements of the users.
    Sec. 8074. Amounts collected for the use of the facilities 
of the National Science Center for Communications and 
Electronics during the current fiscal year pursuant to section 
1459(g) of the Department of Defense Authorization Act, 1986 
and deposited to the special account established under 
subsection 1459(g)(2) of that Act are appropriated and shall be 
available until expended for the operation and maintenance of 
the Center as provided for in subsection 1459(g)(2).
    Sec. 8075. To the extent authorized in law, the Secretary 
of Defense shall issue loan guarantees in support of U.S. 
defense exports not otherwise provided for: Provided, That the 
total contingent liability of the United States for guarantees 
issued under the authority of this section may not exceed 
$15,000,000,000: Provided further, That the exposure fees 
charged and collectedby the Secretary for each guarantee, shall 
be paid by the country involved and shall not be financed as part of a 
loan guaranteed by the United States: Provided further, That the 
Secretary shall provide quarterly reports to the Committees on 
Appropriations, Armed Services and Foreign Relations of the Senate and 
the Committees on Appropriations, National Security and International 
Relations in the House of Representatives on the implementation of this 
program.
    Sec. 8076. None of the funds appropriated in this Act may 
be used to fill the commander's position at any military 
medical facility with a health care professional unless the 
prospective candidate can demonstrate professional 
administrative skills.
    Sec. 8077. (a) None of the funds appropriated in this Act 
may be expended by an entity of the Department of Defense 
unless the entity, in expending the funds, complies with the 
Buy American Act. For purposes of this subsection, the term 
``Buy American Act'' means title III of the Act entitled ``An 
Act making appropriations for the Treasury and Post Office 
Departments for the fiscal year ending June 30, 1934, and for 
other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
seq.).
    (b) If the Secretary of Defense determines that a person 
has been convicted of intentionally affixing a label bearing a 
``Made in America'' inscription to any product sold in or 
shipped to the United States that is not made in America, the 
Secretary shall determine, in accordance with section 2410f of 
title 10, United States Code, whether the person should be 
debarred from contracting with the Department of Defense.
    Sec. 8078. None of the funds provided in this Act may be 
obligated or expended for the sale of zinc in the National 
Defense Stockpile if zinc commodity prices decline more than 
five percent below the London Metals Exchange market price 
reported on the date of enactment of this Act.
    Sec. 8079. None of the funds appropriated by this Act shall 
be available for a contract for studies, analyses, or 
consulting services entered into without competition on the 
basis of an unsolicited proposal unless the head of the 
activity responsible for the procurement determines--
            (1) as a result of thorough technical evaluation, 
        only one source is found fully qualified to perform the 
        proposed work, or
            (2) the purpose of the contract is to explore an 
        unsolicited proposal which offers significant 
        scientific or technological promise, represents the 
        product of original thinking, and was submitted in 
        confidence by one source, or
            (3) the purpose of the contract is to take 
        advantage of unique and significant industrial 
        accomplishment by a specific concern, or to insure that 
        a new product or idea of a specific concern is given 
        financial support:
Provided, That this limitation shall not apply to contracts in 
an amount of less than $25,000, contracts related to 
improvements of equipment that is in development or production, 
or contracts as to which a civilian official of the Department 
of Defense, who has been confirmed by the Senate, determines 
that the award of such contract is in the interest of the 
national defense.
    Sec. 8080. Funds appropriated by this Act for intelligence 
activities are deemed to be specifically authorized by the 
Congress for purposes of section 504 of the National Security 
Act of 1947 (50 U.S.C. 414) during fiscal year 1996 until the 
enactment of the Intelligence Authorization Act for fiscal year 
1996.
    Sec. 8081. (a) None of the funds made available by this Act 
may be obligated for design, development, acquisition, or 
operation of more than 47 Titan IV expendable launch vehicles, 
or for satellite mission-model planning for a Titan IV 
requirement beyond 47 vehicles.
    (b) $115,226,000 made available in this Act for Research, 
Development, Test and Evaluation, Air Force, may only be 
obligated for development of a new family of medium-lift and 
heavy-lift expendable launch vehicles evolved from existing 
technologies.
    Sec. 8082. None of the funds available to the Department of 
Defense in this Act may be used to establish additional field 
operating agencies of any element of the Department during 
fiscal year 1996, except for field operating agencies funded 
within the National Foreign Intelligence Program: Provided, 
That the Secretary of Defense may waive this section by 
certifying to the House and Senate Committees on Appropriations 
that the creation of such field operating agencies will reduce 
either the personnel and/or financial requirements of the 
Department of Defense.
                             (rescissions)
    Sec. 8083. Of the funds provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded 
from the following accounts in the specified amounts:
            ``Aircraft Procurement, Air Force, 1994/1996'', 
        $53,654,000;
            ``Missile Procurement, Air Force, 1994/1996'', 
        $16,783,000;
            ``Weapons Procurement, Navy, 1995/1997'', 
        $14,600,000;
            ``Shipbuilding and Conversion, Navy, 1995/1999'', 
        $87,700,000;
            ``Other Procurement, Navy, 1995/1997'', $8,600,000;
            ``Aircraft Procurement, Air Force, 1995/1997'', 
        $24,000,000;
            ``Missile Procurement, Air Force, 1995/1997'', 
        $140,978,000;
            ``Other Procurement, Air Force, 1995/1997'', 
        $180,000,000;
            ``Research, Development, Test and Evaluation, Army, 
        1995/1996'', $9,000,000;
            ``Research, Development, Test and Evaluation, Navy, 
        1995/1996'', $6,000,000;
            ``Research, Development, Test and Evaluation, Air 
        Force, 1995/1996'', $7,902,000;
            ``Research, Development, Test and Evaluation, 
        Defense-Wide, 1995/1996'', $12,000,000.
    Sec. 8084. Notwithstanding any other provision of law, for 
resident classes entering the war colleges after September 30, 
1996, the Department of Defense shall require that not less 
than 20 percent of the total of United States military students 
at each war college shall be from military departments other 
than the hosting military department: Provided, That each 
military department will recognize the attendance at a sister 
military department war college as the equivalent of attendance 
at its own war college for promotion and advancement of 
personnel.
    Sec. 8085. None of the funds in this or any other Act may 
be used to implement the plan to reorganize the regional 
headquarters and basic camps structure of the Reserve Officer 
Training Corps program of the Army until the Comptroller 
General of the United States has certified to the congressional 
defense committees that the methodology and evaluation of the 
potential sites were consistent with the established criteria 
for the consolidation, that all data used by the Army in the 
evaluation was accurate and complete, and that the conclusions 
reached are based upon the total costs of the Army's final plan 
to establish the Eastern Reserve Officer Training Corps 
Headquarters at Fort Benning, Georgia: Provided, That all cost, 
including Military Construction, shall be considered as well as 
an analysis of the impact of the consolidation on the 
surrounding communities for all affected installations.
    Sec. 8086. None of the funds provided in this Act may be 
obligated for payment on new contracts on which allowable costs 
charged to the government include payments for individual 
compensation at a rate in excess of $200,000 per year after 
July 1, 1996, unless the Office of Federal Procurement Policy 
establishes in the Federal Acquisition Regulations guidance 
governing the allowability of individual compensation.
    Sec. 8087. None of the funds available in this Act may be 
used to reduce the authorized positions for military (civilian) 
technicians of the Army National Guard, the Air National Guard, 
Army Reserve and Air Force Reserve for the purpose of applying 
any administratively imposed civilian personnel ceiling, 
freeze, or reduction on military (civilian) technicians, unless 
such reductions are a direct result of a reduction in military 
force structure.
    Sec. 8088. None of the funds appropriated or otherwise made 
available in this Act may be obligated or expended for 
assistance to the Democratic People's Republic of North Korea 
unless specifically appropriated for that purpose.
    Sec. 8089. During the current fiscal year, funds 
appropriated in this Act are available to compensate members of 
the National Guard for duty performed pursuant to a plan 
submitted by a Governor of a State and approved by the 
Secretary of Defense under section 112 of title 32, United 
States Code: Provided, That during the performance of such 
duty, the members of the National Guard shall be under State 
command and control: Provided further, That such duty shall be 
treated as full-time National Guard duty for purposes of 
sections 12602 (a)(2) and (b)(2) of title 10, United States 
Code.
    Sec. 8090. Funds appropriated in this Act for operation and 
maintenance of the Military Departments, Unified and Specified 
Commands and Defense Agencies shall be available for 
reimbursement of pay, allowances and other expenses which would 
otherwise be incurred against appropriations for the National 
Guard and Reserve when members of the National Guard and 
Reserve provide intelligence support to Unified Commands, 
Defense Agencies and Joint Intelligence Activities, including 
the activities and programs included within the General Defense 
Intelligence Program and the Consolidated Cryptologic Program: 
Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel and 
training procedures.
    Sec. 8091. During the current fiscal year, none of the 
funds appropriated in this Act may be used to reduce the 
civilian medical and medical support personnel assigned to 
military treatment facilities below the September 30, 1995 
level.
                          (transfer of funds)
    Sec. 8092. Upon enactment of this Act, the Secretary of 
Defense shall make the following transfers of funds: Provided, 
That the amounts transferred shall be available for the same 
purposes as the appropriations to which transferred, and for 
the same time period as the appropriation from which 
transferred: Provided further, That the amounts shall be 
transferred between the following appropriations in the amount 
specified:
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1986/1996'':
                            SSN-688 attack submarine program, 
                        $5,051,000;
                            CG-47 cruiser program, $2,500,000;
                            BB battleship reactivation, 
                        $4,400,000;
                            T-AGOS SURTASS ship program, 
                        $2,135,000;
                            LCAC landing craft air cushion 
                        program, $700,000;
                            For craft, outfitting, post 
                        delivery, and cost growth, $12,360,000;
                            Weapons Procurement, Navy, 1994/
                        1996, $30,900,000;
                            Other Procurement, Navy, 1994/1996, 
                        $4,200,000;
                            Other Procurement, Navy, 1995/1997, 
                        $5,000,000;
                            Aircraft Procurement, Navy, 1994/
                        1996, $2,056,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1986/1996'':
                            MSH coastal mine hunter program, 
                        $69,302,000;
            From:
                            Weapons Procurement, Navy 1994/
                        1996, $5,500,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1987/1996'':
                            AOE combat support ship program, 
                        $5,500,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1988/2001'':
                            SSN-688 attack submarine program, 
                        $1,500,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1988/2001'':
                            T-ACS auxiliary crane ship program, 
                        $1,500,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1989/2000'':
                            SSN-688 attack submarine program, 
                        $23,535,000;
                            DDG-51 destroyer program, 
                        $33,700,000;
                            T-AO fleet oiler program, 
                        $38,969,000;
                            Other Procurement, Navy, 1995/1997, 
                        $3,500,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1989/2000'':
                            SSN-21 attack submarine program, 
                        $65,886,000;
                            MHC coastal mine hunter program, 
                        $30,318,000;
                            AOE combat support ship program, 
                        $3,500,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1990/2002'':
                            SSN-688 attack submarine program, 
                        $1,907,000;
                            DDG-51 destroyer program, 
                        $22,669,000;
                            For craft, outfitting and post 
                        delivery, $3,900,000;
                            Aircraft Procurement, Navy, 1994/
                        1996, $17,944,000;
                            Procurement of Ammunition, Navy and 
                        Marine Corps, 1995/1997, $5,116,000;
                            Weapons Procurement, Navy, 1995/
                        1997, $2,000,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1990/2002'':
                            MHC coastal mine hunter, 
                        $9,536,000;
                            T-AGOS surveillance ship program, 
                        $42,000,000;
                            AOE combat support ship program, 
                        $2,000,000;
        From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1991/2001'':
                            SSN-21 attack submarine program, 
                        $18,330,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1991/2001'':
                            LHD-1 amphibious assault ship 
                        program, $6,178,000;
                            MHC coastal mine hunter program, 
                        $12,152,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1992/1996'':
                            DDG-51 destroyer program, 
                        $5,315,000;
                            For craft, outfitting, post 
                        delivery, and DBOF transfer, 
                        $9,675,000;
                            For escalation, $3,347,000;
                            Weapons Procurement, Navy, 1995/
                        1997, $7,500,000;
                            Procurement, Marine Corps, 1995/
                        1997, $378,000;
                            Other Procurement, Navy, 1995/1997, 
                        $355,000;
                            Aircraft Procurement, Navy 1995/
                        1997, $3,600,000;
                            Research, Development, Test and 
                        Evaluation, Navy, 1995/1996, 
                        $5,600,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1992/1996'':
                            MHC coastal mine hunter program, 
                        $35,770,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1993/1997'':
                            LSD-41 cargo variant ship program, 
                        $1,600,000;
                            For craft, outfitting, post 
                        delivery, and first destination 
                        transportation, and inflation 
                        adjustments, $5,627,000;
                            Procurement of Ammunition, Navy and 
                        Marine Corps, 1995/1997, $1,784,000;
                            Other Procurement, Navy, 1995/1997, 
                        $645,000;
                            Weapons Procurement, Navy, 1994/
                        1996, $1,963,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1993/1997'':
                            DDG-51 destroyer program, 
                        $7,356,000;
                            AOE combat support ship program, 
                        $2,300,000;
                            MHC coastal mine hunter program, 
                        $1,963,000;
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1994/1998'':
                            MCS(C) program, $4,819,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1995/1999'':
                            Nuclear submarine main steam 
                        condensor industrial base, $900,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1994/1998'':
                            LHD program, $5,719,000.
    Sec. 8093. The Department shall include, in the operation 
of TRICARE Regions 7/8, a region-wide wraparound care package 
that requires providers of residential treatment services to 
share financial risk through case rate reimbursement, to 
include planning and individualized wraparound services to 
prevent recidivism.
    Sec. 8094. All refunds or other amounts collected in the 
administration of the Civilian Health and Medical Program of 
the Uniformed Services (CHAMPUS) shall be credited to current 
year appropriations.
                     (including transfer of funds)
    Sec. 8095. None of the funds appropriated in this Act may 
be transferred to or obligated from the Pentagon Reservation 
Maintenance Revolving Fund, unless the Secretary of Defense 
certifies that the total cost for the planning design, 
construction and installation of equipment for the renovation 
of the Pentagon Reservation will not exceed $1,218,000,000.
    Sec. 8096. (a) None of the funds available to the 
Department of Defense for any fiscal year for drug interdiction 
or counter-drug activities may be transferred to any other 
department or agency of the United States except as 
specifically provided in an appropriations law.
    (b) None of the funds available to the Central Intelligence 
Agency for any fiscal year for drug interdiction and counter-
drug activities may be transferred to any other department or 
agency of the United States except as specifically provided in 
an appropriations law.
                          (transfer of funds)
    Sec. 8097. Appropriations available in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' for 
increasing energy and water efficiency in Federal buildings 
may, during their period of availability, be transferred to 
other appropriations or funds of the Department of Defense for 
projects related to increasing energy and water efficiency, to 
be merged with and to be available for the same general 
purposes, and for the same time period, as the appropriation or 
fund to which transferred.
    Sec. 8098. Funds in the amount of $61,300,000 received 
during fiscal year 1996 by the Department of the Air Force 
pursuant to the ``Memorandum of Agreement between the National 
Aeronautics and Space Administration and the United States Air 
Force on Titan IV/Centaur Launch Support for the Cassini 
Mission,'' signed September 8, 1994, and September 23, 1994, 
and Attachments A, B, and C to the Memorandum, shall be merged 
with appropriations available for research, development, test 
and evaluation and procurement for fiscal year 1996, and shall 
be available for the same time period as the appropriation with 
which merged, and shall be available for obligation only for 
those Titan IV vehicles and Titan IV-related activities under 
contract as of the date of enactment of this Act, as well as on 
the follow-on launch services and program sustaining support 
contract to be awarded in fiscal year 1996.
    Sec. 8099. None of the funds appropriated by this Act may 
be used for the procurement of ball and roller bearings other 
than those produced by a domestic source and of domestic 
origin: Provided, That the Secretary of the military department 
responsible for such procurement may waive this restriction on 
a case-by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate, that adequate domestic supplies are not available to 
meet Department of Defense requirements on a timely basis and 
that such an acquisition must be made in order to acquire 
capability for national security purposes.
    Sec. 8100. Not less than 30 percent of the total inventory, 
or 60,000 pounds, of the pentaborane currently stored in non-
defective containers at Edwards Air Force Base, California, 
will be retained until the Secretary of Energy certifies to the 
House and Senate Committees on Appropriations that the 
Secretary does not intend to use the pentaborane at the Idaho 
National Engineering Laboratory for: (a) a source of raw 
material for environmental remediation of high level, liquid 
radioactive waste, or (b) as a source of raw material for boron 
drugs for the Boron Neutron Capture Therapy or other medical or 
industrial applications: Provided, That the Secretary of the 
Air Force is authorized to dispose of any materials that pose a 
significant health or safety hazard.
    Sec. 8101. The total amount appropriated in title II, III, 
and IV of this Act is hereby reduced by $30,000,000 for savings 
through improved management of contractor automatic data 
processing costs charged through indirect rates on Department 
of Defense acquisition contracts.
    Sec. 8102. (a) Not later than October 1, 1995, the 
Secretary of Defense shall require that each disbursement by 
the Department of Defense in an amount in excess of $5,000,000 
be matched to a particular obligation before the disbursement 
is made.
    (b) The Secretary shall ensure that a disbursement in 
excess of the threshold amount applicable under subsection (a) 
is not divided into multiple disbursements of less than that 
amount for the purpose of avoiding the applicability of such 
subsection to that disbursement.
    (c) The Secretary of Defense may waive a requirement for 
advance matching of a disbursement of the Department of Defense 
with a particular obligation in the case of (1) a disbursement 
involving deployed forces, (2) a disbursement for an operation 
in a war declared by Congress or a national emergency declared 
by the President or Congress, or (3) a disbursement under any 
other circumstances for which the waiver is necessary in the 
national security interests of the United States, as determined 
by the Secretary and certified by the Secretary to the 
congressional defense committees.
    (d) This section shall not be construed to limit the 
authority of the Secretary of Defense to require that a 
disbursement not in excess of the amount applicable under 
subsection (a) be matched to a particular obligation before the 
disbursement is made.
    Sec. 8103. None of the funds in this Act may be used to 
purchase any supercomputer which is not manufactured in the 
United States, unless the Secretary of Defense certifies to the 
congressional defense committees that such an acquisition must 
be made in order to acquire capability for national security 
purposes that is not available from United States 
manufacturers.
    Sec. 8104. None of the funds appropriated in this Act to 
the Department of the Army may be obligated for procurement of 
120mm mortars or 120mm mortar ammunition manufactured outside 
of the United States: Provided, That the Secretary of the 
military department responsible for such procurement may waive 
this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of 
Representatives and the Senate, that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes.
    Sec. 8105. The Department of Defense shall release all 
funds appropriated and available for the HAVE GAZE program to 
the Department of the Air Force for obligation under existing 
contractual arrangements.
    Sec. 8106. None of the funds available to the Department of 
Defense during fiscal year 1996 may be obligated or expended to 
support or finance the activities of the Defense Policy 
Advisory Committee on Trade.
    Sec. 8107. Notwithstanding any other provision of law, 
within the funds available in this Act, the Secretary of the 
Air Force may enter into agreements to modify leases of housing 
units being constructed if deemed to be in the best interest of 
the Department. The housing units shall be assigned, without 
rental charge, as family housing to members of the armed forces 
who are eligible for assignment to military family housing.
    Sec. 8107A. Notwithstanding any other provision of law, the 
authorization for the Indiana, Pennsylvania armory project set 
forth in section 2601 of Public Law 102-484 (division B) shall 
remain in effect until September 30, 1997.
    Sec. 8108. None of the funds appropriated by this Act shall 
be available to lease or charter a vessel in excess of 
seventeen months (inclusive of any option periods) to transport 
fuel or oil for the Department of Defense if the vessel was 
constructed after October 1, 1995 unless the Secretary of 
Defense requires that the vessel be constructed in the United 
States with a double hull under the long-term lease or charter 
authority provided in section 2401 note of title 10, United 
States Code: Provided, That this limitation shall not apply to 
contracts in force on the date of enactment of this Act: 
Provided further, That by 1997 at least 20 percent of annual 
leases and charters must be for ships of double hull design 
constructed after October 1, 1995 if available in numbers 
sufficient to satisfy this requirement: Provided further, That 
the Military Sealift Command shall plan to achieve the goal of 
eliminating single hull ship leases by the year 2015.
    Sec. 8109. None of the funds appropriated or made available 
in this Act to the Department of the Navy shall be used to 
develop or procure main propulsion engines for the LPD-17 class 
of ships unless such equipment is powered by a diesel engine 
manufactured in the United States by a domestically operated 
entity: Provided, That the Secretary of Defense may waive this 
restriction on a case-by-case basis by certifying in writing to 
the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes or 
there exists a significant cost or quality difference.
    Sec. 8110. None of the funds appropriated or made available 
in this Act to the Department of the Navy shall be used to 
develop or procure an emergency generator set for the New 
Attack Submarine unless such equipment is powered by a diesel 
engine manufactured in the United States by a domestically 
operated entity: Provided, That the Secretary of Defense may 
waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes or 
there exists a significant cost or quality difference.
    Sec. 8111. None of the funds in this Act may be used to 
transport military personnel into Edwards Air Force Base for 
training rotations at the National Training Center after April 
15, 1996: Provided, That the Department of Defense shall comply 
with the recommendations of the fiscal year 1996 Military 
Construction bill as it pertains to the interim and permanent 
National Training Center Airhead.
    Sec. 8112. The Secretary of Defense and the Secretary of 
the Army shall reconsider the decision not to include the 
infantry military occupational specialty among the military 
skills and specialties for which special pays are provided 
under the Selected Reserve Incentive Program.
    Sec. 8113. (a) The Secretary of Defense shall submit, on a 
quarterly basis, a report to the congressional defense 
committees, the Committee on International Relations of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate setting forth all costs (including incremental 
costs) incurred by the Department of Defense during the 
preceding quarter in implementing or supporting resolutions of 
the United Nations Security Council, including any such 
resolution calling for international sanctions, international 
peacekeeping operations, and humanitarian missions undertaken 
by the Department of Defense. The quarterly report shall 
include an aggregate of all such Department of Defense costs by 
operation or mission.
    (b) The Secretary of Defense shall detail in the quarterly 
reports all efforts made to seek credit against past United 
Nations expenditures and all efforts made to seek compensation 
from the United Nations for costs incurred by the Department of 
Defense in implementing and supporting United Nations 
activities.
    Sec. 8114. (a) Limitation.--Of the funds available under 
title II under the heading ``Former Soviet Union Threat 
Reduction'' for dismantlement and destruction of chemical 
weapons, not more than $52,000,000 may be obligated or expended 
for that purpose until the President certifies to Congress the 
following:
            (1) That the United States and Russia have 
        completed a joint laboratory study evaluating the 
        proposal of Russia to neutralize its chemical weapons 
        and the United States agrees with the proposal.
            (2) That Russia is in the process of preparing, 
        with the assistance of the United States as necessary, 
        a comprehensive plan to manage the dismantlement and 
        destruction of the Russia chemical weapons stockpile.
            (3) That the United States and Russia are committed 
        to resolving outstanding issues under the 1989 Wyoming 
        Memorandum of Understanding and the 1990 Bilateral 
        Destruction Agreement.
    (b) Definitions.--In this section:
            (1) The term ``1989 Wyoming Memorandum of 
        Understanding'' means the Memorandum of Understanding 
        between the Government of the United States of America 
        and the Government of the Union of Soviet Socialist 
        Republics Regarding a Bilateral Verification Experiment 
        and Data Exchange Related to Prohibition on Chemical 
        Weapons, signed at Jackson Hole, Wyoming, on September 
        23, 1989.
            (2) The term ``1990 Bilateral Destruction 
        Agreement'' means the Agreement between the United 
        States of America and the Union of Soviet Socialist 
        Republics on destruction and non-production of chemical 
        weapons and on measures to facilitate the multilateral 
        convention on banning chemical weapons signed on June 
        1, 1990.
    Sec. 8115. (a) International Peacekeeping, Peace 
Enforcement, and Humanitarian Assistance Operations.--It is the 
sense of Congress that in the event of a deployment or 
participation of United States Armed Forces units in any 
international peacekeeping, peace enforcement, and humanitarian 
assistance operation, the President must engage in 
consultations with the bipartisan leadership of Congress and 
the congressional committees named in subsection (e) regarding 
such operation in accordance with subsection (c)(1).
    (b) Covered Operations.--(1) This section applies to the 
following:
            (A) Any international peacekeeping or peace-
        enforcement operation that is not underway as of the 
        date of the enactment of this Act and that is 
        authorized by the Security Council of the United 
        Nations under chapter VI or VII of the Charter of the 
        United Nations.
            (B) Any other international peacekeeping or peace-
        enforcement operation that is not underway as of the 
        date of the enactment of this Act.
            (C) Any deployment after the date of the enactment 
        of this Act of United States ground forces in the 
        territory of the former Yugoslavia above the level of 
        such forces so deployed as of such date of enactment, 
        other than a deployment involving fewer than 100 
        personnel.
            (D) Except as provided in paragraph (2), any 
        international humanitarian assistance operation.
    (2) This section does not apply with respect to--
            (A) an international humanitarian assistance 
        operation carried out in response to a disaster; or
            (B) any other international humanitarian assistance 
        operation if the President reports to Congress that the 
        estimated cost of such operation is less than 
        $50,000,000.
    (c) Consultation With Congress.--(1) Consultations under 
subsection (a) in the case of any operation shall be initiated 
before the initial deployment of United States Armed Forces 
units to participate in the operation and, whenever possible, 
at least 15 days before such deployment. However, if the 
President determines that the national security so requires, 
the President may delay the initiation of such consultations 
until after such initial deployment, but in no case may such 
consultations be initiated later than 48 hours after such 
deployment.
    (2) Such consultations shall include discussion of all of 
the following:
            (A) The goals of the operation and the mission of 
        any United States Armed Forces units involved in the 
        operation.
            (B) The United States interests that will be served 
        by the operation.
            (C) The estimated cost of the operation.
            (D) The strategy by which the President proposes to 
        fund the operation, including possible supplemental 
        appropriations or payments from international 
        organizations, foreign countries, or other donors.
            (E) The extent of involvement of armed forces and 
        other contributions of personnel from other nations.
            (F) The anticipated duration and scope of the 
        operation.
    (3) Such consultations shall continue on a periodic basis 
throughout the period of the deployment.
    (d) Requests for Emergency Supplemental Appropriations.--
Whenever there is a deployment of United States Armed Forces to 
perform an international humanitarian, peacekeeping, or peace-
enforcement operation, the President should seek emergency 
supplemental appropriations to meet the incremental costs to 
the Department of Defense of that deployment not later than 90 
days after the date on which such deployment commences.
    (e) Committees To Be Included in Consultations.--The 
committees referred to in subsection (a) are the following:
            (1) The congressional defense committees.
            (2) The Committee on Foreign Relations of the 
        Senate and the Committee on International Relations of 
        the House of Representatives.
            (3) The Select Committee on Intelligence of the 
        Senate and the Permanent Select Committee on 
        Intelligence of the House of Representatives.
    Sec. 8116. (a) Findings.--The Senate makes the following 
findings:
            (1) The President of France stated on June 13, 
        1995, that the Republic of France plans to conduct 
        eight nuclear test explosions over the next several 
        months.
            (2) The People's Republic of China continues to 
        conduct underground nuclear weapons tests.
            (3) The United States, France, Russia, and Great 
        Britain have observed a moratorium on nuclear testing 
        since 1992.
            (4) A resumption of testing by the Republic of 
        France could result in the disintegration of the 
        current testing moratorium and a renewal of underground 
        testing by other nuclear weapon states.
            (5) A resumption of nuclear testing by the Republic 
        of France raises serious environmental and health 
        concerns.
            (6) The United Nations Conference on Disarmament 
        presently is meeting in Geneva, Switzerland, for the 
        purpose of negotiating a Comprehensive Nuclear Test Ban 
        Treaty (CTBT), which would halt permanently the 
        practice of conducting nuclear test explosions.
            (7) Continued underground weapons testing by the 
        Republic of France and the People's Republic of China 
        undermines the efforts of the international community 
        to conclude a CTBT by 1996, a goal endorsed by 175 
        nations, at the recently completed NPT Extension and 
        Review Conference (the conference for the extension and 
        review of the Nuclear Non-Proliferation Treaty).
    (b) Sense of the Senate.--It is the sense of the Senate 
that the Republic of France and the People's Republic of China 
should abide by the current international moratorium on nuclear 
test explosions and refrain from conducting underground nuclear 
tests in advance of a Comprehensive Test Ban Treaty.
    Sec. 8117. (a) Limitation on Transfer of Defense Articles 
and Services.--Notwithstanding any other provision of law, none 
of the funds available to the Department of Defense for the 
current fiscal year may be obligated or expended to transfer to 
another nation or an international organization any defense 
articles or services (other than intelligence services) for use 
in the activities described in subsection (b) unless the 
congressional defense committees, and the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate are notified 15 
days in advance of such transfer.
    (b) Covered Activities.--(1) This section applies to--
            (A) any international peacekeeping or peace-
        enforcement operation under the authority of chapter VI 
        or chapter VII of the United Nations Charter under the 
        authority of a United Nations Security Council 
        resolution; and
            (B) any other international peacekeeping, peace-
        enforcement, or humanitarian assistance operation.
    (c) Required Notice.--A notice under subsection (a) shall 
include the following:
            (1) A description of the equipment, supplies, or 
        services to be transferred.
            (2) A statement of the value of the equipment, 
        supplies, or services to be transferred.
            (3) In the case of a proposed transfer of equipment 
        or supplies--
                    (A) a statement of whether the inventory 
                requirements of all elements of the Armed 
                Forces (including the reserve components) for 
                the type of equipment or supplies to be 
                transferred have been met; and
                    (B) a statement of whether the items 
                proposed to be transferred will have to be 
                replaced and, if so, how the President proposes 
                to provide funds for such replacement.
    Sec. 8118. None of the funds available to the Department of 
Defense shall be obligated or expended to make a financial 
contribution to the United Nations for the cost of an United 
Nations peacekeeping activity (whether pursuant to assessment 
or a voluntary contribution) or for payment of any United 
States arrearage to the United Nations.
    Sec. 8119. None of the funds made availabale in this Act 
may be used to administer any policy that permits the 
performance of abortions at medical treatment or other 
facilities of the Department of Defense.
    Sec. 8119A. The provision of section 8119 shall not apply 
where the life of the mother would be endangered if the fetus 
were carried to term, or that the pregnancy is the result of an 
act of rape or incest.
    Sec. 8120. None of the funds made available in this Act 
under the heading ``Procurement of Ammunition, Army'' may be 
obligated or expended for the procurement of munitions unless 
such acquisition fully complies with the Competition in 
Contracting Act.
    Sec. 8121. None of the funds in this Act may be used to 
implement any change to the computation of military retired pay 
as required by law in fiscal year 1995 for military personnel 
who entered the Service before September 8, 1980.
    Sec. 8122. None of the funds available to the Department of 
Defense under this Act shall be obligated or expended to pay a 
contractor under a contract with the Department of Defense for 
costs of any amount paid by the contractor to an employee when 
it is made known to the Federal official having authority to 
obligate or expend such funds that--
            (1) such costs are for a bonus or otherwise in 
        excess of the normal salary paid by the contractor to 
        the employee; and
            (2) such bonus is part of restructuring costs 
        associated with a business combination.
    Sec. 8123. None of the funds provided in title II of this 
Act for ``Former Soviet Union Threat Reduction'' may be 
obligated or expended to finance housing for any individual 
when it is made known to the Federal official having authority 
to obligate or expend such funds that such individual was a 
member of the military forces of the Soviet Union or that such 
individual is or was a member of the military forces of the 
Russian Federation.
    Sec. 8124. It is the sense of Congress that none of the 
funds available to the Department of Defense shall be obligated 
or expended for the deployment or participation of United 
States Armed Forces in any peacekeeping operation in Bosnia-
Herzegovina, unless such deployment or participation is 
specifically authorized by a law enacted after the date of 
enactment of this Act: Provided, That this section shall not 
apply to operations of the nature and extent conducted by 
United States Armed Forces in Bosnia-Herzegovina during fiscal 
year 1995, emergency air rescue operations, the airborne 
delivery of humanitarian supplies, or the planning and 
execution of OPLAN 40104 or similar operations to extract 
UNPROFOR personnel.
    Sec. 8125. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$832,000,000 to reflect savings from revised economic 
assumptions, to be distributed as follows:
            Operation and Maintenance, Army, $54,000,000;
            Operation and Maintenance, Navy, $80,000,000;
            Operation and Maintenance, Marine Corps, 
        $9,000,000;
            Operation and Maintenance, Air Force, $51,000,000;
            Operation and Maintenance, Defense-Wide, 
        $36,000,000;
            Operation and Maintenance, Army Reserve, 
        $4,000,000;
            Operation and Maintenance, Navy Reserve, 
        $4,000,000;
            Operation and Maintenance, Marine Corps Reserve, 
        $1,000,000;
            Operation and Maintenance, Air Force Reserve, 
        $3,000,000;
            Operation and Maintenance, Army National Guard, 
        $7,000,000;
            Operation and Maintenance, Air National Guard, 
        $7,000,000;
            Drug Interdiction and Counter-Drug Activities, 
        Defense, $5,000,000;
            Environmental Restoration, Defense, $11,000,000;
            Overseas Humanitarian, Disaster, and Civic Aid, 
        $1,000,000;
            Former Soviet Union Threat Reduction, $2,000,000;
            Defense Health Program, $51,000,000;
            Aircraft Procurement, Army, $9,000,000;
            Missile Procurement, Army, $5,000,000;
            Procurement of Weapons and Tracked Combat Vehicles, 
        Army, $10,000,000;
            Procurement of Ammunition, Army, $6,000,000;
            Other Procurement, Army, $17,000,000;
            Aircraft Procurement, Navy, $29,000,000;
            Weapons Procurement, Navy, $13,000,000;
            Shipbuilding and Conversion, Navy, $42,000,000;
            Other Procurement, Navy, $18,000,000;
            Procurement, Marine Corps, $4,000,000;
            Aircraft Procurement, Air Force, $50,000,000;
            Missile Procurement, Air Force, $29,000,000;
            Other Procurement, Air Force, $45,000,000;
            Procurement, Defense-Wide, $16,000,000;
            Chemical Agents and Munitions Destruction, Defense, 
        $5,000,000;
            Research, Development, Test and Evaluation, Army, 
        $20,000,000;
            Research, Development, Test and Evaluation, Navy, 
        $50,000,000;
            Research, Development, Test and Evaluation, Air 
        Force, $79,000,000;
            Research, Development, Test and Evaluation, 
        Defense-Wide, $57,000,000; and
            Developmental Test and Evaluation, Defense, 
        $2,000,000:
Provided, That these reductions shall be applied proportionally 
to each budget activity, activity group and subactivity group 
and each program, project, and activity within each 
appropriation account.
    Sec. 8126. Notwithstanding any other provision of law, of 
the revenue collected by the Defense Business Operations Fund, 
$117,000,000 shall be made available for obligation and 
expenditure for termination liability, lease and operational 
costs for aircraft to accomplish the VC-137 aircraft mission: 
Provided, That the funds made available pursuant to this 
section shall remain available until expended.
    Sec. 8127. Funds appropriated by this and future Acts under 
the heading ``Missile Procurement, Air Force'' may be obligated 
for payment of satellite on-orbit incentives in the fiscal year 
in which an incentive payment is earned: Provided, That any 
obligation made pursuant to this section may not be entered 
into until 30 calendar days in session after the congressional 
defense committees have been notified that an on-orbit 
incentive payment has been earned.
    Sec. 8128. (a) Not more than a total of $11,000,000 of the 
funds appropriated under the heading ``Research, Development, 
Test and Evaluation, Army'', in title IV of Public Law 103-335, 
and in title IV of this Act, may be made available for support 
of a NATO Alliance Ground Surveillance (AGS) program based on 
the Joint Surveillance/Target Attack Radar System (JSTARS).
    (b) Not more than a total of $6,450,000 of the funds 
appropriated under the heading ``Research, Development, Test 
and Evaluation, Air Force'', in title IV of Public Law 103-335, 
and in title IV of this Act, may be made available for support 
of a NATO Alliance Ground Surveillance (AGS) program based on 
JSTARS.
    Sec. 8129. (a) In addition to any other reductions required 
by this Act, the following funds are hereby reduced from the 
following accounts in title IV of this Act in the specified 
amounts:
            ``Research, Development, Test and Evaluation, 
        Army'', $65,062,000;
            ``Research, Development, Test and Evaluation, 
        Navy'', $116,909,000;
            ``Research, Development, Test and Evaluation, Air 
        Force'', $175,386,000; and
            ``Research, Development, Test and Evaluation, 
        Defense-Wide'', $84,643,000.
    (b) The reductions taken pursuant to subsection (a) shall 
be applied on a pro-rata basis by subproject within each R-1 
program element as modified by this Act, except that no 
reduction may be taken against the funds made available to the 
Department of Defense for Ballistic Missile Defense.
    Sec. 8130. Notwithstanding any other provision of law, 
fixed and mobile telecommunications support shall be provided 
by the White House Communications Agency (WHCA) to the United 
States Secret Service (USSS), without reimbursement, in 
connection with the Secret Service's duties directly related to 
the protection of the President or the Vice President or other 
officer immediately next in order of succession to the office 
of the President at the White House Security Complex in the 
Washington, D.C. Metropolitan Area and Camp David, Maryland. 
For these purposes, the White House Security Complex includes 
the White House, the White House grounds, the Old Executive 
Office Building, the New Executive Office Building, the Blair 
House, the Treasury Building, and the Vice President's 
Residence at the Naval Observatory.
    This Act may be cited as the ``Department of Defense 
Appropriations Act, 1996''.
      And the Senate agree to the same.
                                   Bill Young,
                                   Joseph M. McDade,
                                   Bob Livingston,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   Dave Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Ernest Istook,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Charles Wilson,
                                   W.G. Bill Hefner,
                                   Martin Olav Sabo,
                                           (except to the agreement 
                                               regarding abortion 
                                               funding exception),
                                 Managers on the Part of the House.
                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Kit Bond,
                                   Mitch McConnell,
                                   Connie Mack,
                                   Richard C. Shelby,
                                   Judd Gregg,
                                   Mark Hatfield,
                                   Daniel Inouye,
                                   J. Bennett Johnston,
                                   Robert Byrd,
                                   Patrick Leahy,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
      The managers on the part of the House and the Senate at 
the further conference on the disagreeing votes of the two 
Houses on the amendment of the Senate to the bill (H.R. 2126), 
making appropriations for the Department of Defense for the 
fiscal year ending September 30, 1996, and for other purposes, 
submit the following joint statement to the House and the 
Senate in explanation of the effect of the action agreed upon 
by the managers and recommended in the accompanying conference 
report.
      The conference agreement on the Department of Defense 
Appropriations Act, 1996, incorporates some of the provisions 
of both the House and Senate versions of the bill. The language 
and allocations set forth in House Report 104-208 and Senate 
Report 104-124 should be complied with unless specifically 
addressed in the accompanying bill and statement of the 
managers to the contrary.
      Senate Amendment: The Senate deleted the entire House 
bill after the enacting clause and inserted the Senate bill. 
The conference agreement includes a revised bill.
              DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
      The conferees agree that for the purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177) as amended by the Balanced Budget and Emergency Deficit 
Control Reaffirmation Act of 1987 (Public Law 100-119) and by 
the Budget Enforcement Act of 1990 (Public Law 101-508), the 
term program, project, and activity for appropriations 
contained in this Act shall be defined as the most specific 
level of budget items identified in the Department of Defense 
Appropriations Act, 1996, the accompanying House and Senate 
Committee reports, the conference report and accompanying joint 
explanatory statement of the managers of the Committee of 
Conference, the related classified annexes and reports, and the 
P-1 and R-1 budget justification documents as subsequently 
modified by Congressional action. The following exception to 
the above definition shall apply:
      For the Military Personnel and the Operation and 
Maintenance accounts, the term ``program, project, and 
activity'' is defined as the appropriations accounts contained 
in the Department of Defense Appropriations Act. At the time 
the President submits his budget for fiscal year 1997, the 
conferees direct the Department of Defense to transmit to the 
congressional defense committees a budget justification 
document to be known as the ``O-1'' which shall identify, at 
the budget activity, activity group, and subactivity group 
level, the amounts requested by the President to be 
appropriated to the Department of Defense for operation and 
maintenance in any budget request, or amended budget request, 
for fiscal year 1997.
                      TITLE I--MILITARY PERSONNEL
      The conferees agree to the following amounts and end 
strength totals for the Military Personnel accounts as follows:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Active personnel:                                                                                               
    Army........................................      19,721,408      19,884,608      19,776,587      19,946,187
    Navy........................................      16,930,609      17,006,363      16,979,209      17,008,563
    Marine Corps................................       5,877,740       5,928,340       5,886,540       5,885,740
    Air Force...................................      17,108,120      17,294,620      17,156,443      17,207,743
Reserve personnel:                                                                                              
    Army........................................       2,101,366       2,122,566       2,102,466       2,122,466
    Navy........................................       1,348,223       1,350,023       1,349,323       1,355,523
    Marine Corps................................         361,751         366,101         364,551         378,151
    Air Force...................................         782,761         783,586         783,861         784,586
National Guard personnel:                                                                                       
    Army........................................       3,218,258       3,240,858       3,222,422       3,242,422
    Air Force...................................       1,246,427       1,254,827       1,259,627       1,259,627
                                                 ---------------------------------------------------------------
      Total, Military Personnel.................      68,696,663      69,231,892      68,881,029      69,191,008
----------------------------------------------------------------------------------------------------------------
           operations provide comfort/enhanced southern watch
      The conference agreement includes $647,100,000, as 
proposed by the House, for unbudgeted costs associated with 
Operations Provide Comfort and Enhanced Southern Watch. Of this 
amount, $77,500,000 is appropriated in Title I, Military 
Personnel, and $569,600,000 is appropriated in Title II, 
Operation and Maintenance. The conferees designate these funds 
as an item of Congressional interest, meaning they can only be 
used for additional incremental costs of Operations Provide 
Comfort and Enhanced Southern Watch unless prior approval is 
granted by the House and Senate Committees on Appropriations 
through normal reprogramming procedures. In addition, the 
conferees direct that none of these funds may be obligated or 
expended unless the costs of these operations are fully 
submitted in the President's fiscal year 1997 budget request. 
The conferees direct that funds shall be available for 
obligation only after submission of the fiscal year 1997 budget 
request, and only if the request fully funds and details the 
estimated costs of these operations. The conferees direct the 
Secretary of Defense to provide a report to the House and 
Senate Committees on Appropriations by January 30, 1996, on 
planned obligations and expenditures of these funds.
                        force structure changes
      The conferees recommend an increase of $38,500,000 to 
maintain fiscal year 1995 Primary Authorized Aircraft (PAA) 
levels in Air National Guard general purpose fighter forces 
during fiscal year 1996.
      The conferees recommend an increase of $34,200,000 to 
sustain the maritime patrol aircraft force structure at 13 
active and 9 reserve squadrons in fiscal year 1996.
      The conferees also recommend an increase of $9,600,000 
for additional Marine Corps Reserve full-time support, in order 
to facilitate the Marine Corps Reserve's contingency role and 
operations.
                       army personnel shortfalls
      The conferees recommend an increase of $137,000,000 to 
``Military Personnel, Army'' to cover unfunded requirements 
associated with the downsizing of Army forces. Previous 
congressional limitations on end strength and other Army 
manpower assumptions have contributed to an increase in the 
cost of the force since anticipated personnel losses did not 
occur as planned. The conferees agree this is necessary in 
order to prevent readiness and quality of life problems during 
the fiscal year.
        military technician and medical personnel reprogramming
      The conferees direct that the Department of Defense, in 
the event of sequestration during fiscal year 1996, protect 
military (civilian) technicians and medical personnel necessary 
to maintain the current level of medical and Reserve Component 
operations, from any associated reduction of personnel pay and 
medical programs (to include CHAMPUS).
                      basic allowance for quarters
      The conferees agree to provide $72,366,000, as proposed 
by the Senate, for an increase in the Basic Allowance for 
Quarters, to be effective January 1, 1996.
                           ACTIVE END STRENGTH                          
                           [Fiscal year 1996]                           
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Army.............................      495,000      495,000  ...........
Navy.............................      428,000      428,340         +340
Marine Corps.....................      174,000      174,000  ...........
Air Force........................      388,200      388,200  ...........
                                  --------------------------------------
      Total......................    1,485,200    1,485,540         +340
------------------------------------------------------------------------
                        Military Personnel, Army
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Provide Comfort/Enhanced Southern                                       
 Watch...........................        3,600  ...........        3,600
Overseas Station Allowance.......      139,000       32,000       61,000
Selective Reenlistment Bonus.....       -1,200  ...........  ...........
Basic Allowance for Quarters.....       12,000       23,179       23,179
Variable Housing Allowance.......        9,800  ...........  ...........
Manpower shortfalls..............  ...........  ...........      137,000
                                  --------------------------------------
      Total, Military Personnel,                                        
       Army......................     +163,200      +55,179     +224,779
------------------------------------------------------------------------
                        Military Personnel, Navy
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........       -1,000  ...........       -1,000
Responsibility Pay...............       -1,146  ...........       -1,146
Provide Comfort/Enhanced Southern                                       
 Watch...........................       25,500  ...........       25,500
Overseas Station Allowance.......       45,000       32,000       24,000
Selective Reenlistment Bonus.....      -25,000  ...........  ...........
Basic Allowance for Quarters.....       11,600       16,600       16,600
Variable Housing Allowance.......       20,800  ...........  ...........
P-3 Squadron.....................  ...........  ...........       14,000
                                  --------------------------------------
      Total, Military Personnel,                                        
       Navy......................      +75,754      +48,600      +77,954
------------------------------------------------------------------------
                    Military Personnel, Marine Corps
      The conference agreement on items addressed by either the 
House or Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........         -200  ...........         -200
Provide Comfort/Enhanced Southern                                       
 Watch...........................        3,400  ...........        3,400
Overseas Station Allowance.......       43,000        4,000  ...........
Selective Reenlistment Bonus.....       -4,000  ...........  ...........
Basic Allowance for Quarters.....        3,200        4,800        4,800
Variable Housing Allowance.......        5,200  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Marine Corps..............      +50,600       +8,800       +8,000
------------------------------------------------------------------------
                     Military Personnel, Air Force
      The conference agreement on items addressed by either the 
House or Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........       -4,400  ...........       -4,400
Aviation Career Incentive Pay....         -800  ...........         -800
Flight Duty Pay..................         -500  ...........         -500
Provide Comfort/Enhanced Southern                                       
 Watch...........................       45,000  ...........       45,000
Overseas Station Allowance.......       73,000       32,000       44,000
Selective Reenlistment Bonus.....      -12,000  ...........  ...........
Basic Allowance for Quarters.....       11,000       16,323       16,323
Variable Housing Allowance.......       10,200  ...........  ...........
B-52 Force Structure.............       65,000  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Air Force.................     +186,500      +48,323      +99,623
------------------------------------------------------------------------
                   National Guard and Reserve Forces
      The conferees agree to provide $9,142,775,000 in Reserve 
personnel appropriations, $8,815,232,000 in Operation and 
maintenance appropriations, and $777,000,000 in the National 
Guard and Reserve Equipment appropriation. These funds support 
a Selected Reserve strength of 930,980 as shown below.
                            RESERVE STRENGTHS                           
                           [Fiscal year 1996]                           
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
  Selected Reserve:                                                     
    Army Reserve.................      230,000      230,000  ...........
    Navy Reserve.................       98,608       98,877         +269
    Marine Corps Reserve.........       42,000       42,000  ...........
    Air Force Reserve............       73,969       74,007          +38
    Army National Guard..........      373,000      373,000  ...........
    Air National Guard...........      109,458      112,458       +3,000
                                  --------------------------------------
      Total......................      927,035      930,342       +3,307
  AGR/TARS:                                                             
    Army Reserve.................       11,575       11,575  ...........
    Navy Reserve.................       17,490       17,605         +115
    Marine Corps Reserve.........        2,285        2,559         +274
    Air Force Reserve............          628          628  ...........
    Army National Guard..........       23,390       23,390  ...........
    Air National Guard...........        9,817       10,066         +249
                                  --------------------------------------
      Total......................       65,185       65,823         +638
  Technicians:                                                          
    Army Reserve.................        6,409        6,630         +221
    Air Force Reserve............        9,467        9,802         +335
    Army National Guard..........       25,094       25,500         +406
    Air National Guard...........       22,558       23,399         +841
                                  --------------------------------------
      Total......................       63,528       65,331       +1,803
------------------------------------------------------------------------
                    military (civilian) technicians
      The conferees recommend an increase of $40,500,000 in the 
Operation and Maintenance accounts of the Army Reserve, Air 
Force Reserve, Army National Guard, and Air National Guard for 
additional military (civilian) technicians. The conferees 
remain concerned about the significant reduction to military 
technicians contained in the President's budget request and 
expect these funds to not be used for any other purpose without 
a prior approval reprogramming being submitted through normal 
channels. Additionally, the conferees direct the Department to 
provide the required number of workyears needed to sustain the 
levels of military (civilian) technicians as provided in this 
Act. The conferees also include a general provision (Section 
8087) which prohibits reducing the full-time support levels for 
technicians unless such technicians are a result of a reduction 
in military force structure. The conferees expect the 
Department to follow the intent of this provision.
                        Reserve Personnel, Army
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Unit Readiness/Training..........       20,000  ...........       20,000
Basic Allowance for Quarters.....          500        1,100        1,100
Variable Housing Allowance.......          700  ...........  ...........
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Army......................      +21,200       +1,100      +21,100
------------------------------------------------------------------------
                        Reserve Personnel, Navy
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Basic Allowance for Quarters.....          700        1,100        1,100
Variable Housing Allowance.......        1,100  ...........  ...........
P-3 Squadron.....................  ...........  ...........        6,200
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Navy......................       +1,800       +1,100       +7,300
------------------------------------------------------------------------
                    Reserve Personnel, Marine Corps
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Annual Training/School Tours.....        4,000  ...........        4,000
Basic Allowance for Quarters.....          150        2,800        2,800
Variable Housing Allowance.......          200  ...........  ...........
Increase of Active Reservists....  ...........  ...........        9,600
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Marine Corps..............       +4,350       +2,800      +16,400
------------------------------------------------------------------------
                      Reserve Personnel, Air Force
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
WC-130 Weather Reconn............          725  ...........          725
Basic Allowance for Quarters.....          100        1,100        1,100
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Air Force.................         +825       +1,100       +1,825
------------------------------------------------------------------------
                     National Guard Personnel, Army
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
School/Special Training..........       20,000  ...........       20,000
Basic Allowance for Quarters.....        1,300        4,164        4,164
Variable Housing Allowance.......        1,300  ...........  ...........
                                  --------------------------------------
      Total, National Guard                                             
       Personnel, Army...........       22,600        4,164       24,164
------------------------------------------------------------------------
                  National Guard Personnel, Air Force
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Tanker Task Force/1st Air Force..        7,200  ...........  ...........
Basic Allowance for Quarters.....          500        1,200        1,200
Variable Housing Allowance.......          700  ...........  ...........
Fighter Force Structure..........  ...........       12,000       12,000
                                  --------------------------------------
      Total, National Guard                                             
       Personnel, Air Force......        8,400       13,200       13,200
------------------------------------------------------------------------
                 support of the u.s. antarctic program
      The conferees agree to continue the Department of Defense 
support to the U.S. Antarctic Program. However, in light of the 
Congressional requirement for the National Science and 
Technology Council to undertake a Government-wide policy review 
of DoD's role in the Antarctic program no later than March 31, 
1996, future Defense involvement in this mission will be 
reassessed after receipt of that report. The conferees believe 
that Air National Guard participation in this project is 
predicated only on full reimbursement by the National Science 
Foundation and shall not conflict with any other Air National 
Guard mission.
                  TITLE II--OPERATION AND MAINTENANCE
      A summary of the conference agreement on items addressed 
by either the House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference  
----------------------------------------------------------------------------------------------------------------
                RECAPITULATION                                                                                  
O & M, ARMY.................................      18,134,736       18,998,131       17,947,229       18,321,965 
    TRANSFER--STOCKPILE.....................         (50,000)         (50,000)         (50,000)         (50,000)
 O & M, NAVY................................      21,175,710       20,846,710       21,195,301       21,279,425 
    TRANSFER--STOCKPILE.....................         (50,000)         (50,000)         (50,000)         (50,000)
O & M, MARINE CORPS.........................       2,269,722        2,508,822        2,341,737        2,392,522 
O & M, AIR FORCE............................      18,206,597       18,873,793       18,202,437       18,561,267 
    TRANSFER--STOCKPILE.....................         (50,000)         (50,000)         (50,000)         (50,000)
O & M, DEFENSEWIDE..........................      10,366,782        9,908,810        9,904,068       10,388,595 
O & M, ARMY RESERVE.........................       1,068,591        1,119,191        1,068,312        1,119,191 
O & M, NAVY RESERVE.........................         826,042          841,565          826,042          859,542 
O & M, MARINE CORPS RESERVE.................          90,283          102,079           90,283          100,283 
O & M, AIR FORCE RESERVE....................       1,485,947        1,519,287        1,485,947        1,519,287 
O & M, ARMY NATIONAL GUARD..................       2,304,108        2,334,487        2,361,708        2,440,808 
O & M, AIR NATIONAL GUARD...................       2,712,221        2,737,221        2,724,021        2,776,121 
NATL BOARD FOR THE PROMOTION OF RIFLE                                                                           
 PRACTICE, ARMY.............................  ...............  ...............  ...............  ...............
COURT OF MILITARY APPEALS, DEFENSE..........           6,521            6,521            6,521            6,521 
ENVIRONMENTAL RESTORATION, DEFENSE..........       1,622,200        1,422,200        1,487,000        1,422,200 
SUMMER OLYMPICS.............................          15,000           15,000           15,000           15,000 
SPECIAL OLYMPICS............................  ...............  ...............  ...............  ...............
HUMANITARIAN ASSISTANCE.....................          79,790   ...............          60,000   ...............
FORMER SOVIET UNION THREAT REDUCTION........         371,000          200,000          325,000          300,000 
CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING                                                                    
 AND PEACE ENFORCEMENT ACTIVITIES FUND......          65,000   ...............  ...............  ...............
OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC                                                                      
 AID........................................  ...............          50,000   ...............          50,000 
                                             -------------------------------------------------------------------
      GRAND TOTAL, O & M....................      80,800,250       81,483,817       79,940,606       81,552,727 
        TRANSFER............................        (150,000)        (150,000)        (150,000)        (150,000)
                                             -------------------------------------------------------------------
          TOTAL FUNDS AVAILABLE, O & M......      80,950,250       81,633,817       80,090,606       81,702,727 
----------------------------------------------------------------------------------------------------------------
              budget justification and execution materials
      The conferees are encouraged by the steps the Department 
has taken to improve the Operation and maintenance program 
justification materials submitted to the Congress. In order to 
further these efforts, the conferees direct the Department to:
            provide the Committees on Appropriations quarterly 
        budget execution reports for all Operation and 
        maintenance accounts for fiscal year 1996. These 
        reports should reflect the O-1 categories used in the 
        budget justification materials. Reports should be 
        submitted within 60 days of the end of the quarter to 
        which they apply, concurrently to the Office of 
        Management and Budget;
            provide the Committees on Appropriations quarterly 
        reports describing the execution of real property 
        maintenance programs. These reports should describe 
        those activities specifically and/or generally 
        described by the Congress and should separately 
        identify activity related to barracks renovation. Real 
        Property Maintenance is designated an item of 
        congressional interest; transfers from real property 
        maintenance programs to other activities are subject to 
        prior-notification reprogramming procedures.
      The conferees agree that proposed transfers of funds 
between O-1 budget activity funding categories in excess of 
$20,000,000 are subject to normal reprogramming procedures. In 
addition, due to continuing concerns about force readiness and 
the possible diversion of Operation and maintenance funds, the 
conferees agree that the Department should provide written 
notification to the congressional defense committees prior to 
transfers in excess of $20,000,000 from the following 
subactivity group categories:
O&M, Army
      Operating forces: Combat units; Tactical support; Force 
related training/special activities; Depot maintenance.
O&M, Navy
      Operating forces: Mission and other flight operations; 
Aircraft depot maintenance; Mission and other ship operations; 
Ship depot maintenance.
O&M, Marine Corps
      Operating forces: Operational forces
O&M, Air Force
      Operating forces: Primary combat forces; Primary combat 
weapons; Air operations training. Mobilization: Airlift 
operations.
                          financial management
      The conferees are concerned about the state of financial 
management in the Department of Defense and the measures that 
may be taken to improve upon past performance. Both the House 
and Senate reports on the fiscal year 1996 Department of 
Defense Appropriations Bill recommended several items for the 
Department's consideration. These items should be merged into a 
single report due to the Committees on Appropriations not later 
than May 31, 1996. The DoD report should address the following 
issues:
            the state of Defense Finance and Accounting Service 
        (DFAS) consolidation and future reorganization plans. 
        Of specific interest are DoD plans concerning 
        establishment of 20 DFAS operating locations;
            opportunities for utilizing private sector 
        financial services to meet non-unique departmental 
        requirements such as travel processing, payroll and 
        contract disbursements;
            procedural changes designed to improve DoD 
        performance in the areas of unmatched disbursements and 
        negative unliquidated obligations;
            the estimated resource requirements to achieve long 
        term improvements of DoD financial management 
        procedures and systems.
                       Real Property Maintenance
      The conferees agree with the Senate in providing an 
additional $322,000,000 for barracks renovation. The conferees 
have provided a total increase of $700,000,000 to the Real 
Property Maintenance account.
------------------------------------------------------------------------
                                                                Total   
                                     Barracks    Other RPM    additional
                                    renovation                   RPM    
------------------------------------------------------------------------
Army.............................      100,000       67,000      167,000
Navy.............................      100,000       55,000      155,000
Air Force........................      100,000       51,000      151,000
Marine Corps.....................       22,000       38,000       60,000
Army National Guard..............  ...........      100,000      100,000
Army Reserve.....................  ...........       17,000       17,000
Navy Reserve.....................  ...........       20,000       20,000
Marine Corps Reserve.............  ...........        1,500        1,500
Air National Guard...............  ...........       15,000       15,000
Air Force Reserve................  ...........       13,500       13,500
                                  --------------------------------------
      Total......................      322,000      378,000      700,000
------------------------------------------------------------------------
                           security programs
      The conferees agree to reduce the military departments' 
security program accounts and the On-Site Inspection Agency. In 
order to meet emergent requirements stemming from valid treaty 
obligations, the conferees expect the Department of Defense to 
submit a reprogramming request subject to normal, prior 
approval reprogramming procedures.
                      transportation improvements
      The conferees agree that the Department of Defense should 
be able to improve the efficiency of the transportation 
organizations and infrastructure under the control of the U.S. 
Transportation Command (USTRANSCOM). The conferees direct that 
the Department of Defense report to the congressional defense 
committees not later than March 31, 1996, on measures that will 
be taken to achieve improvements in this area.
             international military training and education
      The conferees express their continued support for the 
International Military Education and Training Program. The 
conferees note however that this program is funded within 
international affairs programs and is properly within the 
jurisdiction of the Subcommittees on Foreign Operations. 
Therefore, the conferees direct that no funds appropriated in 
this Act be used for foreign operations costs associated with 
the International Military Education and Training program.
                    defense commissary access policy
      The conferees direct a report be made by the General 
Accounting Office to the Committee on Appropriations of the 
Senate and the House of Representatives on any changes in DoD 
commissary access policy, including providing reservists new or 
additional privileges, and addressing any resulting financial 
impact on the commissaries.
       military traffic management command reengineering program
      The conferees direct the Department of Defense to provide 
a report on its pilot program to implement commercial business 
practices and standards of service for its movement of military 
household goods, to the congressional defense committees by 
March 1, 1997. This report should fully assess how the pilot 
program impacts the government's transportation costs as 
compared to the current program. The conferees expect the 
Department to fairly evaluate the present program as modified 
by the removal of government unique terms, conditions and 
regulations and using simplified procedures. This analysis 
shall determine whether the proposed reengineering of the 
current program is economically justified, can achieve a higher 
level of service and lower claims frequency.
      In addition, the conferees direct the Department to 
report by January 1, 1996, prior to the implementation of any 
element of the pilot program, on its impact on small businesses 
resulting from, but not limited to, the application of the 
Federal Acquisition Regulations, and the requirement of any 
program elements that are not standard commercial business 
practices.
                    Operation and Maintenance, Army
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
          OPERATION AND MAINTENANCE, ARMY                                                                       
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    LAND FORCES:                                                                                                
        COMBAT UNITS............................      1,882,069       1,882,069       1,882,069       1,882,069 
        TACTICAL SUPPORT........................      1,165,970       1,165,970       1,165,970       1,165,970 
        THEATER DEFENSE FORCES..................        178,670         178,670         178,670         178,670 
        FORCE RELATED TRAINING/SPECIAL                                                                          
         ACTIVITIES.............................      1,271,154       1,271,154       1,285,154       1,271,154 
        FORCE COMMUNICATIONS....................         73,584          73,584          73,584          73,584 
        DEPOT MAINTENANCE.......................        861,426       1,065,426         890,426         950,696 
        JCS EXERCISES...........................         54,467          54,467          54,467          54,467 
        BASE SUPPORT............................      3,582,306       3,612,306       3,618,129       3,612,306 
    LAND OPERATIONS SUPPORT:                                                                                    
        COMBAT DEVELOPMENTS.....................        214,364         214,364         214,364         214,364 
        UNIFIED COMMANDS........................         36,937          36,937          36,937          36,937 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............      9,320,947       9,554,947       9,399,770       9,440,217 
                                                 ===============================================================
  BUDGET ACTIVITY 2: MOBILIZATION:                                                                              
    MOBILITY OPERATIONS:                                                                                        
        POMCUS..................................         86,830          86,830          86,830          86,830 
        STRATEGIC MOBILIZATION..................        393,923         482,923         388,923         423,923 
        WAR RESERVE ACTIVITIES..................         72,166          72,166          72,166          72,166 
        INDUSTRIAL PREPAREDNESS.................        143,841         143,841         143,841         143,841 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 2..............        696,760         785,760         691,760         726,760 
                                                 ===============================================================
  BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                   
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION.....................         58,328          58,328          58,328          58,328 
        RECRUIT TRAINING........................         11,228          11,228          11,228          11,228 
        ONE STATION UNIT TRAINING...............         17,008          17,008          17,008          17,008 
        RESERVE OFFICER TRAINING CORPS (ROTC)...        109,789         109,789         109,789         109,789 
        BASE SUPPORT (ACADEMY ONLY).............        118,445         118,445         118,445         118,445 
    BASIC SKILL/ADVANCE TRAINING:                                                                               
        SPECIALIZED SKILL TRAINING..............        236,760         302,760         260,760         281,760 
        FLIGHT TRAINING.........................        218,514         218,514         218,514         218,514 
        PROFESSIONAL DEVELOPMENT EDUCATION......         68,981          68,981          68,981          68,981 
        TRAINING SUPPORT........................        375,528         375,528         375,528         375,528 
        BASE SUPPORT (OTHER TRAINING)...........      1,160,360       1,160,360       1,171,960       1,160,360 
    RECRUITING/OTHER TRAINING:                                                                                  
        RECRUITING AND ADVERTISING..............        211,375         217,875         216,375         216,375 
        EXAMINING...............................         64,333          64,333          64,333          64,333 
        OFF-DUTY AND VOLUNTARY EDUCATION........        103,812         103,812         103,812         103,812 
        CIVILIAN EDUCATION AND TRAINING.........         81,108          81,108          81,108          81,108 
        JUNIOR ROTC.............................         74,506          74,506          74,506          74,506 
        BASE SUPPORT (RECRUITING LEASES)........        156,020         156,020         156,020         156,020 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..............      3,066,095       3,138,595       3,106,695       3,116,095 
                                                 ===============================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                        
 ACTIVITIES:                                                                                                    
    SECURITY PROGRAMS:                                                                                          
        SECURITY PROGRAMS.......................        362,333         362,333         356,333         356,333 
    LOGISTICS OPERATIONS:                                                                                       
        SERVICEWIDE TRANSPORTATION..............        542,910         542,910         542,910         542,910 
        CENTRAL SUPPLY ACTIVITIES...............        487,281         475,281         487,281         491,031 
        LOGISTIC SUPPORT ACTIVITIES.............        299,230         299,230         299,230         299,230 
        AMMUNITION MANAGEMENT...................        300,853         300,853         300,853         300,853 
    SERVICEWIDE SUPPORT:                                                                                        
        ADMINISTRATION..........................        275,238         265,238         275,588         275,588 
        SERVICEWIDE COMMUNICATIONS..............        686,446         686,446         686,446         686,446 
        MANPOWER MANAGEMENT.....................        124,676         124,676         124,676         124,676 
        OTHER PERSONNEL SUPPORT.................        175,832         169,832         175,832         172,832 
        OTHER SERVICE SUPPORT...................        568,225         568,225         571,225         571,225 
        ARMY CLAIMS ACTIVITIES..................        173,290         173,290         173,290         173,290 
        REAL ESTATE MANAGEMENT..................         86,930          86,930          86,930          86,930 
        BASE SUPPORT............................        735,466         759,566         752,816         735,466 
        PENTAGON RENOVATION TRANSFER............  ..............  ..............        -44,130         -44,130 
    SUPPORT OF OTHER NATIONS:                                                                                   
        INTERNATIONAL MILITARY HEADQUARTERS.....        252,778         252,778         252,778         252,778 
        MISC SUPPORT OF OTHER NATIONS...........         29,446          29,446          29,446          29,446 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..............      5,100,934       5,097,034       5,071,504       5,054,904 
                                                 ===============================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED...............  ..............          3,589          -1,800           4,089 
CIVILIAN PERSONNEL UNDERSTRENGTH................  ..............        -65,000         -67,000         -67,000 
FAMILY HOUSING SURVEY & DEFICIT REDUCTION                                                                       
 PROGRAM........................................  ..............  ..............          3,500           3,500 
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE                                                                   
 FUND...........................................        -50,000         -50,000         -50,000         -50,000 
REAL PROPERTY MAINTENANCE.......................  ..............        350,000   ..............        167,000 
FOREIGN CURRENCY FLUCTUATION....................  ..............        173,300   ..............         59,300 
EDCARS/DSREDS...................................  ..............          2,000   ..............          2,000 
PRINTING EFFICIENCIES...........................  ..............         -3,000          -3,000          -3,000 
INSPECTOR GENERAL CONSOLIDATION.................  ..............        -12,500   ..............        -12,500 
REDUCED AUDITS..................................  ..............        -10,000         -10,000         -10,000 
TRANSPORTATION IMPROVEMENTS.....................  ..............        -26,200         -26,200         -26,200 
ADMINISTRATIVE TRAVEL SAVINGS...................  ..............  ..............        -17,500         -28,500 
BARRACKS RENOVATION INITIATIVES.................  ..............  ..............        100,000   ..............
AAFES 2ND DESTINATION TRANSPORTATION............  ..............        -17,500         -17,500         -17,500 
PROVIDE COMFORT/ENHANCED SOUTHERN WATCH.........  ..............         87,300   ..............         87,300 
SUPPLY MANAGEMENT REFORMS.......................  ..............         -8,500   ..............         -8,500 
CIVILIAN PAY....................................  ..............  ..............       -233,000        -116,000 
OPERATIONAL SUPPORT AIRLIFT.....................  ..............         -1,694   ..............  ..............
                                                 ===============================================================
      TOTAL, OPERATION AND MAINTENANCE, ARMY....     18,134,736      18,998,131      17,947,229      18,321,965 
TRANSFER........................................        (50,000)        (50,000)        (50,000)        (50,000)
                                                 ---------------------------------------------------------------
      TOTAL FUNDING AVAILABLE...................    (18,184,736)    (19,048,131)    (17,997,229)    (18,371,965)
----------------------------------------------------------------------------------------------------------------
                    Adjustments to Budget Activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Communications/Electronics Maintenance....................   39,000 
    Other Depot Maintenance...................................   66,000 
    Depot Maintenance Logistics Tail..........................  (15,730)
    NTC Interim Airhead.......................................    2,000 
    Base Operations Support...................................   28,000 
  Budget Activity 2: Mobilization:
    Prepositioning Ships......................................   (5,000)
    Prepositioned Materiel, S.W. Asia.........................   16,000 
    Prepositioned Materiel, Korea.............................   19,000 
  Budget Activity 3: Training and Recruiting:
    TNET......................................................    4,000 
    Chemical/Biological Defense Training......................   20,000 
    Simulation Enhancements...................................   21,000 
    Recruiting and Advertising................................    5,000 
  Budget Activity 4: Administration and Servicewide 
    Activities:
    Security Programs (Arms Control)..........................   (6,000)
    Acquisition Reform........................................  (12,000)
    Depot Maintenance Logistics Tail..........................   15,750 
    Waste Water Treatment Planning............................      350 
    Personnel Management Efficiencies.........................   (3,000)
    Conservation and Ecosystem Management.....................    3,000 
    Pentagon Renovation Transfer..............................  (44,130)
  Other Adjustments:
    Civilian Underexecution...................................  (67,000)
    Family Housing Survey/Deficit Reduction Program...........    3,500 
    Foreign Currency..........................................   59,300 
    Inspector General Consolidation...........................  (12,500)
    Administrative Travel Savings/Executive Transport.........  (28,500)
    Provide Comfort/Enhanced Southern Watch...................   87,300 
    Supply Management Reform..................................   (8,500)
    Civilian Personnel Pay.................................... (116,000)
                  conventional ammunition maintenance
      The conferees direct that of the funds provided for 
conventional ammunition care and maintenance, the Army shall 
expend not less than $300,853,000 for this purpose.
                            national presto
      The conferees direct that not less than $15,000,000 be 
made available in the ``Operation and Maintenance, Army'' 
account only for the remediation of environmental contamination 
at the National Presto Industries, Inc. site in Eau Claire, 
Wisconsin. These funds are to be made available only for the 
implementation and execution of the 1988 agreement between the 
Department of the Army and National Presto Industries, Inc., 
within sixty days of the enactment of this Act and without 
being made subject to any studies, reports or other pre-
conditions that would in any way delay or obstruct the 
obligation and disbursal of the funds. The conferees are 
satisfied that sufficient studies of this matter already have 
been done.
                   life sciences equipment laboratory
      The conferees direct that the Army shall make available 
$500,000 to the Life Sciences Equipment Laboratory at Kelly 
AFB, Texas, for work in support of the Joint Task Force--Full 
Accounting.
                   fort wainwright emergency repairs
      The conferees agree to provide $8,000,000 of available 
funds, for emergency repairs for the Fort Wainwright Central 
Heat and Power Plant.
               contractor-operated parts stores (copars)
      The conferees are concerned by the issues raised in a 
recent GAO study of the COPARS program questioning the 
methodology used by certain military commanders to justify the 
use of alternative approaches. The conferees direct the 
services to suspend all efforts directed toward the elimination 
of COPARS unless and until economic analyses are approved that 
clearly show other alternatives to be more cost-effective. Such 
economic analyses must compare like items of cost (including 
labor and overhead costs of any COPARS alternative) and must 
fully address the concerns about earlier analyses cited in the 
GAO report. To ensure the fairness and objectivity of any such 
analysis, the conferees direct the Secretary to designate a 
single point of contact within the Office of the Secretary of 
Defense for approval of study methodology and any final 
recommendations.
                    Operation and Maintenance, Navy
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
          OPERATION AND MAINTENANCE, NAVY                                                                       
  Budget Activity 1: Operating forces:                                                                          
    Air operations:                                                                                             
        Mission and other flight operations.....      1,788,301       1,788,301       1,788,301       1,796,301 
        Fleet air training......................        627,871         627,871         642,166         642,166 
        Intermediate maintenance................         68,070          68,070          68,070          68,070 
        Air operations and safety support.......         59,060          59,060          59,060          59,060 
        Aircraft depot maintenance..............        489,443         539,443         489,443         514,443 
        Aircraft depot operations support.......         28,232          28,232          28,232          28,232 
        Base support............................      1,205,651       1,233,151       1,217,651       1,205,651 
    Ship operations:                                                                                            
        Mission and other ship operations.......      1,885,234       1,885,234       1,885,234       1,885,234 
        Ship operational support and training...        462,396         462,396         462,396         462,396 
        Intermediate maintenance................        401,812         401,812         401,812         401,812 
        Ship depot maintenance..................      2,261,190       2,331,190       2,411,190       2,411,190 
        Ship depot operations support...........        758,320         758,320         758,320         758,320 
        Base support............................      1,110,058       1,137,558       1,121,058       1,110,058 
    Combat operations/support:                                                                                  
        Combat communications...................        198,415         198,415         198,415         198,415 
        Electronic warfare......................          7,396           7,396           7,396           7,396 
        Space systems and surveillance..........        153,881         153,881         153,881         153,881 
        Warfare tactics.........................        138,256         138,256         138,256         138,256 
        Operational meteorology and oceanography        198,719         198,719         198,719         198,719 
        Combat support forces...................        339,888         339,888         339,888         339,888 
        Equipment maintenance...................        145,820         145,820         145,820         145,820 
        Depot operations support................          1,127           1,127           1,127           1,127 
        Base support............................        398,298         398,298         402,278         398,298 
    Weapons support:                                                                                            
        Cruise missile..........................         96,656          96,656          96,656          96,656 
        Fleet ballistic missile.................        788,463         788,463         788,463         788,463 
        In-service weapons systems support......         25,945          25,945          25,945          25,945 
        Weapons maintenance.....................        401,879         411,879         401,879         406,879 
        Base support............................        111,176         111,176         112,286         111,176 
        DBOF support............................        695,100   ..............        695,100         595,100 
                                                 ---------------------------------------------------------------
          Total, budget activity 1..............     14,846,657      14,336,557      15,039,042      14,948,952 
                                                 ===============================================================
  Budget activity 2: Mobilization:                                                                              
    Ready reserve and prepositioning forces:                                                                    
        Ship prepositioning and surge...........        511,034         511,034         511,034         511,034 
    Activations/inactivations:                                                                                  
        Aircraft activations/inactivations......          7,215           7,215           7,215           7,215 
        Ship activations/inactivations..........        472,386         472,386         472,386         472,386 
    Mobilization preparedness:                                                                                  
        Fleet hospital program..................         16,162          16,162          16,162          16,162 
        Industrial readiness....................          1,917           1,917           1,917           1,917 
        Coast Guard support.....................         21,514          21,514          21,514          21,514 
                                                 ---------------------------------------------------------------
          Total, budget activity 2..............      1,030,228       1,030,228       1,030,228       1,030,228 
                                                 ===============================================================
  Budget activity 3: Training and recruiting:                                                                   
    Accession training:                                                                                         
        Officer acquisition.....................         66,755          66,755          66,755          66,755 
        Recruit training........................          4,667           4,667           4,667           4,667 
        Reserve Officers Training Corps (ROTC)..         64,836          64,836          64,836          64,836 
        Base support............................        112,811         112,811         113,311         112,811 
    Basic skills and advanced training:                                                                         
        Specialized skill training..............        212,121         222,121         222,121         222,121 
        Flight training.........................        273,004         273,004         273,004         273,004 
        Professional development education......         61,214          61,214          61,214          61,214 
        Training support........................        125,237         125,237         125,237         125,237 
        Base support............................        415,830         415,830         419,980         415,830 
    Recruiting, and other training and                                                                          
     education:                                                                                                 
        Recruiting and advertising..............        122,820         128,820         127,820         127,820 
        Off-duty and voluntary education........         54,970          54,970          54,970          54,970 
        Civilian education and training.........         22,223          22,223          22,223          22,223 
        Junior ROTC.............................         24,382          24,382          24,382          24,382 
        Base support............................            822             822             822             822 
                                                 ---------------------------------------------------------------
          Total, budget activity 3..............      1,561,692       1,577,692       1,581,342       1,576,692 
                                                 ===============================================================
  Budget activity 4: Admin & servicewide                                                                        
 activities:                                                                                                    
    Servicewide support:                                                                                        
        Administration..........................        605,287         595,287         605,287         605,287 
        External relations......................         21,684          21,684          21,684          21,684 
        Civilian manpower and person management.         63,166          59,166          59,166          61,166 
        Military manpower and person management.        139,864         139,864         139,864         139,864 
        Other personnel support.................        395,629         414,229         405,629         395,629 
        Servicewide communications..............        261,463         261,463         288,463         288,463 
        Base support............................        271,900         271,900         274,600         271,900 
    Logistics operations and technical support:                                                                 
        Servicewide transportation..............        147,132         147,132         147,132         147,132 
        Planning, engineering and design........        249,620         249,620         249,620         249,620 
        Acquisition and program management......        426,404         409,404         426,404         412,904 
        Air systems support.....................        302,011         302,011         302,011         302,011 
        Hull, mechanical and electrical support.         60,022          60,022          60,022          60,022 
        Combat/weapons systems..................         41,632          51,632          41,632          51,632 
        Space and electronic warfare systems....         68,111          68,111          68,111          68,111 
        Base support............................        158,334         158,334         158,334         158,334 
        Pentagon renovation transfer............  ..............  ..............        -33,330         -33,330 
    Security programs:                                                                                          
        Security Programs.......................        556,805         556,805         549,805         549,805 
        Base support............................         10,674          10,674          10,780          10,674 
    Support of other nations:                                                                                   
        International headquarters and agencies.          7,395           7,395           7,395           7,395 
                                                 ---------------------------------------------------------------
          Total, budget activity 4..............      3,787,133       3,784,733       3,784,189       3,768,303 
                                                 ===============================================================
Classified programs undistributed...............  ..............          1,000           5,000           1,150 
Civilian pay....................................  ..............  ..............        -12,800   ..............
NSIPS...........................................  ..............          9,000   ..............          9,000 
General reduction, national defense stockpile                                                                   
 fund...........................................        -50,000         -50,000         -50,000         -50,000 
Real property maintenance.......................  ..............        150,000   ..............        155,000 
Foreign currency fluctuation....................  ..............         31,900   ..............          5,000 
Barracks renovation initiative..................  ..............  ..............        100,000   ..............
Administrative travel savings...................  ..............  ..............        -17,500         -28,500 
Printing efficiencies...........................  ..............         -4,000          -4,000          -4,000 
Inspector General consolidation.................  ..............        -20,000   ..............        -20,000 
Reduced audits..................................  ..............        -10,000         -10,000         -10,000 
Transportation improvements.....................  ..............         -7,200          -7,200          -7,200 
Bulk fuel requirements reduction................  ..............  ..............       -200,000        -100,000 
Nexcom 2nd destination transportation...........  ..............         -7,500   ..............         -7,500 
Civilian understrength..........................  ..............         -5,000         -33,000         -17,000 
Provide comfort/enhanced southern watch.........  ..............         75,300   ..............         75,300 
Tomahawk missile recertification................  ..............         -9,000   ..............         -9,000 
Supply management reforms.......................  ..............        -37,000   ..............        -37,000 
                                                 ===============================================================
      Total, operation and maintenance, Navy....     21,175,710      20,846,710      21,195,301      21,279,425 
          Transfer..............................        (50,000)        (50,000)        (50,000)        (50,000)
                                                 ---------------------------------------------------------------
      Total funding available...................    (21,225,710)    (20,896,710)    (21,245,301)    (21,329,425)
----------------------------------------------------------------------------------------------------------------
                    adjustments to budget activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    P-3 Force Structure.......................................    8,000 
    Pacific Missile Range Facility............................   14,295 
    Aircraft Depot Maintenance................................   25,000 
    Ship Depot Maintenance Availabilities.....................  150,000 
    Other Weapon Systems Maintenance..........................    5,000 
    DBOF Support.............................................. (100,000)
  Budget Activity 3: Training and Recruiting:
    Recruiting and Advertising................................    5,000 
  Budget Activity 4: Administration and Servicewide 
    Activities:
    Personnel Management Efficiencies.........................   (2,000)
    Challenge Athena..........................................   27,000 
    Acquisition Reform........................................  (17,000)
    Reverse Osmosis Desalinators..............................    3,500 
    AN-UYQ-70.................................................   10,000 
    Pentagon Renovation Transfer..............................  (33,330)
    Security Programs (Arms Control)..........................   (7,000)
  Other Adjustments:
    Foreign Currency..........................................    5,000 
    Administrative Travel Savings/Executive Transport.........  (28,500)
    Inspector General Consolidation...........................  (20,000)
    Bulk Fuel Reduction....................................... (100,000)
    NexCom Second Destination Transportation..................   (7,500)
    Civilian Underexecution...................................  (17,000)
    Provide Comfort/Enhanced Southern Watch...................   75,300 
    Tomahawk Missile Recertification..........................   (9,000)
    Supply Management Reforms.................................  (37,000)
                      reverse osmosis desalinators
      The conferees agree to provide $3,500,000 under this 
heading for the purchase and repair and maintenance of reverse 
osmosis desalinators. Of this amount, $500,000 is directed to 
the repair and maintenance of existing Navy desalinators, 
$1,000,000 is directed for the procurement of new desalinators 
for the Navy, and the remaining $2,000,000 is directed to Navy 
procurement of desalinators in support of the Air Force.
                asia-pacific center for security studies
      In their respective bills, the House and Senate have each 
approved the budget request for the Asia-Pacific Center for 
Security Studies. The conferees note that the Center was 
dedicated by the Secretary of Defense in August of this year 
and it continues to receive strong support from the civilian 
and military leadership of the Defense Department and other 
nations. The conferees want to express their support for fully 
funding the requirements of the Center in 1996 and the future.
                               css hunley
      The House recedes from its report language regarding the 
CSS Hunley.
                Operation and Maintenance, Marine Corps
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
            OPERATION AND MAINTENANCE, MARINE CORPS                                                             
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    EXPEDITIONARY FORCES:                                                                                       
        OPERATIONAL FORCES..................................      334,133      344,133      334,133      344,133
        FIELD LOGISTICS.....................................      158,299      158,299      158,299      158,299
        DEPOT MAINTENANCE...................................      148,574      173,574      148,574      158,574
        BASE SUPPORT........................................      903,013      953,013      922,043      945,013
    USMC PREPOSITIONING:                                                                                        
        MARITIME PREPOSITIONING.............................       77,416       77,416       96,416       77,416
        NORWAY PREPOSITIONING...............................        8,019        8,019        4,019        5,919
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........................    1,629,454    1,714,454    1,663,484    1,689,354
                                                             ===================================================
  BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                   
    ACCESSION TRAINING:                                                                                         
        RECRUIT TRAINING....................................        7,343        7,343        7,343        7,343
        OFFICER ACQUISITION.................................          268          268          268          268
        BASE SUPPORT........................................       66,554       66,554       67,219       66,554
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILLS TRAINING.........................       25,057       35,057       35,057       35,057
        FLIGHT TRAINING.....................................          165          165          165          165
        PROFESSIONAL DEVELOPMENT EDUCATION..................        5,792        5,792        5,792        5,792
        TRAINING SUPPORT....................................       74,964       74,964       74,964       74,964
        BASE SUPPORT........................................       69,791       69,791       75,481       69,791
    RECRUITING AND OTHER TRAINING EDUCATION:                                                                    
        RECRUITING AND ADVERTISING..........................       61,037       66,037       65,037       65,037
        OFF-DUTY AND VOLUNTARY EDUCATION....................       11,055       11,055       11,055       11,055
        JUNIOR ROTC.........................................        7,588        7,588        7,588        7,588
        BASE SUPPORT........................................       13,496       13,496       13,626       13,496
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..........................      343,110      358,110      363,595      357,110
                                                             ===================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                            
    SERVICEWIDE SUPPORT:                                                                                        
        LOGISTICS SUPPORT...................................       95,596       95,596       95,596       95,596
        SPECIAL SUPPORT.....................................      131,023      139,823      131,023      131,023
        SERVICEWIDE TRANSPORTATION..........................       31,931       31,931       31,931       31,931
        ADMINISTRATION......................................       28,523       28,523       29,523       28,523
        BASE SUPPORT........................................       10,085       10,085       10,185       10,085
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........................      297,158      305,958      298,258      297,158
                                                             ===================================================
CLASSIFIED PROGRAMS.........................................  ...........  ...........        1,000          500
REAL PROPERTY MAINTENANCE...................................  ...........      100,000  ...........       60,000
FOREIGN CURRENCY FLUCTUATION................................  ...........        9,400  ...........        1,000
INCLEMENT WEATHER GEAR......................................  ...........       24,000  ...........  ...........
TRANSPORTATION IMPROVEMENTS.................................  ...........       -3,100       -3,100       -3,100
BARRACKS RENOVATION INITIATIVES.............................  ...........  ...........       22,000  ...........
ADMINISTRATIVE TRAVEL SAVINGS...............................  ...........  ...........       -3,500       -9,500
                                                             ---------------------------------------------------
      TOTAL, O&M, MARINE CORPS..............................    2,269,722    2,508,822    2,341,737    2,392,522
----------------------------------------------------------------------------------------------------------------
                    adjustments to budget activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Operating Tempo...........................................   10,000 
    Depot maintenance.........................................   10,000 
    Initial Issue Equipment...................................   16,000 
    Personnel Support Equipment...............................   25,000 
    Training Range Environmental Assessment...................    1,000 
    Norway Prepositioning.....................................   (2,100)
  Budget Activity 3: Training and Recruiting:
    Recruiting and Advertising................................    4,000 
  Other Adjustments:
    Foreign Currency..........................................    1,000 
    Administrative Travel Savings/Executive Transport.........   (9,500)
                  Operation and Maintenance, Air Force
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
       OPERATION AND MAINTENANCE, AIR FORCE                                                                     
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    AIR OPERATIONS:                                                                                             
        PRIMARY COMBAT FORCES...................      2,684,913       2,829,413       2,664,913       2,713,913 
        PRIMARY COMBAT WEAPONS..................        409,701         389,701         389,701         389,701 
        COMBAT ENHANCEMENT FORCES...............        257,139         257,139         257,139         257,139 
        AIR OPERATIONS TRAINING.................        647,570         652,470         650,570         655,470 
        COMBAT COMMUNICATIONS...................        854,442         854,442         846,542         846,542 
        BASE SUPPORT............................      2,407,212       2,456,212       2,431,282       2,407,212 
    COMBAT RELATED OPERATIONS:                                                                                  
        GLOBAL C\3\I AND EARLY WARNING..........        826,526         834,726         826,526         830,526 
        NAVIGATION/WEATHER SUPPORT..............        128,374         128,374         128,374         128,374 
        OTHER COMBAT OPS SUPPORT PROGRAMS.......        210,481         210,481         210,481         210,481 
        JCS EXERCISES...........................         41,793          41,793          41,793          41,793 
        MANAGEMENT/OPERATIONAL HEADQUARTERS.....        111,914         111,914         111,914         111,914 
        TACTICAL INTEL AND OTHER SPECIAL                                                                        
         ACTIVITIES.............................        190,613         190,613         190,613         190,613 
    SPACE OPERATIONS:                                                                                           
        LAUNCH FACILITIES.......................        254,590         254,590         254,590         254,590 
        LAUNCH VEHICLES.........................        117,482         117,482         117,482         117,482 
        SPACE CONTROL SYSTEMS...................        341,862         341,862         341,862         341,862 
        SATELLITE SYSTEMS.......................         49,132          49,132          43,832          49,132 
        OTHER SPACE OPERATIONS..................         79,989          79,989          79,989          79,989 
        BASE SUPPORT............................        402,589         402,589         406,589         402,589 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............     10,016,322      10,202,922       9,994,192      10,029,322 
                                                 ===============================================================
  BUDGET ACTIVITY 2: MOBILIZATION:                                                                              
    MOBILITY OPERATIONS:                                                                                        
        AIRLIFT OPERATIONS......................      1,544,785       1,526,785       1,524,785       1,533,785 
        AIRLIFT OPERATIONS C\3\I................         10,961          10,961          10,961          10,961 
        MOBILIZATION PREPAREDNESS...............        160,110         160,110         160,110         160,110 
        PAYMENTS TO TRANSPORTATION BUSINESS AREA        293,027         273,027         273,027         273,027 
        BASE SUPPORT............................        514,490         514,490         519,590         514,490 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 2..............      2,523,373       2,485,373       2,488,473       2,492,373 
                                                 ===============================================================
  BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                   
    ACCESSION TRAINING:                                                                                         
        OFFICER ACQUISITION.....................         49,197          49,197          49,197          49,197 
        RECRUIT TRAINING........................          3,881           3,881           3,881           3,881 
        RESERVE OFFICER TRAINING CORPS (ROTC)...         39,226          39,226          39,226          39,226 
        BASE SUPPORT (ACADEMIES ONLY)...........         91,666          91,666          91,666          91,666 
    BASIC SKILLS AND ADVANCED TRAINING:                                                                         
        SPECIALIZED SKILL TRAINING..............        204,465         214,465         214,465         214,465 
        FLIGHT TRAINING.........................        336,956         276,956         309,556         326,956 
        PROFESSIONAL DEVELOPMENT EDUCATION......         78,688          78,688          78,688          78,688 
        TRAINING SUPPORT........................         65,048          65,048          65,048          65,048 
        BASE SUPPORT (OTHER TRAINING)...........        545,451         545,451         550,851         545,451 
    RECRUITING, AND OTHER TRAINING AND                                                                          
     EDUCATION:                                                                                                 
        RECRUITING AND ADVERTISING..............         44,827          50,827          49,827          49,827 
        EXAMINING...............................          3,122           3,122           3,122           3,122 
        OFF DUTY AND VOLUNTARY EDUCATION........         75,537          86,237          75,537          79,537 
        CIVILIAN EDUCATION AND TRAINING.........         77,304          77,304          77,304          77,304 
        JUNIOR ROTC.............................         25,392          25,392          25,392          25,392 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..............      1,640,760       1,607,460       1,633,760       1,649,760 
                                                 ===============================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                        
 ACTIVITIES:                                                                                                    
    LOGISTICS OPERATIONS:                                                                                       
        LOGISTICS OPERATIONS....................        790,324         754,324         794,224         754,324 
        TECHNICAL SUPPORT ACTIVITIES............        365,535         365,535         365,535         365,535 
        SERVICEWIDE TRANSPORTATION..............        234,836         234,836         234,836         234,836 
        BASE SUPPORT............................        889,348         889,348         913,648         889,448 
    SERVICEWIDE ACTIVITIES:                                                                                     
        ADMINISTRATION..........................        118,319         102,819         118,319         112,819 
        SERVICEWIDE COMMUNICATIONS..............        318,240         318,240         318,240         318,240 
        PERSONNEL PROGRAMS......................         84,766          79,066          84,766          81,766 
        RESCUE AND RECOVERY SERVICES............         40,426          44,826          40,426          44,826 
        SUBSISTENCE-IN-KIND.....................         48,429          48,429          48,429          48,429 
        ARMS CONTROL............................         34,645          34,645          34,645          34,645 
        OTHER SERVICEWIDE ACTIVITIES............        396,155         396,155         396,155         396,155 
        OTHER PERSONNEL SUPPORT.................         32,080          32,080          32,080          32,080 
        CIVIL AIR PATROL CORPORATION............         14,704          15,804          16,704          16,704 
        BASE SUPPORT............................        248,095         270,295         254,595         248,095 
        PENTAGON RENOVATION TRANSFER............  ..............  ..............        -32,730         -32,730 
    SECURITY PROGRAMS:                                                                                          
        SECURITY PROGRAMS.......................        447,218         447,218         439,218         439,218 
    SUPPORT TO OTHER NATIONS:                                                                                   
        INTERNATIONAL SUPPORT...................         13,022          13,022          13,022          13,022 
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..............      4,076,142       4,046,642       4,072,112       3,997,412 
CLASSIFIED PROGRAMS UNDISTRIBUTED...............  ..............          2,000          12,700          15,400 
SR-71...........................................  ..............  ..............         30,000          30,000 
CIVILIAN PERSONNEL UNDERSTRENGTH................  ..............        -80,000         -30,000         -72,000 
INFORMATION TECHNOLOGY..........................  ..............            100   ..............  ..............
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE                                                                   
 FUND...........................................        -50,000         -50,000         -50,000         -50,000 
REAL PROPERTY MAINTENANCE.......................  ..............        320,000   ..............        151,000 
FOREIGN CURRENCY FLUCTUATION....................  ..............         20,600   ..............          7,200 
EDCARS/DSREDS...................................  ..............          2,000   ..............          2,000 
INSPECTOR GENERAL CONSOLIDATION.................  ..............        -11,000   ..............        -11,000 
REDUCED AUDITS..................................  ..............        -13,000         -13,000         -13,000 
PRINTING EFFICIENCIES...........................  ..............         -3,000          -3,000          -3,000 
ADMINISTRATIVE TRAVEL SAVINGS...................  ..............  ..............        -17,500         -28,500 
BARRACKS RENOVATION INITIATIVES.................  ..............  ..............        100,000   ..............
TRANSPORTATION IMPROVEMENTS.....................  ..............        -15,300         -15,300         -15,300 
PROVIDE COMFORT/ENHANCED SOUTHERN WATCH.........  ..............        393,200   ..............        393,200 
SUPPLY MANAGEMENT REFORMS.......................  ..............        -13,600   ..............        -13,600 
OPERATIONAL SUPPORT AIRLIFT.....................  ..............        -20,604   ..............  ..............
                                                 ---------------------------------------------------------------
      TOTAL, O&M, AIR FORCE.....................     18,206,597      18,873,793      18,202,437      18,561,267 
TRANSFER........................................        (50,000)        (50,000)        (50,000)        (50,000)
                                                 ---------------------------------------------------------------
      TOTAL FUNDING AVAILABLE...................    (18,256,597)    (18,923,793)    (18,252,437)    (18,611,267)
----------------------------------------------------------------------------------------------------------------
                    adjustments to budget activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Air Guard Transfer........................................   (6,200)
    Excess Funded Carryover...................................  (27,000)
    Mission Readiness Training................................   25,200 
    Precision Weapons.........................................    1,000 
    Spares Funding............................................   36,000 
    Caribbean Basin Radars....................................    3,000 
    Simulation Enhancements...................................    4,900 
    Combat Communications Transfer to R&D.....................   (7,900)
    Rivet Joint...............................................    4,000 
  Budget Activity 2: Mobilization:
    KC-135s...................................................    2,000 
    Excess Funded Carryover...................................  (13,000)
  Budget Activity 3: Training and Recruiting:
    Undergraduate Pilot Training..............................  (10,000)
    Recruiting and Advertising................................    5,000 
    Tuition Assistance........................................    4,000 
  Budget Activity 4: Administration and Servicewide 
    Activities:
    Acquisition Reform........................................  (40,000)
    B-1 Maintenance...........................................    4,000 
    CAMS/REMIS................................................      100 
    STRATCOM..................................................    2,500 
    Administrative Efficiencies...............................   (8,000)
    Personnel Management Efficiencies.........................   (3,000)
    Rescue and Recovery Programs..............................    4,400 
    Civil Air Patrol..........................................    2,000 
    Pentagon Renovation Transfer..............................  (32,730)
    Security Programs (Arms Control)..........................   (8,000)
  Other Adjustments:
    SR-71.....................................................   30,000 
    Civilian Underexecution...................................  (72,000)
    Foreign Currency..........................................    7,200 
    Inspector General Consolidation...........................  (11,000)
    Administrative Travel Savings/Executive Transport.........  (28,500)
    Provide Comfort/Enhanced Southern Watch...................  393,200 
    Supply Management Reforms.................................  (13,600)
                         Counterdrug Operations
      The conferees direct that no more than $8,000,000 of 
available funds are to be used to relocate USSOUTHCOM radars. 
These funds are intended to augment counterdrug O&M funding and 
are not to be counted against the fiscal year 1996 appropriated 
level for counterdrug O&M activities.
                    alternative power demonstration
      The conferees agree that the report on the demonstration 
of alternative power sources for Burnt Mountain should be 
provided to the Committees on Appropriations by September 30, 
1997.
                Operation and Maintenance, Defense-Wide
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
            OPERATION AND MAINTENANCE, DEFENSE-WIDE                                                             
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    JOINT CHIEFS OF STAFF...................................      475,977      537,977      480,977      480,977
    SPECIAL OPERATIONS COMMAND..............................    1,018,476    1,018,476    1,018,476    1,019,476
    PROVIDE COMFORT/ENHANCED SOUTHERN WATCH.................  ...........  ...........  ...........       10,100
                                                             ---------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..............................    1,494,453    1,566,553    1,499,453    1,510,553
                                                             ===================================================
  BUDGET ACTIVITY 2: MOBILIZATION:                                                                              
    DEFENSE LOGISTICS AGENCY................................       26,000       26,000       26,000       26,000
    WASHINGTON HEADQUARTERS SERVICES........................       45,438  ...........  ...........  ...........
                                                             ---------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..............................       71,438       26,000       26,000       26,000
                                                             ===================================================
  BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                   
    DEFENSE ACQUISITION UNIVERSITY..........................      112,991       93,991      112,991      101,491
    DEFENSE BUSINESS MANAGEMENT UNIVERSITY..................       19,669        3,969       19,669       19,669
                                                             ---------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3..............................      132,660       97,960      132,660      121,160
                                                             ===================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                            
    AMERICAN FORCES INFORMATION SERVICE.....................       90,892       90,892       90,892       90,892
    CORPORATE INFORMATION MANAGEMENT........................      127,967      127,967      127,967      127,967
    CLASSIFIED AND INTELLIGENCE.............................    3,350,037    3,340,369    3,334,237    3,334,469
    DEFENSE CIVILIAN PERSONNEL MANAGEMENT SERVICE...........       45,631       40,831       45,631       43,231
    DEFENSE CONTRACT AUDIT AGENCY...........................      342,926      332,126      342,926      332,126
    DEFENSE INVESTIGATIVE SERVICE...........................      201,582      197,682      201,582      199,582
    DEFENSE LOGISTICS AGENCY................................    1,055,996    1,036,696    1,072,996    1,069,696
    PROCUREMENT TECHNICAL ASSISTANCE PROGRAM................  ...........  ...........       12,000  ...........
    DEFENSE LEGAL SERVICES AGENCY...........................        6,540        6,540        6,540        6,540
    DEFENSE MAPPING AGENCY..................................      734,438      695,338      734,438      714,538
    DEFENSE NUCLEAR AGENCY..................................       96,105       96,105       96,105       96,105
    DEFENSE POW/MIA OFFICE..................................       13,486       13,486       13,486       13,486
    FEDERAL ENERGY MANAGEMENT PROGRAM.......................      234,682      120,000       50,000       35,000
    DEPARTMENT OF DEFENSE DEPENDENTS EDUCATION..............    1,292,684    1,168,825    1,293,184    1,306,729
    DEFENSE SUPPORT ACTIVITIES..............................       82,562       82,562       82,562       82,562
    DEFENSE TECHNOLOGY SECURITY ADMINISTRATION..............       10,858       10,858       10,858       10,858
    JOINT CHIEFS OF STAFF...................................       97,873       97,873       97,873       97,873
    OFFICE OF ECONOMIC ADJUSTMENT...........................       59,078       60,578       59,078       60,578
    OFFICE OF THE SECRETARY OF DEFENSE......................      349,291      267,761      324,622      323,922
    ON SITE INSPECTION AGENCY...............................       97,987       97,987       85,987       85,987
    WASHINGTON HEADQUARTERS SERVICES........................      308,421      298,821      308,421      298,821
    PENTAGON RENOVATION TRANSFER............................  ...........  ...........      -50,830      108,020
                                                             ---------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..............................    8,599,036    8,183,297    8,340,555    8,453,982
                                                             ===================================================
  BUDGET ACTIVITY 6: CAPITAL LEASE:                                                                             
    DEFENSE BUSINESS MANAGEMENT UNIVERSITY..................       69,195  ...........  ...........  ...........
    CIVILIAN PAY............................................  ...........  ...........      -74,400  ...........
    CIVILIAN PERSONNEL UNDERSTRENGTH........................  ...........      -60,000      -57,700      -45,000
    INFORMATION TECHNOLOGY..................................  ...........      112,000  ...........       12,000
    JOINT MARKET RESEARCH PROGRAM...........................  ...........        2,000  ...........        2,000
    FOREIGN CURRENCY FLUCTUATION............................  ...........       24,200  ...........        6,400
    IMPACT AID..............................................  ...........       35,000  ...........       35,000
    TRANSPORTATION IMPROVEMENTS.............................  ...........      -18,200  ...........  ...........
    TRAVEL RE-ENGINEERING...................................  ...........      -10,000      -22,500      -33,500
    GENERAL REDUCTION.......................................  ...........  ...........      -40,000  ...........
    TRAVEL REDUCTION........................................  ...........      -50,000  ...........  ...........
    FORT ORD BASE REHABILITATION SUPPORT....................  ...........  ...........  ...........       15,000
    COAST GUARD TRANSFER....................................  ...........  ...........  ...........      300,000
                                                             ---------------------------------------------------
      TOTAL, O&M, DEFENSE-WIDE..............................   10,366,782    9,908,810    9,804,068   10,388,595
----------------------------------------------------------------------------------------------------------------
                    ADJUSTMENTS TO BUDGET ACTIVITIES
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Northern Edge.............................................    5,000 
    Seal Delivery Vehicle Team One............................    1,000 
    Provide Comfort/Enhanced Southern Watch...................   10,100 
  Budget Activity 3: Training and Recruiting:
    DAU/Defense Systems Management College....................  (11,500)
  Budget Activity 4: Administration and Servicewide 
    Activities:
    Defense Civilian Personnel Management Service.............   (2,400)
    Defense Contract Audit Agency.............................  (10,800)
    Defense Investigative Service.............................   (2,000)
    DLA Acquisition Reform....................................  (10,700)
    DLA Security Locks........................................   15,000 
    DLA Homeless Initiative...................................   (2,600)
    DLA Procurement Technical Assistance......................   12,000 
    DMA, Minor Equipment......................................  (13,800)
    DMA, Internet Access......................................     (600)
    DMA, Productivity Improvements............................   (4,500)
    DMA, Personnel Regionalization............................   (1,000)
    Federal Energy Management Program......................... (199,682)
    DoDDS Administrative Overhead.............................  (10,000)
    New Parent Support Program................................   25,600 
    Relocation Assistance Program.............................   (2,055)
    DoDDS Mathematics Teachers Leadership Project.............      500 
    Office of Economic Adjustment.............................    1,500 
    OSD, Mobility Enhancements................................   41,000 
    OSD, DFAS Efficiencies....................................  (20,000)
    OSD, Management Efficiencies..............................  (32,669)
    OSD, Acquisition Reform...................................     (400)
    OSD, Staffing Reductions..................................   (6,400)
    OSD, Acquisition Program Growth...........................   (4,200)
    OSD, Consulting Services Growth...........................  (20,700)
    OSD, Joint Recruiting and Advertising Program.............   10,000 
    MARC cards................................................    8,000 
    OSIA (Arms Control).......................................  (12,000)
    WHS, Inventory Growth.....................................   (9,600)
    Pentagon Renovation Transfer..............................  108,020 
  Other Adjustments:
    Civilian Underexecution...................................  (45,000)
    Information Technology....................................   12,000 
    Joint Market Research Program.............................    2,000 
    Foreign Currency..........................................    6,400 
    Impact Aid................................................   35,000 
    Travel Efficiencies/Executive Transport...................  (33,500)
    Fort Ord Base Rehabilitation Support......................   15,000 
    Coast Guard Defense Missions..............................  300,000 
                joint analysis model improvement program
      The conferees agree that, of the funds provided, 
$11,200,000 shall be made available for the Joint Analysis 
Model Improvement Program.
                          pentagon renovation
      The conferees direct that the Pentagon renovation funding 
be consolidated in the ``Operation and Maintenance, Defense-
Wide'' account. The conferees have provided a total of 
$108,020,000 for the Pentagon renovation.
                      troops to cops and teachers
      The Senate included language providing $52,000,000 to 
continue the Troops to Cops and Troops to Teachers programs. 
The conferees have deleted this language. The conferees expect 
the Defense Department to consider using existing resources 
within this appropriation, if available, to continue these 
programs.
    transition assistance program and relocation assistance program
      The conferees agree to provide $49,300,000 for the 
Transition Assistance Program and $18,504,000 for the 
Relocation Assistance Program for fiscal year 1996. However, 
the conferees are concerned that these programs have become 
permanent entities, even though they were initiated to provide 
service members and their families with separation and 
relocation assistance resulting from the drawdown. At the end 
of fiscal year 1996, the Department of Defense will have 
largely completed its downsizing effort. Accordingly,the 
conferees direct the Department to report to the Defense Committees no 
later than March 1, 1996, on phasing out these programs, and what, if 
any residual level of continued resourcing is required.
                Operation and Maintenance, Army Reserve
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
            OPERATION AND MAINTENANCE, ARMY RESERVE                                                             
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    MISSION OPERATIONS:                                                                                         
        BASE SUPPORT........................................      284,036      284,036      284,036      284,036
        DEPOT MAINTENANCE...................................       57,377       57,377       57,377       57,377
        RECRUITING AND RETENTION............................       43,963       43,963       43,963       43,963
        TRAINING OPERATIONS.................................      573,414      606,414      573,414      606,414
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........................      958,790      991,790      958,790      991,790
                                                             ===================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                            
    ADMINISTRATION AND SERVICEWIDE ACTIVITIES:                                                                  
        INFORMATION MANAGEMENT..............................       17,492       17,492       17,492       17,492
        PUBLIC AFFAIRS......................................          423          423          423          423
        PERSONNEL ADMINISTRATION............................       61,941       61,941       61,941       61,941
        STAFF MANAGEMENT....................................       29,945       29,945       29,945       29,945
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........................      109,801      109,801      109,801      109,801
                                                             ===================================================
REAL PROPERTY MAINTENANCE...................................  ...........       17,000  ...........       17,000
MILITARY/CIVILIAN TECHNICIAN RESTORATION....................  ...........        5,000  ...........        5,000
RESERVE COMPONENT AUTOMATION SYSTEM.........................  ...........       -4,400  ...........       -4,400
TRANSITION BENEFITS.........................................  ...........  ...........         -279  ...........
                                                             ---------------------------------------------------
      TOTAL, O&M, ARMY RESERVE..............................    1,068,591    1,119,191    1,068,312    1,119,191
----------------------------------------------------------------------------------------------------------------
                    adjustments to budget activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Training operations.......................................    33,000
  Other adjustments:
    Real property maintenance.................................    17,000
    Military/civilian technician restoration..................     5,000
    Reserve component automation system.......................    -4,400
                    --------------------------------------------------------------
                    ____________________________________________________
      Total adjustments.......................................   +50,600
                Operation and Maintenance, Navy Reserve
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
            OPERATION AND MAINTENANCE, NAVY RESERVE                                                             
  Budget activity 1: Operating forces:                                                                          
    Reserve air operations:                                                                                     
        Mission and other flight operations.................      291,673      291,673      291,673      291,673
        P-3 squadron operations.............................  ...........  ...........  ...........        6,000
        Intermediate maintenance............................       17,813       17,813       17,813       17,813
        Air operation and safety support....................        1,915        1,915        1,915        1,915
        Aircraft depot maintenance..........................       49,338       59,338       49,338       54,338
        Aircraft depot OPS support..........................          356          356          356          356
        Base support........................................      130,854      130,854      130,854      130,854
    Reserve Ship operations:                                                                                    
        Mission and other ship operations...................       60,895       60,895       60,895       60,895
        Ship operational support and training...............          658          658          658          658
        Intermediate maintenance............................       23,990       23,990       23,990       23,990
        Ship depot maintenance..............................       70,930       70,930       70,930       70,930
        Ship depot operations support.......................        1,467        1,467        1,467        1,467
    Reserve combat operations support:                                                                          
        Combat communications...............................          817          817          817          817
        Combat support forces...............................       25,207       25,207       25,207       25,207
        Base support........................................       52,410       52,410       52,410       52,410
    Reserve weapons support:                                                                                    
        Weapons maintenance.................................        5,641        5,641        5,641        5,641
                                                             ---------------------------------------------------
          Total, Budget Activity 1..........................      733,964      743,964      733,964      744,964
                                                             ===================================================
  Budget Activity 4: Admin & servicewide activities:                                                            
    Administration and servicewide activities:                                                                  
        Administration......................................        8,029        8,029        8,029        8,029
        Civilian manpower and personnel management..........        3,222        3,222        3,222        3,222
        Military manpower and personnel management..........       31,209       31,209       31,209       31,209
        Servicewide communications..........................       21,247       21,247       21,247       21,247
        Base support........................................       25,723       25,723       25,723       25,723
        Combat/Weapons systems..............................        2,648        2,648        2,648        2,648
                                                             ---------------------------------------------------
          Total, Budget Activity 4..........................       92,078       92,078       92,078       92,078
                                                             ===================================================
Real property maintenance...................................  ...........       12,000  ...........       20,000
NSIPS.......................................................  ...........        9,000  ...........        2,500
Operational support airlift.................................  ...........      -15,477  ...........  ...........
                                                             ---------------------------------------------------
      Total, O&M, Navy Reserve..............................      826,042      841,565      826,042      859,542
----------------------------------------------------------------------------------------------------------------
                    Adjustments to Budget Activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    P-3 Squadrons.............................................     6,000
    Aircraft Depot Maintenance................................     5,000
  Other Adjustments:
    Real Property Maintenance.................................    20,000
    NSIPS.....................................................     2,500
                    --------------------------------------------------------------
                    ____________________________________________________
      Total Adjustments.......................................   +33,500
            Operation and Maintenance, Marine Corps Reserve
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
        OPERATION AND MAINTENANCE, MARINE CORPS RESERVE                                                         
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    MISSION FORCES:                                                                                             
        TRAINING............................................       13,617       14,517       13,617       14,517
        OPERATING FORCES....................................       21,237       27,637       21,237       25,637
        BASE SUPPORT........................................       18,059       18,059       18,059       18,059
        DEPOT MAINTENANCE...................................        2,322        3,722        2,322        3,322
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........................       55,235       63,935       55,235       61,535
                                                             ===================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                            
    ADMINISTRATION AND SERVICEWIDE ACTIVITIES:                                                                  
        RECRUITING AND ADVERTISING..........................        7,609        7,609        7,609        7,609
        SPECIAL SUPPORT.....................................        9,064        9,064        9,064        9,064
        SERVICEWIDE TRANSPORTATION..........................        5,381        5,381        5,381        5,381
        ADMINISTRATION......................................        6,274        6,274        6,274        6,274
        BASE SUPPORT........................................        6,720       11,020        6,720        8,920
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........................       35,048       39,348       35,048       37,248
                                                             ===================================================
REAL PROPERTY MAINTENANCE...................................  ...........        1,500  ...........        1,500
OPERATIONAL SUPPORT AIRLIFT.................................  ...........       -2,704  ...........  ...........
                                                             ---------------------------------------------------
      TOTAL, O&M, MARINE CORPS RESERVE......................       90,283      102,079       90,283      100,283
----------------------------------------------------------------------------------------------------------------
                    Adjustments to Budget Activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Training..................................................       900
    Operating Forces..........................................     4,400
    Depot Maintenance.........................................     1,000
  Budget Activity 4: Admin & Servicewide Activities:
    Base Support..............................................     2,200
  Other Adjustments:
    Real Property Maintenance.................................     1,500
                    --------------------------------------------------------------
                    ____________________________________________________
      Total Adjustments.......................................   +10,000
              Operation and Maintenance, Air Force Reserve
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
         OPERATION AND MAINTENANCE, AIR FORCE RESERVE                                                           
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    AIR OPERATIONS:                                                                                             
        AIRCRAFT OPERATIONS.................................    1,103,593    1,115,433    1,103,593    1,115,433
        MISSION SUPPORT OPERATIONS..........................       35,073       35,073       35,073       35,073
        BASE SUPPORT........................................      282,248      282,248      282,248      282,248
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........................    1,420,914    1,432,754    1,420,914    1,432,754
                                                             ===================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                            
    ADMINISTRATION AND SERVICEWIDE ACTIVITIES:                                                                  
        ADMINISTRATION......................................       33,107       33,107       33,107       33,107
        MILITARY MANPOWER AND PERSONNEL MANAGEMENT..........       17,746       17,746       17,746       17,746
        RECRUITING AND ADVERTISING..........................        7,743        7,743        7,743        7,743
        OTHER PERSONNEL SUPPORT.............................        6,063        6,063        6,063        6,063
        AUDIOVISUAL.........................................          374          374          374          374
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........................       65,033       65,033       65,033       65,033
                                                             ===================================================
REAL PROPERTY MAINTENANCE...................................  ...........       13,500  ...........       13,500
MILITARY/CIVILIAN TECHNICIAN RESTORATION....................  ...........        8,000  ...........        8,000
                                                             ---------------------------------------------------
      TOTAL, O&M, AIR FORCE RESERVE.........................    1,485,947    1,519,287    1,485,947    1,519,287
----------------------------------------------------------------------------------------------------------------
                    adjustments to Budget Activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Aircraft Operations.......................................    11,840
  Other Adjustments:
    Real Property Maintenance.................................    13,500
    Military/Civilian Technician Restoration..................     8,000
                    --------------------------------------------------------------
                    ____________________________________________________
      Total Adjustments.......................................   +33,340
             Operation and Maintenance, Army National Guard
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
        OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD                                                          
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    MISSION OPERATIONS:                                                                                         
        TRAINING OPERATIONS.................................    1,720,134    1,760,134    1,720,134    1,760,134
        RECRUITING AND RETENTION............................       20,110       20,110       20,110       20,110
        MEDICAL SUPPORT.....................................       19,109       19,109       19,109       19,109
        DEPOT MAINTENANCE...................................      100,687      100,687      100,687      100,687
        BASE SUPPORT........................................      250,378      250,378      252,978      252,978
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........................    2,110,418    2,150,418    2,113,018    2,153,018
                                                             ===================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                            
    ADMINISTRATION AND SERVICEWIDE ACTIVITIES:                                                                  
        INFORMATION MANAGEMENT..............................       59,496       29,396       59,496       44,596
        PUBLIC AFFAIRS......................................        1,461        1,461        1,461        1,461
        PERSONNEL ADMINISTRATION............................       89,665       89,665       89,665       89,665
        STAFF MANAGEMENT....................................       43,068       43,068       43,068       43,068
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........................      193,690      163,590      193,690      178,790
                                                             ===================================================
REAL PROPERTY MAINTENANCE...................................  ...........       21,000      100,000      100,000
MILITARY/CIVILIAN TECHNICIAN RESTORATION....................  ...........        9,000  ...........        9,000
TRANSITION BENEFITS.........................................  ...........  ...........      -45,000  ...........
OPERATIONAL SUPPORT AIRLIFT.................................  ...........       -9,521  ...........  ...........
                                                             ---------------------------------------------------
      TOTAL, O&M, ARMY NATIONAL GUARD.......................    2,304,108    2,334,487    2,361,708    2,440,808
----------------------------------------------------------------------------------------------------------------
                    adjustments to budget activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Training Operations.......................................    40,000
    Base Support..............................................     2,600
  Budget Activity 4: Admin & Servicewide Activities:
    Information Management....................................   -14,900
  Other Adjustments:
    Real Property Maintenance.................................   100,000
    Military/Civilian Technician Restoration..................     9,000
                    --------------------------------------------------------------
                    ____________________________________________________
      Total Adjustments.......................................  +136,700
             Operation and Maintenance, Air National Guard
      The conference agreement on items addressed by either the 
House or the Senate is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
         OPERATION AND MAINTENANCE, AIR NATIONAL GUARD                                                          
  BUDGET ACTIVITY 1: OPERATING FORCES:                                                                          
    AIR OPERATIONS:                                                                                             
        AIRCRAFT OPERATIONS.................................    1,977,786    1,979,286    2,005,186    2,006,686
        MISSION SUPPORT OPERATIONS..........................      346,687      346,687      246,687      346,687
        BASE SUPPORT........................................      361,224      361,224      361,224      361,224
        DEPOT MAINTENANCE...................................       18,410       19,910       18,410       19,910
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........................    2,704,107    2,707,107    2,731,507    2,734,507
                                                             ===================================================
  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                            
    SERVICEWIDE ACTIVITIES:                                                                                     
        ADMINISTRATION......................................        3,127        3,127        3,127        3,127
        RECRUITING AND ADVERTISING..........................        4,987        4,987        4,987        4,987
                                                             ---------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........................        8,114        8,114        8,114        8,114
                                                             ===================================================
REAL PROPERTY MAINTENANCE...................................  ...........       15,000  ...........       15,000
MILITARY/CIVILIAN TECHNICIAN RESTORATION....................  ...........        7,000  ...........       18,500
TRANSITION BENEFITS.........................................  ...........  ...........      -15,600  ...........
                                                             ---------------------------------------------------
      TOTAL, O&M, AIR NATIONAL GUARD........................    2,712,221    2,737,221    2,724,021    2,776,121
----------------------------------------------------------------------------------------------------------------
                    adjustments to budget activities
      Adjustments to the budget activities are as follows:
  Budget Activity 1: Operating Forces:of dollars]
    Aircraft Operations.......................................    28,900
    Depot Maintenance.........................................     1,500
  Other Adjustments:
    Real Property Maintenance.................................    15,000
    Military/Civilian Technician Restoration..................    18,500
                    --------------------------------------------------------------
                    ____________________________________________________
      Total Adjustments.......................................   +63,900
                   Environmental Restoration, Defense
      The conferees agree to provide $1,422,200,000 for 
Environmental Restoration, Defense.
                       environmental remediation
      The conferees support the ``relative risk'' approach to 
environmental remediation and expect the Department to make 
sure the most hazardous sites receive primary attention. While 
the conferees believe that all bases--those closing and those 
remaining open--must meet environmental standards the 
Department must not let ongoing environmental clean-up efforts 
preclude reuse opportunities at closing military installations. 
In these cases, theDepartment should work aggressively and 
innovatively with State and local officials to lower clean-up costs and 
to be sure environmental issues do not make it harder for affected 
communities to recover from losing a military installation.
                            Summer Olympics
      The conference agreement recommends an appropriation of 
$15,000,000 as proposed by the House and Senate for support of 
the 1996 Games of the XXVI Olympiad.
             Overseas Humanitarian, Disaster, and Civic Aid
      The conferees agree to provide $50,000,000 for these 
functions of which $20,000,000 is specifically earmarked for 
training and activities related to the clearing of landmines 
for humanitarian purposes.
      The conferees also agree to the House recommendation to 
consolidate all funds for humanitarian, disaster, and civil aid 
into a single account.
                  Former Soviet Union Threat Reduction
      The conferees agree to provide $300,000,000 for the 
Former Soviet Union Threat Reduction program, a reduction of 
$71,000,000 from the budget request. Funding provided at the 
subprogram level appears in the following table:
------------------------------------------------------------------------
             Program                Budget   House    Senate  Conference
------------------------------------------------------------------------
Nuclear Arms Reduction...........    167.5    167.5    167.5      167.5 
Defense Enterprise Fund..........       40        0        0          0 
Chemical Weapons Destruction.....      104        0      104         79 
Fissile Material.................       29        6       29         29 
    Other........................     30.5     26.5     24.5       24.5 
                                  --------------------------------------
      Total......................      371      200      325        300 
------------------------------------------------------------------------
      Although no new funds are provided for the Defense 
Enterprise Fund, the conferees agree that up to $2,000,000 of 
previously appropriated funds may be expended to administer the 
continued operation of the Defense Enterprise Fund program 
currently underway. The conferees have included two general 
provisions regarding the Former Soviet Union Threat Reduction 
program involving the limitation on expenditures of funds for 
the Chemical Weapons Destruction program and a prohibition on 
providing funds for housing for current or former Soviet 
military officers.
                         TITLE III--PROCUREMENT
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
                            SUMMARY                                                                             
  ARMY:                                                                                                         
    AIRCRAFT................................................    1,223,067    1,468,067    1,498,623    1,558,805
    MISSILES................................................      676,430      842,830      846,555      865,555
    WEAPONS, TRACKED COMBAT VEHICLES........................    1,298,986    1,616,964    1,396,264    1,652,745
    AMMUNITION..............................................      795,015    1,019,315    1,090,891    1,110,685
    OTHER...................................................    2,256,601    2,570,125    2,760,002    2,769,443
                                                             ---------------------------------------------------
      TOTAL, ARMY...........................................    6,250,099    7,517,301    7,592,335    7,957,233
                                                             ===================================================
  NAVY:                                                                                                         
    AIRCRAFT................................................    3,886,488    4,310,703    4,897,393    4,589,394
    WEAPONS.................................................    1,787,121    1,736,211    1,771,421    1,669,827
    AMMUNITION..............................................  ...........      483,779  ...........      430,053
    SHIPS...................................................    5,051,935    5,577,958    7,062,001    6,643,958
    OTHER...................................................    2,396,080    2,480,670    2,394,260    2,483,581
    MARINE CORPS............................................      474,116      480,852      597,139      458,947
                                                             ---------------------------------------------------
      TOTAL, NAVY...........................................   13,595,740   15,070,173   16,722,214   16,275,760
                                                             ===================================================
  AIR FORCE:                                                                                                    
    AIRCRAFT................................................    6,183,886    7,140,703    7,163,258    7,367,983
    MISSILES................................................    3,647,711    3,223,265    3,550,192    2,943,931
    AMMUNITION..............................................  ...........      321,328  ...........      338,800
    OTHER...................................................    6,804,696    6,508,425    6,540,951    6,284,230
                                                             ---------------------------------------------------
      TOTAL, AIR FORCE......................................   16,636,293   17,193,721   17,254,401   16,934,944
                                                             ===================================================
DEFENSE-WIDE................................................    2,179,917    2,187,085    2,114,824    2,124,379
NATIONAL GUARD AND RESERVE EQUIPMENT........................  ...........      908,125      777,000      777,000
                                                             ---------------------------------------------------
      TOTAL PROCUREMENT.....................................   38,662,049   42,876,405   44,460,774   44,069,316
----------------------------------------------------------------------------------------------------------------
            Joint Forces Command, Control and Communications
      The conferees understand the importance of 
interoperability for joint forces in war and peacetime and have 
provided an additional $103,300,000 to correct critical 
deficiencies. However, through testimony from the Vice 
Chairman, Joint Chiefs of Staff, Service Chiefs and Commanders 
in Chief of the various Unified and Specified Commands, the 
conferees believe that deficiencies in command, control and 
communications still exist. The conferees encourage the 
Secretary of Defense to provide adequate resources for joint 
interoperability initiatives and will entertain reprogramming 
action that provides additional funds for this purpose.
                   ammunition and missile quantities
      The conferees agree the quantities of missiles and 
ammunition noted in the following tables are to be considered a 
floor and direct the Department to buy as many units as 
appropriated funds will allow. In no case shall the Department 
buy less than the quantities noted in the table unless the 
congressional defense committees are informed as to why these 
levels are unachievable.
                       Aircraft Procurement, Army
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate     Quantity   Conference
----------------------------------------------------------------------------------------------------------------
  AIRCRAFT PROCUREMENT, ARMY:                                                                                   
    C-XX (MEDIUM RANGE) AIRCRAFT....................  ..........  ..........      23,000           4      23,000
    UH-60 BLACKHAWK (MYP)...........................     334,880     334,880     302,962          60     334,880
    UH-60 BLACKHAWK (MYP) (AP-CY)...................  ..........      75,000      70,000  ..........      70,000
    GUARDRAIL MODS (TIARA)..........................      48,969      57,969      48,969  ..........      57,969
    AH-64 MODS......................................      53,596      53,596      50,596  ..........      53,596
    LONGBOW.........................................     341,968     341,968     418,168  ..........     418,168
    KIOWA WARRIOR...................................      71,334     211,334     196,334          20     211,334
    SPARES AND REPAIR PARTS.........................      49,177      49,177      33,351  ..........      34,615
    AIRCRAFT SURVIVABILITY EQUIPMENT................      22,304      43,304      54,404  ..........      54,404
----------------------------------------------------------------------------------------------------------------
                          AH-64 Modifications
      The conferees agree to provide the budget request of 
$53,596,000 for AH-64 modifications. Of this amount, $3,000,000 
shall be used to procure additional embedded global 
positioning/inertial navigation systems for Apache helicopters.
                                 uh-60
      The conferees agree with the Senate language regarding 
enhanced protection systems. However, in view of the conference 
agreement to fund a multi-year procurement program for the UH-
60, the conferees believe that the House-recommended report on 
helicopter production strategies is not required.
                      High capacity air ambulance
      The conferees are deeply concerned by the failure of the 
Army to address the need for a High Capacity Air Ambulance 
(HCAA). The Army Surgeon General has stated that this is one of 
his highest priorities. The conferees direct the Army to seek 
an appropriate solution and report the results of the planned 
joint exercise with the Air Force and National Guard by 
February 15, 1996. The report should include the feasibility of 
utilizing C-130s for the HCAA fixed wing requirement, the role 
of the Army and Air National Guard in this mission, and 
requirements for the UH-60L and or UH-60Q helicopters for the 
National Guard in order to accomplish the rotary wing portion 
of this mission. The conferees direct that, of the funds 
appropriated for UH-60Ls, the first 9 aircraft to be procured 
within the Aircraft Procurement, Army appropriation will be 
assigned to the National Guard.
                       Missile Procurement, Army
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
  MISSILE PROCUREMENT, ARMY:                                                                                    
    HELLFIRE SYS SUMMARY.......................      209,460      249,460      246,685          750      246,685
    JAVELIN (AAWS-M) SYSTEM SUMMARY............      171,428      210,428      206,928        1,010      206,928
    TOW 2 SYSTEM SUMMARY.......................        7,378        7,378       27,378        1,000       12,378
    MLRS LAUNCHER SYSTEMS......................       48,158       64,558       64,558           29       98,558
    STINGER MODS...............................       10,095       20,095       10,095  ...........       10,095
----------------------------------------------------------------------------------------------------------------
                             tow 2 missiles
      The conferees agree to provide $12,378,000 for TOW 2 
missiles, an increase of $5,000,000 to modify the capstan block 
of existing TOW 2 missiles.
                multiple launch rocket system launchers
      The conferees agree to provide $98,588,000 for multiple 
launch rocket system launchers, an increase of $50,400,000 only 
for the refurbishment of existing launchers which are to be 
transferred to the National Guard.
        Procurement of Weapons and Tracked Combat Vehicles, Army
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  Procurement of W&TCV, Army:                                                                                   
    Armored Gun System (AGS)........................     141,551     141,551     141,551          26     147,551
    M1 Abrams Tank Series (MYP).....................  ..........  ..........      15,000  ..........       3,000
    Carrier, MOD....................................      48,067      49,667      48,067  ..........      49,667
    BFVS Series (MOD)...............................      74,336      74,336      88,336  ..........      88,336
    Howitzer, MED SP FT 155MM M109A6 (MOD)..........     220,239     302,039     220,239  ..........     302,039
    M1 Abrams Tank (MOD)............................      77,076      46,754      51,754  ..........      51,754
    Abrams Upgrade Program..........................     340,911     340,911     340,911  ..........     450,911
    Abrams Upgrade Program (MCR)....................  ..........     110,000  ..........  ..........  ..........
    Production Base Support (TCV-WTCV)..............      11,619      11,619       4,019  ..........       5,500
    FAASV...........................................  ..........      44,000  ..........  ..........      44,000
    Machine Gun, 5.56MM (SAW).......................  ..........      28,500      12,500  ..........      28,500
    Grenade Launcher, Auto 40MM, MK19-3.............  ..........      20,000      33,900  ..........      33,900
    M16 Rifle.......................................  ..........      13,500       6,500  ..........      13,500
    Medium Machine Gun..............................  ..........       6,500       5,900  ..........       6,500
----------------------------------------------------------------------------------------------------------------
                             Test Equipment
      The conferees agree to provide $15,000,000 for Direct 
Support Electronic System Test Sets (DSESTS). The funding is 
appropriated as follows:
                                                              Conference
Armored Gun System......................................      $6,000,000
Abrams Tank Series......................................       3,000,000
Combat Vehicle Improvement Program (RDT&E,A)............       6,000,000
                    Procurement of Ammunition, Army
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  PROCUREMENT OF AMMUNITION, ARMY:                                                                              
    CTG, 7.62MM, ALL TYPES..........................       2,573       2,573      12,573  ..........       7,573
    CTG, 25MM, ALL TYPES............................      35,139      45,139      70,139  ..........      70,139
    SPECIAL PURPOSE AMMUNITION......................  ..........  ..........  ..........  ..........       6,000
    CTG MORTAR 60MM 1/10 PRAC M766..................  ..........       3,600  ..........  ..........       3,600
    CTG MORTAR 81MM PRAC 1/10 RANGE M880............  ..........       6,600  ..........  ..........       6,600
    CTG MORTAR 120MM SMOKE XM929 W/MO FUZE..........      47,704      69,704      67,704          44      67,704
    CTG ARTY 75MM BLANK M337A1......................       3,749       3,749  ..........         102       1,500
    PROJ ARTY 155MM SMOKE WP M825...................      10,607      10,607       5,132  ..........       5,132
    PROJ ARTY 155MM SADARM XM898....................      24,284      24,284      42,284          77      42,284
    MINE AT/AP M87 (VOLCANO)........................  ..........  ..........      30,000  ..........      30,000
    DEMOLITION MUNITIONS, ALL TYPES.................      26,269      26,269      32,269  ..........      32,269
    PROVISION OF INDUSTRIAL FACILITIES..............      41,906      66,906      41,906  ..........      44,000
    LAYAWAY OF INDUSTRIAL FACILITIES................      13,663      23,663      13,663  ..........      18,663
    ARMAMENT RETOOLING & MANUFACTURING SUPPORT                                                                  
     (ARMS).........................................  ..........  ..........      45,000  ..........      45,000
    CONVENTIONAL AMMO DEMILITARIZATION..............      96,280     106,280     100,280  ..........     100,280
----------------------------------------------------------------------------------------------------------------
                       special purpose ammunition
      The conferees agree to provide $6,000,000 for special 
purpose ammunition. The increase is to be allocated as follows:
                                                              Conference
7.62 MM (XM993).........................................      $2,000,000
5.56 MM (XM995).........................................       2,000,000
.50 caliber (MK211).....................................       2,000,000
                         ctg 120 mm heat m830a1
      The conferees direct the Army to procure 120MM HEAT 
M830A1 tank rounds with the $15,000,000 appropriated in fiscal 
year 1994 for AT-4 modifications.
                        Other Procurement, Army
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  OTHER PROCUREMENT, ARMY:                                                                                      
    HI MOB MULTI-PURP WHLD VEH (HMMWV) (MYP)........      57,690     109,690     129,690         546     129,690
    FAMILY OF HEAVY TACTICAL VEHICLES (MYP).........         596     100,596     125,596  ..........     125,596
    MEDIUM TRUCK EXTENDED SVC PGM (ESP) (PREVS).....  ..........  ..........      30,000  ..........      20,000
    NAVSTAR GLOBAL POSITIONING SYSTEM...............      32,502      50,002      32,502      15,025      50,002
    STD THEATER CMD & CONTROL SYS (STACCS)..........      14,526      14,526      17,826  ..........      14,526
    SINCGARS FAMILY.................................     310,620     310,620     364,720  ..........     364,720
    EAC COMMUNICATIONS..............................       5,896       5,896      45,896  ..........      45,896
    INFORMATION SYSTEMS.............................      64,142      40,142      64,142  ..........      52,142
    DEFENSE MESSAGE SYSTEM (DMS)....................       7,963       7,963      10,763  ..........       7,963
    LOCAL AREA NETWORK (LAN)........................      61,547      41,547      61,547  ..........      51,547
    GENERAL DEFENSE INTELL PROG (GDIP)..............      29,409      24,188      29,409  ..........      24,188
    ALL SOURCE ANALYSIS SYS (ASAS) (TIARA)..........       9,886       9,886      16,266  ..........       9,886
    IEW--GND BASE COMMON SENSORS (TIARA)............      46,937      46,937  ..........  ..........      46,937
    JOINT STARS (ARMY) (TIARA)......................      82,984      99,484      82,984  ..........      82,984
    NIGHT VISION DEVICES............................      77,132      77,132      85,132  ..........      85,132
    ADV FIELD ARTILLERY TACT SYS (AFATDS)...........      30,897      29,397      30,897         221      29,397
    FAAD C2.........................................      32,942      40,342      32,942           5      40,342
    MANEUVER CONTROL SYSTEM (MCS)...................      13,808      13,808      18,808         152      18,808
    AUTOMATED DATA PROCESSING EQUIP.................     132,751     130,351     132,751  ..........     138,751
    RESERVE COMPONENT AUTOMATION SYS (RCAS).........      83,174     113,174      83,174  ..........      83,174
    INTEGRATED FAMILY OF TEST EQUIP (IFTE)..........      26,449      46,449      26,449  ..........      44,949
    LAB PETROLEUM MODULAR BASE......................       2,786       2,786  ..........           1       2,786
    ITEMS LESS THAN $2.0M (POL).....................       5,537       5,537       3,237  ..........       4,700
    COMBAT SUPPORT MEDICAL..........................      14,310       8,810      14,310  ..........      14,310
    PUSHER TUG, SMALL...............................       3,576       3,576  ..........           1       3,576
    ITEMS LESS THAN $2.0M (FLOAT/RAIL)..............       3,602       2,602       3,602  ..........       2,602
    GENERATORS AND ASSOCIATED EQUIP.................      13,761       8,761      48,761  ..........      13,761
    TRAINING DEVICES, NONSYSTEM.....................      71,561      71,561      76,061  ..........      76,061
    SIMNET/CLOSE COMBAT TACTICAL TRAINER............      30,655  ..........      30,655  ..........      30,655
    MODIFICATION OF IN-SVC EQUIPMENT (OPA-3)........      21,911      14,411      21,911  ..........      14,411
----------------------------------------------------------------------------------------------------------------
                   navstar global positioning system
      The conferees agree to provide $32,502,000 for the 
Navstar Global Positioning System, an increase of $17,500,000 
to complete the installation of global positioning systems on 
all Army active and reserve aircraft. The conferees direct that 
priority installation be given to the 1/207th Aviation Regiment 
because of their unique search and rescue mission in remote 
areas.
                         jstars ground stations
      The conferees do not agree on the transfer language for 
JSTARS ground stations from the Army to the Marine Corps. The 
conferees have provided funds in the Procurement, Marine Corps 
appropriation for JSTARS ground stations.
                       Aircraft Procurement, Navy
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  AIRCRAFT PROCUREMENT, NAVY:                                                                                   
    EA-6B/REMFG (ELECTRONIC WARFARE) PROWLER........  ..........  ..........     140,000  ..........  ..........
    AV-8B (V/STOL) HARRIER..........................     148,163     308,163     229,414           8     229,414
    F/A-18C/D (FIGHTER) HORNET......................     609,904     583,204   1,096,869          18     822,669
    F/A-18C/D (FIGHTER) HORNET (AP-CY)..............  ..........  ..........      86,459  ..........  ..........
    AH-1W (HELICOPTER) SEA COBRA....................      10,385      75,000      10,385           6      75,000
    T-39N...........................................  ..........  ..........      45,000          17      45,000
    EA-6 SERIES.....................................  ..........  ..........      65,000  ..........     165,000
    F-14 SERIES.....................................      59,047      59,047      76,147  ..........     107,522
    H-1 SERIES......................................      54,530      66,530      71,530  ..........      71,530
    P-3 SERIES......................................     178,557     217,857     182,557  ..........     217,357
    TRAINER A/C SERIES..............................         727      45,727         727  ..........         727
    COMMON ECM EQUIPMENT............................       4,234       4,234      34,234  ..........      34,234
    SPARES AND REPAIR PARTS.........................     784,782     784,782     822,912  ..........     784,782
    COMMON GROUND EQUIPMENT.........................     367,017     397,017     367,017  ..........     367,017
    AVIATION MULTIYEAR FUND.........................  ..........     100,000  ..........  ..........  ..........
----------------------------------------------------------------------------------------------------------------
                            f/a-18c/d hornet
      The conferees agree to provide $822,669,000 for the 
acquisition of eighteen F/A-18C/D aircraft. The conferees do 
not agree with the House reduction of funds for procurement of 
ALR-67(V)3 radar warning receivers.
                                 t-39n
      The conferees agree to provide $45,000,000 to purchase 17 
T-39N aircraft. The conferees also agree with the House's 
direction for the Navy to transition to a competitive purchase 
of services contract for logistical support for the T-39N fleet 
after aircraft acquisition. However, the conferees direct that 
this transition should occur at the conclusion of the current 
T-39N contract, which is due to expire at the end of fiscal 
year 1998.
                                 ea-6b
      The conferees agree to provide $165,000,000 for 
modifications and improvements to the EA-6B electronic warfare 
aircraft. The funds are approved for the following purposes: 
$100,000,000 tomodify 20 more aircraft to enable the Navy to 
support Air Force requirements; $40,000,000 to buy 60 shipsets of Band 
9/10 jammer transmitters; and $25,000,000 to buy 30 USQ-113 radio 
countermeasures sets. The conferees further agree to modify the 
Senate's direction to use prior year funds for the acquisition of Band 
9/10 jammers, which is now not necessary because they have provided 
sufficient fiscal year 1996 funds to procure these systems. The 
conferees urge the Navy to buy these systems expeditiously.
                           p-3 modifications
      The conferees agree with the Senate's direction regarding 
acquisition of the AN/AAQ-22 thermal imaging system and 
incorporation of that system into the P-3 Antisurface Warfare 
Improvement Program (AIP).
                          common ecm equipment
      The conferees support the use of the LAU-138/A launch 
rail chaff dispenser system on Navy tactical aircraft as a cost 
effective means for improving aircrew/aircraft survivability. 
The conferees direct that these systems be managed as fleet 
armament equipment pool assets to afford maximum flexibility 
and cost savings, and that all remaining prior year funds 
appropriated for these systems be expeditiously applied toward 
this purpose.
                        aviation multiyear fund
      The conferees do not agree to provide funds for an 
Aviation Multiyear Fund as proposed by the House. The Navy is 
therefore not required to solicit multiyear bids from E-2C, AV-
8B, and T-45 manufacturers, although it may do so if 
circumstances warrant.
                       Weapons Procurement, Navy
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  WEAPONS PROCUREMENT, NAVY:                                                                                    
    TOMAHAWK........................................     161,727     201,727     120,027         164     120,027
    AMRAAM..........................................      81,691      77,491      77,691         115      77,491
    HARPOON.........................................      46,368      86,368      46,368          75      86,368
    DRONES AND DECOYS...............................  ..........  ..........       7,000  ..........  ..........
    TOMAHAWK MODS...................................         684      60,684         684         220      50,000
    WEAPONS INDUSTRIAL FACILITIES...................      13,094      13,094      43,094  ..........      43,094
    VERTICAL LAUNCHED ASROC (VLA)...................  ..........      14,000  ..........  ..........      10,000
    GENERAL PURPOSE BOMBS...........................      46,142  ..........      39,142  ..........  ..........
    2.75 INCH ROCKETS...............................      14,806  ..........      14,806  ..........  ..........
    MACHINE GUN AMMUNITION..........................      11,469  ..........      11,469  ..........  ..........
    PRACTICE BOMBS..................................      11,195  ..........      11,195  ..........  ..........
    CARTRIDGES & CART ACTUATED DEVICES..............      17,974  ..........      17,974  ..........  ..........
    AIRCRAFT ESCAPE ROCKETS.........................      10,586  ..........      10,586  ..........  ..........
    AIR EXPENDABLE COUNTERMEASURES..................      22,828  ..........      22,828  ..........  ..........
    MARINE LOCATION MARKERS.........................         871  ..........         871  ..........  ..........
    JATOS...........................................       4,940  ..........       4,940  ..........  ..........
    5 INCH/54 GUN AMMUNITION........................      21,501  ..........      21,501  ..........  ..........
    CIWS AMMUNITION.................................          93  ..........          93  ..........  ..........
    76MM GUN AMMUNITION.............................       6,432  ..........       6,432  ..........  ..........
    OTHER SHIP GUN AMMUNITION.......................       5,148  ..........       5,148  ..........  ..........
    SMALL ARMS & LANDING PARTY AMMO.................       5,814  ..........       5,814  ..........  ..........
    PYROTECHNIC AND DEMOLITION......................      11,253  ..........      11,253  ..........  ..........
    MINE NEUTRALIZATION DEVICES.....................         787  ..........         787  ..........  ..........
    SHIP EXPENDABLE COUNTERMEASURES.................       8,871  ..........       8,871  ..........  ..........
----------------------------------------------------------------------------------------------------------------
            Procurement of Ammunition, Navy and Marine Corps
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  PROCUREMENT OF AMMUNITION, NAVY & MARINE CORPS:                                                               
    GENERAL PURPOSE BOMBS...........................  ..........      46,142  ..........  ..........      43,000
    2.75 INCH ROCKETS...............................  ..........      14,806  ..........  ..........      14,806
    MACHINE GUN AMMUNITION..........................  ..........      11,469  ..........  ..........      11,469
    PRACTICE BOMBS..................................  ..........      26,195  ..........  ..........      19,000
    CARTRIDGES & CART ACTUATED DEVICES..............  ..........      17,974  ..........  ..........      17,974
    AIRCRAFT ESCAPE ROCKETS.........................  ..........      10,586  ..........  ..........      10,586
    AIR EXPENDABLE COUNTERMEASURES..................  ..........      24,828  ..........  ..........      24,828
    MARINE LOCATION MARKERS.........................  ..........         871  ..........  ..........         871
    JATOS...........................................  ..........       4,940  ..........  ..........       4,940
    5 INCH/54 GUN AMMUNITION........................  ..........      51,701  ..........  ..........      36,000
    CIWS AMMUNITION.................................  ..........          93  ..........  ..........          93
    76 MM GUN AMMUNITION............................  ..........       6,432  ..........  ..........       6,432
    OTHER SHIP GUN AMMUNITION.......................  ..........      10,148  ..........  ..........      10,148
    SMALL ARMS & LANDING PARTY AMMO.................  ..........       5,814  ..........  ..........       5,814
    PYROTECHNIC AND DEMOLITION......................  ..........      11,253  ..........  ..........      11,253
    MINE NEUTRALIZATION DEVICES.....................  ..........         787  ..........  ..........         787
    SHIP EXPENDABLE COUNTERMEASURES.................  ..........       8,871  ..........  ..........       8,871
    5.56 MM, ALL TYPES..............................  ..........      28,487  ..........  ..........      28,487
    7.62 MM, ALL TYPES..............................  ..........      12,082  ..........  ..........      12,082
    .50 CALIBER.....................................  ..........      66,688  ..........  ..........      45,000
    40 MM, ALL TYPES................................  ..........       3,939  ..........  ..........       3,939
    60 MM HE M888...................................  ..........       9,855  ..........  ..........       9,855
    81 MM HE........................................  ..........       4,724  ..........  ..........       4,724
    81 MM, HE, M889A1...............................  ..........  ..........  ..........  ..........      10,000
    81 MM SMOKE SCREEN..............................  ..........       5,445  ..........  ..........       5,445
    81 MM ILLUMINATION (XM816)......................  ..........       6,700  ..........  ..........       6,700
    120 MM TPCSDS-T M865............................  ..........       8,902  ..........  ..........       8,902
    120 MM TP-T M831................................  ..........       3,314  ..........  ..........       3,314
    155 MM CHG. PROP. RED BAG.......................  ..........      32,000  ..........  ..........      16,000
    FUZE, ET, XM762.................................  ..........      10,000  ..........  ..........      10,000
    CTG 25 MM, ALL TYPES............................  ..........       6,724  ..........  ..........       6,724
    9 MM ALL TYPES..................................  ..........       2,979  ..........  ..........       2,979
    ROCKETS, ALL TYPES..............................  ..........       7,034  ..........  ..........       7,034
    AMMO MODERNIZATION..............................  ..........       9,611  ..........  ..........       9,611
    GRENADES, ALL TYPES.............................  ..........       1,174  ..........  ..........       1,174
    ITEMS LESS THAN $2 MIL..........................  ..........      11,211  ..........  ..........      11,211
----------------------------------------------------------------------------------------------------------------
                        5 inch/54 gun ammunition
      The conferees agree to provide $36,000,000, an increase 
of $14,499,000 only for 5 inch/54 gun ammunition. Despite 
Congressional direction to correct the requirements process and 
provide adequate funding for fleet training ammunition, the 
Navy has chosen once again to provide insufficient funding. The 
conferees direct the Secretary of Navy to ensure that adequate 
funding is provided in subsequent budget requests for fleet 
training ammunition.
                   Shipbuilding and Conversion, Navy
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                             Budget           House          Senate        Qty      Conference  
----------------------------------------------------------------------------------------------------------------
  SHIPBUILDING & CONVERSION, NAVY:                                                                              
    SSN-21.............................       1,507,477  ..............         700,000        1         700,000
    NEW SSN (AP-CY) (NO. 2)............  ..............  ..............         100,000  .......         100,000
    ENHANCED SSN CAPABILITY............  ..............       1,000,000  ..............  .......  ..............
    DDG-51.............................       2,162,457       2,162,457       3,580,000  .......       2,162,457
    DDG-51 ADVANCE PROCUREMENT.........           6,800           6,800           6,800  .......           6,800
    LHD-7 AMPHIBIOUS ASSAULT SHIP (MYP)                                                                         
     (AP-CY)...........................  ..............  ..............       1,300,000  .......       1,300,000
    LPD-17.............................  ..............         974,000  ..............        1         974,000
    FAST PATROL CRAFT..................  ..............           9,500  ..............  .......           9,500
    T-AGS 64...........................  ..............          70,000  ..............  .......          16,000
    LSD-52 SELF DEFENSE................  ..............  ..............  ..............  .......          20,000
    OUTFITTING.........................         144,791         134,791         144,791  .......         134,791
    POST DELIVERY......................         174,991         164,991         174,991  .......         164,991
----------------------------------------------------------------------------------------------------------------
                                 ddg-51
      The conferees agree to provide $2,169,257,000 for the 
purchase of three DDG-51 class destroyers. The conferees 
believe contracting for three ships will generate increased 
economies of scale and provide stability for the Navy and the 
shipbuilding industrial base.
                     LPD-17 RCS Engineering Support
      The conferees note that as a result of the Base 
Realignment and Closure decisions, the Navy has reorganized and 
consolidated its Radio Communications Systems (RCS) 
engineering, production, testing, integration and training 
support activities. In assigning RCS engineering support 
workload for the LPD-17 class of ships, the conferees expect 
that the Navy will assign such workload to the most appropriate 
facility.
                                T-AGS-64
      The conferees agree to provide $16,000,000 for advance 
procurement for a T-AGS-64 multi-purpose oceanographic survey 
ship.
                                 LSD-52
      The conferees agree to provide $20,000,000 as recommended 
by the House for one additional SSDS MK-1 unit which the 
conferees direct be installed on LSD-52 during its construction 
prior to delivery of this vessel to the fleet.
                          SHIP COST ADJUSTMENT
      The conferees do not agree to the House proposal to 
modify the ship cost adjustment process by eliminating specific 
designations in the bill, providing new transfer authority, and 
providing reprogramming limitations. The conferees also do not 
agree to the House requirement to include ship cost adjustments 
in the annual omnibus reprogramming process.
      Within the ship cost adjustment implemented in section 
8091 of the Act, the conferees have allocated funds for 
potential settlement of claims on the AOE class of ships. This 
action is taken solely to facilitate the Navy's ability to 
implement a settlement, should one be reached.
                        Other Procurement, Navy
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  OTHER PROCUREMENT, NAVY:                                                                                      
    ELEC SUSPENDED GYRO NAVIGATOR...................       4,108  ..........       4,108  ..........  ..........
    OTHER NAVIGATION EQUIPMENT......................      17,688      27,688      14,119  ..........      27,688
    MINESWEEPING EQUIPMENT..........................      12,985       6,985      12,985  ..........       6,985
    HM&E ITEMS UNDER $2 MILLION.....................      43,389      33,389      39,629  ..........      33,389
    FLEET MODERNIZATION PROGRAM.....................  ..........       3,000  ..........  ..........       3,000
    RADAR SUPPORT...................................         466      14,466         466  ..........      14,466
    SURFACE ELECTRO-OPTICAL SYSTEM..................       3,542       9,542       3,542  ..........       9,542
    SURFACE SONAR SUPPORT EQUIPMENT.................       9,349       9,349      19,609  ..........      19,609
    AN/SQQ-89 SURF ASW COMBAT SYSTEM................      30,297      30,297      25,297  ..........      25,297
    SSN ACOUSTICS...................................      42,269      33,269      42,269  ..........      42,269
    SSTD............................................      13,751      11,051      13,751  ..........      13,751
    C-3 COUNTERMEASURES.............................       9,540      24,540       9,540  ..........      24,540
    NAVY TACTICAL DATA SYSTEM.......................         301      12,301         301  ..........      12,301
    ID SYSTEMS......................................      10,202       9,702      10,202  ..........       9,702
    SHIPBOARD TACTICAL COMMUNICATIONS...............       6,635      12,935       6,635  ..........      12,935
    SATCOM SHIP TERMINALS...........................      98,099      98,099     112,499  ..........     112,499
    SECURE DATA SYSTEM..............................       8,636       8,636       6,037  ..........       6,037
    AN/SSQ-36 (BT)..................................  ..........         200  ..........  ..........         200
    AN/SSQ-62 (DICASS)..............................  ..........       4,090  ..........  ..........       4,090
    AN/SSQ-110 (EER)................................  ..........      21,910  ..........  ..........      21,910
    WEAPONS RANGE SUPPORT EQUIPMENT.................      40,280      38,080      50,030  ..........      48,830
    LAMPS MK III SHIPBOARD EQUIPMENT................      17,914      16,714      17,914  ..........      16,714
    DARP............................................  ..........  ..........       4,500  ..........  ..........
    RAM GMLS........................................      50,037      39,337      72,937  ..........      50,037
    SHIP SELF DEFENSE SYSTEM........................      15,643      35,643      15,643  ..........      15,643
    SURFACE TOMAHAWK SUPPORT EQUIPMENT..............      71,293      71,293      51,293  ..........      61,293
    ANTI-SHIP MISSILE DECOY SYSTEM..................      15,199       2,599      15,199  ..........       2,599
    FLEET MINE SUPPORT EQUIPMENT....................       4,452       4,452       6,152  ..........       6,152
    FORKLIFT TRUCKS.................................       3,750       3,750       1,750  ..........       1,750
    COMPUTER ACQUISITION PROGRAM (NSIPS)............  ..........  ..........  ..........  ..........      13,000
    SAFETY AND SURVIVABILITY ITEMS..................  ..........      20,000  ..........  ..........      10,000
    SPARES AND REPAIR PARTS.........................     210,213     210,213     170,713  ..........     190,213
----------------------------------------------------------------------------------------------------------------
                      HM&E Items Under $2,000,000
      The conferees agree to provide $33,389,000 for ``HM&E 
Items Under $2,000,000'', a reduction of $10,000,000. This 
decrease, which is applied against the Surface Ship Support 
Equipment portion, includes a reduction of $3,760,000 against 
the Gaseous Nitrogen Generator subproject.
                          fleet modernization
      The conferees agree to provide $3,000,000 for procurement 
of propeller shaft composite fairwaters to be backfit on CG 47 
class cruisers during overhaul.
                             radar support
      The conferees agree to provide $14,466,000 for the Radar 
Support program, an increase of $14,000,000. The increase 
includes $9,000,000 for the AN/BPS-16 submarine radar and 
$5,000,000 for the AN/SPA-25G Radar Display program.
                    surface sonar windows and domes
      The conferees agree to provide $6,000,000 for procurement 
of replacement sonar rubber domes and windows, provision of 
safety-related field service repair and change-out of this 
equipment, and product improvements to increase durability and 
service life.
                    weapons range support equipment
      The conferees agree to provide $48,830,000, an increase 
of $8,550,000, for Weapons Range Support Equipment program. The 
net increase includes a decrease of $1,200,000 for the 
Electronic Warfare Response Monitor subprogram and an increase 
of $9,750,000 as proposed by the Senate.
                   surface tomahawk support equipment
      The conferees agree to provide $61,293,000 for the 
Surface Tomahawk Support Equipment program, a reduction of 
$10,000,000. The reduction is against the Afloat Planning 
System (APS) subprogram. The conferees are concerned that the 
Navy does not currently have an operational doctrine for the 
tactical use of Tomahawk cruise missiles by ship commanders. 
Furthermore, the conferees question the need to deploy APS on 
all carriers in light of the Challenge Athena satellite 
communications project.
                            an/sps-48e radar
      The conferees direct that the funds previously 
appropriated for Pulse Doppler Mod Kits for AN/SPS-48E radars 
be released to the Navy. The modification of the radar will 
significantly improve its operational effectiveness when 
operating in littoral waters and therefore will improve the 
entire surface fleet's tactical situation awareness when it is 
incorporated into the Cooperative Engagement Capability. Given 
the vital link between these two programs, the conferees 
further direct that management and execution of the upgrade to 
the AN/SPS-48E radar program be conducted by the Program 
Executive Officer for Theater Air Defense.
                       hf link 11 data terminals
      The conferees agree to the Senate language directing the 
evaluation and selection of the AN/USQ-125 and the AN/USQ-120V 
radio communication link. However, the conferees direct that 
the selection of the objective system is to be no later than 30 
days after the enactment of this Act.
                       Procurement, Marine Corps
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House        Senate      Qty     Conference
----------------------------------------------------------------------------------------------------------------
  PROCUREMENT, MARINE CORPS:                                                                                    
    5.56 MM, ALL TYPES.............................       28,487  ...........       28,487  .......  ...........
    7.62 MM, ALL TYPES.............................        2,082  ...........       12,082  .......  ...........
    .50 CALIBER....................................        8,588  ...........       19,060  .......  ...........
    40 MM, ALL TYPES...............................        3,939  ...........        3,939  .......  ...........
    60 MM HE M888..................................        9,855  ...........        9,855  .......  ...........
    81 MM HE.......................................        4,724  ...........       11,724  .......  ...........
    81 MM, HE, M-889A1.............................  ...........  ...........       17,000  .......  ...........
    81 MM SMOKE SCREEN.............................        5,445  ...........        5,445  .......  ...........
    120 MM TPCSDS-T M865...........................        8,902  ...........        8,902  .......  ...........
    120 MM TP-T M831...............................        3,314  ...........        3,314  .......  ...........
    CTG 25 MM, ALL TYPES...........................        6,724  ...........        6,724  .......  ...........
    9 MM ALL TYPES.................................        2,979  ...........        2,979  .......  ...........
    GRENADES, ALL TYPES............................          474  ...........          474  .......  ...........
    ROCKETS, ALL TYPES.............................        7,034  ...........        7,034  .......  ...........
    AMMO MODERNIZATION.............................        9,611  ...........        9,611  .......  ...........
    ITEMS LESS THAN $2 MIL.........................        8,711  ...........       17,262  .......  ...........
    MODIFICATION KITS (TRKD VEH)...................        3,273       15,573       17,773  .......       15,573
    HAWK MOD.......................................        3,040        4,688        3,040  .......        3,040
    MANPACK RADIOS AND EQUIP.......................        9,735       12,735        9,735  .......       12,735
    MULTI-SERV ADF FIELD ART TACTICAL DATA SYS.....       12,140       23,140       23,140      188       12,140
    INTELLIGENCE SUPPORT EQUIPMENT.................        6,283       18,783        6,283  .......       35,283
    NIGHT VISION EQUIPMENT.........................        2,283        2,283        4,283  .......        4,283
    LIGHT RECON VEHICLE............................  ...........        2,000  ...........  .......  ...........
    TRAILERS.......................................        4,932       10,439       10,432  .......       10,432
    MODIFICATION KITS..............................        6,496        7,496        6,496  .......        7,496
    ITEMS LESS THAN $2 MIL.........................           75        1,975           75  .......           75
    PRECISION GUNNERY TRAINING SYSTEM..............  ...........        5,900  ...........  .......        5,900
    M240 MACHINE GUN MODS..........................  ...........        2,200  ...........  .......  ...........
    ASSET TRACKING LOGISTICS SYSTEM................  ...........       17,850  ...........  .......  ...........
    LIGHTWEIGHT COMPUTER UNITS.....................  ...........        3,800  ...........  .......  ...........
----------------------------------------------------------------------------------------------------------------
                     intelligence support equipment
      The conferees agree to provide $35,283,000 for 
intelligence support equipment, an increase of $29,000,000. Of 
the increase, $16,500,000 is only for two JSTARS ground 
stations and $12,500,000 is only for Commander's Tactical 
Terminals.
                       right hand drive vehicles
      The conferees have reviewed the implementation of Public 
Law 100-370, which amended title 10 U.S.C. (2253) to limit the 
amount available for purchase of right hand drive vehicles to 
$12,000. The conferees agree that this limitation should only 
apply to the purchase of passenger sedans manufactured outside 
of the United States. Further, this limitation does not affect 
the use of any right hand drive vehicle provided as part of the 
local contribution towards the basing of U.S. forces in the 
Host Nation.
                    Aircraft Procurement, Air Force
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                             Budget           House          Senate        Qty      Conference  
----------------------------------------------------------------------------------------------------------------
  AIRCRAFT PROCUREMENT, AIR FORCE:                                                                              
    B-1B (MYP).........................          56,336          56,336         143,336  .......          56,336
    B-2A (MYP).........................         279,921         772,921         279,921  .......         772,921
    F-15E..............................  ..............         250,000         311,210        6         311,210
    F-15E ADV PROC.....................  ..............  ..............          50,190  .......          50,190
    F-16 C/D (MYP).....................  ..............          50,000         159,400        6         159,400
    F-16 C/D ADV PROC..................  ..............  ..............          15,400  .......  ..............
    C-17 (MYP).........................       2,402,491       2,402,491       2,412,491        8       2,412,491
    C-17 (MYP) (AP-CY).................  ..............  ..............         180,000  .......  ..............
    WC-130.............................  ..............  ..............         221,167        3         132,700
    STRATEGIC AIRLIFT..................         183,757         183,757          75,000  .......         183,757
    JPATS..............................          54,968          44,968          54,968        3          54,968
    E-8B...............................         394,634         394,634         371,334        2         377,434
    B-1B...............................          75,383          82,593          76,283  .......          68,483
    B-52...............................           4,908          24,908           4,908  .......           4,908
    F-117..............................          47,660          47,660          44,060  .......          47,660
    A-10...............................          79,424          79,424          33,324  .......          41,024
    F-15...............................          79,488          78,288          63,688  .......          78,288
    F-16...............................         118,606         118,606         118,606  .......         120,606
    C-5................................          45,431          51,631          45,431  .......          51,631
    C-130..............................          84,399          94,399          88,399  .......          94,399
    C-135..............................         142,764         334,764         251,264  .......         238,764
    DARP MODS..........................  ..............          79,000          48,000  .......          53,000
    SPARES AND REPAIR PARTS............         603,619         581,719         572,781  .......         586,281
    COMMON AGE.........................         216,048         212,510         223,248  .......         212,510
    F-15 POST PRODUCTION SUPPORT.......          13,955  ..............          13,955  .......           6,978
    F-16 POST PRODUCTION SUPPORT.......         194,672          94,672         158,572  .......         126,622
    OTHER PRODUCTION CHARGES...........         167,676         167,676         188,576  .......         187,676
    DARP SUPPORT EQUIPMENT.............         194,374         194,374         214,374  .......         194,374
----------------------------------------------------------------------------------------------------------------
                           strategic airlift
      The conferees agree to provide $183,757,000 for strategic 
airlift, the amount of the budget request. It is the conferees' 
belief that the Defense Acquisition Board's upcoming decision 
on the optimal composition of the airlift fleet will require 
the continued production of C-17 aircraft. The conferees 
therefore direct that from the amount of funding provided for 
strategic airlift the Department of Defense must give first 
priority to fully funding advance procurement for continued 
production of C-17 aircraft in fiscal year 1997.
                           b-1b modifications
      The conferees agree to provide $68,483,000 for B-1B 
modifications, a decrease of $6,900,000 to the budget request. 
The amount provided by the conferees includes a decrease of 
$14,100,000 from cost savings for miscellaneous modifications 
and an increase of $7,200,000 for reliability and 
maintainability improvements identified during the B-1B 
operational readiness assessment. The conferees also agree with 
the Senate's reporting requirement about expanding the B-1B 
conventional mission upgrade program.
                                  a-10
      The conferees agree to provide $41,024,000, a decrease of 
$38,400,000 to the budget request for A-10 modifications. The 
deleted funds are excess to program requirements for fiscal 
year 1996.
                           f-15 modifications
      The conferees agree to provide $78,288,000, a decrease of 
$1,200,000 to the budget request for F-15 modifications. The 
conferees agree with the House reduction of funds for 
installation of landing gear wiring switch kits. The conferees 
do not agree with the Senate reduction of funds for a fighter 
data link modification. In restoring the $15,800,000 deleted by 
the Senate, the conferees direct that $9,000,000 may only be 
used to acquire Joint TacticalInformation Distribution System 
(JTIDS) class II terminals for one squadron of F-15 aircraft. The 
remaining $6,800,000 is available only for the Multifunctional 
Information Distribution System (MIDS) variant project.
      The Under Secretary of Defense (Acquisition and 
Technology) has informed the conferees of the Defense 
Department's recent decision to meet the F-15 fighter data link 
(FDL) requirements through the MIDS program. The conferees 
understand that the Department intends full and open 
competition for FDL production. The conferees direct the Under 
Secretary to assure the congressional defense committees in 
writing that the use of MIDS architecture and software will not 
place U.S. companies at a competitive disadvantage. This 
assurance is required before release of the formal Request for 
Proposal for the F-15 fighter data link.
                           F-16 Modifications
      The conferees agree to provide $120,606,000 for F-16 
modifications, an increase of $2,000,000 to the budget request. 
The additional funding provided is only for initial acquisition 
of 600 gallon fuel tanks for destructive testing, evaluation 
and limited operational use.
                          C-130 Modifications
      The conferees agree to provide $94,399,000 for C-130 
modifications, an increase of $10,000,000 to the budget 
request. Of the additional funding provided by the conferees, 
$6,000,000 is only for threat defensive systems, and $4,000,000 
is only for acquisition of AN/AAQ-22 thermal imaging systems 
for 10 Air Force Reserve HC-130 aircraft, as recommended by the 
Senate.
                          C-135 Modifications
      The conferees agree to provide $238,764,000, for C-135 
modifications, an increase of $96,000,000 to the budget 
request. The additional funding provided by the conferees is 
only for continued reengining of the Air Guard and Reserve KC-
135 tanker fleet. The conferees have provided sufficient 
funding for four reengining kits.
                           DARP Modifications
      The conferees agree to provide $53,000,000 for Defense 
Airborne Reconnaissance Program (DARP) modifications, an 
increase of $53,000,000 to the budget request. Of the 
additional funding provided by the conferees, $48,000,000 is 
only for the acquisition of two RC-135 reengining kits and 
$5,000,000 is only for costs associated with the refurbishment 
of the SR-71 aircraft.
                    Aircraft Spare and Repair Parts
      The conferees agree to provide $586,281,000 for aircraft 
spare and repair parts, a decrease of $17,338,000 to the budget 
request. The amount of funding provided by the conferees 
includes a decrease of $21,900,000 for C-17 spares, a decrease 
of $8,938,000 for T-1 spares and an increase of $13,500,000 for 
F100-229 engine spares.
                   electronic warfare force structure
      The conferees strongly agree with Senate report language 
with respect to retaining at least 12 EF-111A Raven jammer 
aircraft in the primary aircraft inventory through fiscal year 
1999, and with the Senate directed reporting requirements.
                     Missile Procurement, Air Force
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate     Quantity   Conference
----------------------------------------------------------------------------------------------------------------
  MISSILE PROCUREMENT, AIR FORCE:                                                                               
    HAVE NAP........................................  ..........      39,000      38,000  ..........      38,000
    AMRAAM..........................................     190,672     178,366     182,672         291     182,672
    TARGET DRONES...................................      39,150      36,150      39,150          88      36,150
    CONVENTIONAL ALCM...............................  ..........      27,200  ..........         100      15,000
    GLOBAL POSITIONING (MYP)........................     136,060     136,060     118,660           4     126,060
    GLOBAL POSITIONING (MYP) (AP-CY)................      38,412  ..........      33,412  ..........      33,412
    SPACE BOOSTERS..................................     464,953     459,953     405,903  ..........     433,853
    MEDIUM LAUNCH VEHICLE...........................     150,929     150,929     147,765           4     150,929
    DEF METEOROLOGICAL SAT PROG.....................      29,265      29,265      26,876  ..........      29,265
    DEFENSE SUPPORT PROGRAM (MYP)...................     102,911      67,011      61,375  ..........      67,011
    SPECIAL PROGRAMS................................   1,605,765   1,483,565   1,573,765  ..........   1,210,765
    2.75 INCH ROCKET MOTOR..........................      10,402  ..........      10,402  ..........  ..........
    2.75 INCH ROCKET HEAD SIGNATURE.................       1,993  ..........       1,993  ..........  ..........
    ITEMS LESS THAN $2,000,000......................         950  ..........         950  ..........  ..........
    5.56 MM.........................................       5,534  ..........       5,534  ..........  ..........
    CARTRIDGE CHAFF RR-180..........................      10,030  ..........      10,030  ..........  ..........
    CARTRIDGE CHAFF RR-188..........................       1,192  ..........       1,192  ..........  ..........
    ITEMS LESS THAN $2,000,000......................       5,162  ..........       5,162  ..........  ..........
    MK-82 INERT/BDU-50..............................       8,253  ..........       8,253  ..........  ..........
    TIMER ACTUATOR FIN FUZE.........................       6,242  ..........       6,242  ..........  ..........
    BOMB PRACTICE 25 POUND..........................       5,928  ..........       5,928  ..........  ..........
    MK-84 BOMB-EMPTY................................       9,261  ..........       9,261  ..........  ..........
    SENSOR FUZED WEAPON.............................     165,447  ..........     165,447  ..........  ..........
    CBU-89 GATOR INERT..............................       6,531  ..........       6,531  ..........  ..........
    ITEMS LESS THAN $2,000,000......................       1,500  ..........       1,500  ..........  ..........
    FLARE, IR MJU-7B................................      21,859  ..........      21,859  ..........  ..........
    MJU-23 FLARE....................................       6,483  ..........       6,483  ..........  ..........
    MJU-10B.........................................       7,204  ..........       7,204  ..........  ..........
    M-206 CARTRIDGE FLARE...........................      11,250  ..........      11,250  ..........  ..........
    INITIAL SPARES..................................         621  ..........         621  ..........  ..........
    REPLENISHMENT SPARES............................       2,329  ..........       2,329  ..........  ..........
    MODIFICATIONS...................................       2,340  ..........       2,340  ..........  ..........
    ITEMS LESS THAN $2,000,000......................      11,289  ..........      11,289  ..........  ..........
    M-16 A2 RIFLE...................................       5,048  ..........       5,048  ..........       5,048
----------------------------------------------------------------------------------------------------------------
                             space boosters
      The conferees agree to provide $433,853,000 for the 
procurement of the Titan IV heavy lift space booster, a 
decrease of $31,100,000 to the budget request. The 
recommendation makes the following reductions: $20,000,000 for 
no longer needed relocation costs; $6,100,000 for unadjudicated 
claims; $5,000,000 from contractor consolidation savings.
                  Procurement of Ammunition, Air Force
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate     Quantity   Conference
----------------------------------------------------------------------------------------------------------------
  PROCUREMENT OF AMMUNITION, AIR FORCE:                                                                         
    2.75 INCH ROCKET MOTOR..........................  ..........      10,402  ..........      30,000      10,402
    2.75,, ROCKET HEAD SIGNATURE....................  ..........       1,993  ..........      24,320       1,993
    ITEMS LESS THAN $2,000,000......................  ..........         950  ..........  ..........         950
    5.56 MM.........................................  ..........       5,534  ..........      13,835       5,534
    30 MM TRAINING..................................  ..........      14,480  ..........       1,360       7,000
    CARTRIDGE CHAFF RR-180..........................  ..........      10,030  ..........         720      10,030
    CARTRIDGE CHAFF RR-188..........................  ..........       1,192  ..........         903       1,192
    ITEMS LESS THAN $2,000,000......................  ..........       5,162  ..........  ..........       5,162
    MK-82 INERT/BDU-50..............................  ..........       8,253  ..........      12,586       8,253
    TIMER ACTUATOR FIN FUZE.........................  ..........       6,242  ..........      10,000       6,242
    BOMB PRACTICE 25 POUND..........................  ..........       5,928  ..........     400,000       5,926
    MK-84 BOMB EMPTY................................  ..........       9,261  ..........       3,718       9,261
    SENSOR FUZED WEAPON.............................  ..........     165,447  ..........         500     165,447
    CBU-89 GATOR INERT..............................  ..........       6,531  ..........         236       6,531
    CBU (COMBINED EFFECTS MUNITIONS)................  ..........  ..........  ..........  ..........      30,000
    ITEMS LESS THAN $2,000,000......................  ..........  ..........  ..........  ..........       1,500
    FLARE, IR MJU-7B................................  ..........      21,859  ..........     945,049      21,859
    MJU-23 FLARE....................................  ..........       6,483  ..........       7,426       6,483
    MJU-10B.........................................  ..........       7,204  ..........     110,436       7,204
    M-206 CARTRIDGE FLARE...........................  ..........      11,250  ..........     331,564      11,250
    INITIAL SPARES..................................  ..........         621  ..........  ..........         621
    REPLENISHMENT SPARES............................  ..........       2,329  ..........  ..........       2,329
    MODIFICATIONS...................................  ..........       2,340  ..........  ..........       2,340
    ITEMS LESS THAN $2,000,000......................  ..........      11,289  ..........  ..........      11,289
    M-16 A2 RIFLE...................................  ..........       5,048  ..........  ..........  ..........
----------------------------------------------------------------------------------------------------------------
                      Other Procurement, Air Force
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate     Quantity   Conference
----------------------------------------------------------------------------------------------------------------
  OTHER PROCUREMENT, AIR FORCE:                                                                                 
    CBU-87 (COMBINED EFFECTS MUNITION)..............  ..........  ..........      30,000  ..........  ..........
    ARMORED SEDAN...................................         202         202         260           1         260
    MODIFICATIONS...................................         200         200       3,500  ..........       1,000
    ITEMS LESS THAN $2,000,000......................       2,352      14,176       2,352  ..........      14,176
    THEATER AIR CONTROL SYS IMPROVEMENT.............      32,345      32,345      27,745  ..........      27,745
    WEATHER OBSERV/FORCAST..........................       7,103       7,103      13,803  ..........      13,803
    DEFENSE SUPPORT PROGRAM.........................      36,909      36,909      11,909  ..........      36,909
    STRATEGIC COMMAND AND CONTROL...................      67,596      67,596      58,095  ..........      58,095
    AUTOMATIC DATA PROCESSING EQUIP.................      23,958      32,458      23,958  ..........      23,958
    BASE LEVEL DATA AUTO PROGRAM....................      26,851      26,851      38,451  ..........      35,151
    BASE INFORMATION INFRASTRUCTURE.................      73,138      56,538      56,385  ..........      56,385
    MILSATCOM.......................................      43,362      43,362      13,207  ..........      43,362
    COMM ELECT MODS.................................      20,424       9,724      20,424  ..........       9,724
    MOBILITY EQUIPMENT..............................      17,670      31,770      29,570  ..........      29,570
    WARTIME HOST NATION SUPPORT.....................       1,699       1,699  ..........  ..........  ..........
    INTELLIGENCE PRODUCTION ACTIVITY................      67,928      69,128      61,228  ..........      69,128
    SELECTED ACTIVITIES.............................   5,409,357   5,117,657   5,189,357  ..........   4,904,257
----------------------------------------------------------------------------------------------------------------
                       Items Less Than $2,000,000
      The conferees agree to provide $14,176,000 for ``Items 
Less Than $2,000,000'', an increase of $11,874,000. The 
increase is provided only for those items identified by the Air 
Force as shortfalls.
             air combat measurement instrumentation system
      In fiscal year 1995, Congress authorized $25,000,000 to 
upgrade the only Air National Guard Combat Readiness Training 
Center(CRTC) which lacks a modernized Air Combat Measurement 
Instrumentation System. That CRTC has access to unencumbered air space, 
a pilot training resource which is increasingly scarce. The conferees 
note that following the submission of the fiscal year 1996 request, the 
Air Force developed a less costly plan to provide the needed 
instrumentation capability for $12,200,000. The conferees encourage the 
Defense Department to seek ways, including reprogramming, to promptly 
fund this plan within existing funds.
                       Procurement, Defense-Wide
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
  PROCUREMENT, DEFENSE-WIDE:                                                                                    
    DARP............................................     179,307     161,975     179,307  ..........     161,575
    DEFENSE INFORMATION INFRASTRUCTURE..............      54,234      58,734      54,234  ..........      58,734
    CLASSIFIED PROGRAMS.............................     844,903     858,903     766,403  ..........     763,190
  SHIPBUILDING:                                                                                                 
    PC, CYCLONE CLASS...............................  ..........  ..........  ..........           1      20,000
    MK V SPECIAL OPERATIONS CRAFT (MK V SOC)........      19,501      19,501      37,201           4      37,201
  OTHER PROCUREMENT PROGRAMS:                                                                                   
    SPECIAL WARFARE EQUIPMENT.......................      11,776      11,776       7,483  ..........       7,483
    LIGHT STRIKE VEHICLE............................  ..........       6,000  ..........  ..........       6,000
----------------------------------------------------------------------------------------------------------------
                defense airborne reconnaissance program
      The conferees agree to provide $161,575,000 for 
procurement for the Defense Airborne Reconnaissance Program 
(DARP), a decrease of $17,732,000 to the budget request. The 
conferees support the Army's identified need for a short range 
unmanned air vehicle (UAV), but remain concerned with the 
continuing problems associated with the Hunter program. As a 
result, the conferees have denied funding for marinization of 
the Hunter UAV and direct that the remaining fiscal year 1996 
funds provided for Hunter not be obligated until the 
Appropriations Committees receive the results of the Defense 
Acquisition Board's review of the program. This review should 
include all options for fulfilling the Army's UAV requirement. 
The conferees further direct that use of these funds for any 
other purpose is to be handled through normal reprogramming 
procedures.
                      patrol craft--cyclone class
      The conferees agree to provide $20,000,000 for the 
procurement of one additional PC-Cyclone class operations 
patrol craft/vessel to continue to meet force requirements.
                          natural gas vehicles
      The conferees recommend the Department develop an 
implementation plan and a demonstration effort based on the 
1993 Navy study which specified natural gas vehicles as the 
vehicle of choice for achieving significant emission reductions 
on military bases.
                  National Guard and Reserve Equipment
      The conferees agree to provide $777,000,000 for National 
Guard and Reserve Equipment as proposed by the Senate instead 
of $980,125,000 as proposed by the House.
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate     Quantity   Conference
----------------------------------------------------------------------------------------------------------------
          NATIONAL GUARD & RESERVE EQUIPMENT                                                                    
                   RESERVE EQUIPMENT                                                                            
  ARMY RESERVE:                                                                                                 
    MISCELLANEOUS EQUIPMENT.........................  ..........  ..........      90,000  ..........      90,000
    TACTICAL VEHICLES...............................  ..........      52,000  ..........  ..........  ..........
    NIGHT VISION EQUIPMENT..........................  ..........       2,500  ..........  ..........  ..........
    ENGINEER EQUIPMENT..............................  ..........      20,000  ..........  ..........  ..........
    VARI-REACH LIFT TRUCKS..........................  ..........       4,500  ..........  ..........  ..........
    MK-19 GRENADE LAUNCHERS.........................  ..........       2,000  ..........  ..........  ..........
    MEDICAL EQUIPMENT...............................  ..........       2,000  ..........  ..........  ..........
    3000 GPH ROWPU..................................  ..........       3,000  ..........  ..........  ..........
    130T FLOATING CRANE.............................  ..........       6,000  ..........  ..........  ..........
    PUSHER BOAT.....................................  ..........       5,000  ..........  ..........  ..........
    5 KW LIGHT TOWER................................  ..........       5,000  ..........  ..........  ..........
    LASER LEVELING SYSTEMS..........................  ..........       4,000  ..........  ..........  ..........
    AUTOMATIC BUILDING MACHINES.....................  ..........       3,000  ..........  ..........  ..........
  NAVY RESERVE:                                                                                                 
    MISCELLANEOUS EQUIPMENT.........................  ..........      33,300      40,000  ..........      40,000
    F/A-18 UPGRADES.................................  ..........      48,000  ..........  ..........  ..........
    MIUW TSQ-108....................................  ..........      40,000  ..........  ..........  ..........
  MARINE CORPS RESERVE:                                                                                         
    MISCELLANEOUS EQUIPMENT.........................  ..........      30,525      50,000  ..........      50,000
    CBT. VEHICLE TRAINER............................  ..........       3,800  ..........  ..........  ..........
    CH-53 HELICOPTERS...............................  ..........      50,000  ..........  ..........  ..........
    DIGITAL COMMAND & CONTROL NETWORK...............  ..........       4,300  ..........  ..........  ..........
    COMM COMPANY EQUIPMENT..........................  ..........       5,000  ..........  ..........  ..........
    UH-1N NAV/FLIR UPGRADES.........................  ..........       5,000  ..........  ..........  ..........
  AIR FORCE RESERVE:                                                                                            
    MISCELLANEOUS EQUIPMENT.........................  ..........      30,300      40,000  ..........      40,000
    C-130H..........................................  ..........     135,600  ..........  ..........  ..........
               NATIONAL GUARD EQUIPMENT                                                                         
  ARMY NATIONAL GUARD:                                                                                          
    MISCELLANEOUS EQUIPMENT.........................  ..........      15,000     100,000  ..........     100,000
    TACTICAL TRUCK NEW PROCUREMENT..................  ..........      10,000  ..........  ..........  ..........
    TACTICAL TRUCK SLEP (5 TON).....................  ..........      10,000  ..........  ..........  ..........
    TACTICAL TRUCK SLEP (2\1/2\ TON)................  ..........      10,000  ..........  ..........  ..........
    M109 ACE........................................  ..........      10,000  ..........  ..........  ..........
    IFTE............................................  ..........      10,000  ..........  ..........  ..........
    NIGHT VISION EQUIPMENT..........................  ..........      10,000  ..........  ..........  ..........
    CHEM/BIO EQUIPMENT..............................  ..........       5,000  ..........  ..........  ..........
    AH-1 (C-NITE)...................................  ..........      10,000  ..........  ..........  ..........
    FADEC...........................................  ..........      10,000  ..........  ..........  ..........
    AH-64 COMBAT MISSION SIMULATOR..................  ..........      15,000  ..........  ..........  ..........
    UH-1 SLEP.......................................  ..........      10,000  ..........  ..........  ..........
    AH-1 BORE SIGHT EQUIPMENT.......................  ..........       5,000  ..........  ..........  ..........
  AIR NATIONAL GUARD:                                                                                           
    MISCELLANEOUS EQUIPMENT.........................  ..........  ..........      57,000  ..........      57,000
    F-16 220E ENGINES...............................  ..........      10,000  ..........  ..........  ..........
    C-130H..........................................  ..........     203,400  ..........  ..........  ..........
    AIRLIFT DEFENSIVE SYSTEMS.......................  ..........      10,000  ..........  ..........  ..........
    AIRLIFT REPLACEMENT RADAR.......................  ..........       6,800  ..........  ..........  ..........
    C-130 MODS......................................  ..........      15,000  ..........  ..........  ..........
    AUTOMATIC BUILDING MACHINES.....................  ..........       2,000  ..........  ..........  ..........
    F-16 RADAR WARNING RECEIVERS....................  ..........      36,200  ..........  ..........  ..........
  DOD:                                                                                                          
    MISC EQUIPMENT (GUARD & RESERVE AIRCRAFT).......  ..........  ..........     400,000  ..........     400,000
----------------------------------------------------------------------------------------------------------------
      The conferees agree to the Senate provision which 
requires the Chiefs of the Reserve and National Guard 
components to prepare and submit a modernization priority 
assessment for their respective Reserve and National Guard 
components and have established 30 days after the enactment of 
the Act as the deadline for this submission.
                        miscellaneous equipment
      The conferees concur with the Senate position that the 
Reserves and National Guard should exercise control of funds 
provided for their modernization in this account with priority 
consideration for miscellaneous equipment appropriations given 
to the following items:
      Avenger, heavy truck modernization, radar warning 
receivers, laser leveling systems, AH-64 combat mission 
simulators, automatic building machines, HMMWVs, UH-60 
Upgrades, F-18 upgrades, 2\1/2\ ton truck ESP, UH-1 Huey SLEP, 
AH-1 (C-NITE), M-9 ACE, night vision equipment, IFTE, external 
fuel tanks, AN/AQS-14 airborne mine countermeasures trainer, 
MIUW vans, modular airborne fire fighting systems, AH-1 
boresighting devices, FADEC for UH-1 and CH-47, C-9 upgrades, 
small arms simulators, HC-130N conversions, M-915/916 heavy 
dump trucks, 5-ton flatbed trailers, SQQ-T1 trainer, KC-135 re-
engining, UH-60Q helicopter upgrades, driver's night viewers, 
unmanned aerial vehicles, heavy equipment transport system, C-
12 and C-20 aircraft, CT-39 Navy/Marine Corps replacement 
aircraft, SINCGARS radios, Medium Truck SLEP, and M109A5 
Howitzer upgrades.
      The conferees also agree that while they have established 
a separate aircraft account, other aircraft may be purchased 
from the miscellaneous equipment account at the discretion of 
the Reserve and National Guard component chiefs.
                  national guard and reserve aircraft
      The conferees agree to provide $400,000,000 for the 
acquisition of aircraft to support Reserve and National Guard 
missions and agree that the following aircraft shall be 
purchased:
C-130 H for the Air Force Reserve and Air National Guard 
    (10)................................................    $339,000,000
CH-53E for the Marine Corps Reserve (2).................      50,000,000
C-26 for the National Guard (2).........................      11,000,000
                    Information Technology Resources
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
              Appropriations and Programs                      House              Senate           Conference   
----------------------------------------------------------------------------------------------------------------
Operation and Maintenance, Army:                                                                                
    EDCARS/DSREDS......................................             2,000                  0              2,000 
Operation and Maintenance, Navy:                                                                                
    NSIPS..............................................             9,000                  0              2,500 
Operation and Maintenance, Air Force:                                                                           
    Base Support.......................................           889,348            913,648            889,448 
        (CAMS).........................................                (0)             (+500)             (+500)
        (TICARRS)......................................                (0)          (+10,000)          (+10,000)
        (BLSM).........................................                (0)                (0)          (-10,400)
      Note: Conferees agree to House recommendations on CAMS, TICARRS, and BLSM but have made the funding       
adjustments in the Base Support line rather than in the line proposed by the House.                             
    Information Technology.............................                 0                100                  0 
    EDCARS/DSREDS......................................             2,000                  0              2,000 
Operation and Maintenance, Defensewide:                                                                         
    Information Technology.............................           112,000                  0             12,000 
        (JLSC).........................................         (+100,000)                (0)                (0)
        (DISA COOP)....................................          (+12,000)                (0)          (+12,000)
Operation and Maintenance, Army Reserve:                                                                        
    RCAS...............................................            -4,000                  0             -4,000 
Operation and Maintenance, Navy Reserve:                                                                        
    NSIPS..............................................             9,000                  0              2,500 
Operation and Maintenance, Army National Guard:                                                                 
    Information Management.............................            29,396             59,456             44,556 
        (RCAS).........................................          (-33,500)                (0)          (-18,300)
        (Distance Learning)............................           (+3,400)                (0)           (+3,400)
Other Procurement, Army:                                                                                        
    Automated Data Processing Equipment................           130,151            132,751            138,751 
        (Distance Learning)............................           (+9,600)                (0)           (+6,000)
        (General Reduction)............................          (-12,000)                (0)                (0)
    RCAS...............................................           113,134             83,174             83,174 
Other Procurement, Navy:                                                                                        
    NSIPS..............................................                 0                  0             13,000 
Other Procurement, Air Force:                                                                                   
    Automatic Data Processing Equipment................            32,458             23,958             23,958 
        (CAMS).........................................           (+4,000)                (0)                (0)
        (Equipment Management System)..................           (+4,500)                (0)                (0)
    Base Level Data Automation.........................            26,851             38,451             35,151 
        (CMOS).........................................                (0)           (+3,250)                (0)
        (REMIS)........................................                (0)           (+8,300)           (+8,300)
Operation and Maintenance, Defense Wide:                                                                        
    Defense Information Infrastructure.................            58,734             54,234             58,734 
        (DISA COOP)....................................           (+4,500)                (0)           (+4,500)
Research, Development, Test, and Evaluation, Air Force:                                                         
    Advanced Computing Technology......................            36,305             11,005             36,305 
        (BLSM transfer from O&M).......................          (+10,400)                (0)          (+10,400)
        (IMDS).........................................          (+15,200)                (0)          (+15,200)
----------------------------------------------------------------------------------------------------------------
                     joint logistics systems center
      The conferees do not agree to the House proposal to 
provide an additional $100,000,000 in the Operation and 
Maintenance, Defense-wide appropriation for the Joint Logistics 
Systems Center (JLSC). The conferees recognize that there is 
the potential for significant cost savings from effective 
logistics systems modernization, and believe that JLSC and its 
programs should remain a top priority. A September, 1995 report 
to the House Appropriations Committee by the Committee's 
Surveys and Investigations Staff, however, indicates that the 
JLSC is not properly organized to accomplish the redesign of 
the Department of Defense's logistics systems. The conferees 
direct that not more than half of the funds requested in the 
budget and appropriated for JLSC may be obligated until the 
Secretary of Defense has taken appropriate action to correct 
JLSC's organizational deficiencies and has designated the Air 
Force as the executive agency for the JLSC, which will remain 
the responsibility of the Deputy Undersecretary of Defense 
(Logistics) and will remain located at Wright-Patterson Air 
Force Base. The conferees further direct that the Secretary of 
Defense provide a report to the congressional defense 
committees by February 1, 1996 which explains his plan for 
improving the management of the Joint Logistics Systems Center, 
including improved levels of management, technical, 
contracting, and acquisition support.
               navy standard integrated personnel system
      The conferees have provided $18,000,000 as recommended by 
the House for the Navy Standard Integrated Personnel System 
(NSIPS). The additional funding is only for NSIPS as directed 
in House Report 104-208, page 134, except that $13,000,000 is 
appropriated in Other Procurement, Navy; $2,500,000 in 
Operation and Maintenance, Navy Reserve; and $2,500,000 in 
Operation and Maintenance, Navy. The conferees concur with the 
Department's plan to use a joint working group to define the 
functional and technical requirements for a standard military 
personnel management system. The conferees believe that 
parallel development of NSIPS is critical and direct the Navy, 
the Under Secretary of Defense for Personnel and Readiness, and 
the Assistant Secretary of Defense for C\3\I to continue NSIPS 
development and implementation as a joint Naval Reserve and 
active team project which will include the core capabilities 
required to support joint requirements for the objective DOD 
field level data collection personnel system. The conferees 
concur with the Department's decision to designate the Navy as 
executive agent for prototyping and testing these field level 
applications or core capabilities and the Air Force as the 
executive agent for the database.
      The conferees are aware of Navy needs to also continue to 
consolidate and integrate its headquarters personnel systems. 
The House previously directed that the Navy Military Personnel 
Distribution System (NMPD) central design authority (CDA) be 
assigned to the Enlisted Personnel Management Center (EPMAC) to 
assure the most efficient and cost effective development and 
maintenance of this system. The conferees understand that the 
Military Assignment, Selection, and Transfer System (MAST) has 
been conceived to modernize Naval personnel management by 
combining legacy systems and allowing these systems to operate 
in a more cost effective and client friendly environment. EPMAC 
has been identified as the technical expert possessing the 
expertise required to meet the development demands of MAST and 
NMPD systems. The conferees direct the Navy to assign CDA 
responsibilities, implementation, and funding functions to 
EMPAC for the MAST and NMPD systems by January 1996, and that 
the transfer of the NMPD system to EPMAC be completed by 
September 1996. The conferees direct the Navy to allocate the 
required funding to EPMAC in support of the MAST and NMPD 
system development to include hardware, software, and personnel 
requirements.
      The conferees concur with the House direction that the 
Department of the Navy place the collocated Naval 
Telecommunications and Communications Station (NTCS) functions 
and operations under the operational control and command of the 
Naval Reserve Information Systems Office, except that this 
direction shall only apply to the Central Design Agency 
functions and its related support functions and civilian 
personnel. The conferees direct that these functions continue 
to be supported through the Defense Business Operations Fund.
                         other defense agencies
      The conferees concur with the House direction provided in 
House Report 104-208, pages 136-137 regarding DISA megacenter 
outsourcing. The conferees are adamant that the reporting 
requirements and directions provided in the House report be 
followed by the Department of Defense. While the conferees may 
be able to support outsourcing some non-essential military 
functions and services prior to the completion of recommended 
base closing and realignment consolidations, the conferees 
expect the reporting requirements contained in the House report 
to occur first along with proper Congressional committee 
oversight.
      The conferees concur with the House National Security 
Committee efforts urging the Department of Defense to privatize 
or outsource non-essential military services such functions as 
civilian payroll and payroll-and-accounting for nonappropriated 
instrumentality functions. However, the conferees recommend the 
Department also look to franchising for these and other similar 
services from other Federal agencies that already provide 
similar, cost effective services. In this regard, the conferees 
urge the Department to proceed with the recommendation made in 
the statement of the managers accompanying the fiscal year 1995 
Defense Appropriations Act to initiate a prototype for using 
the National Finance Center cross servicing functions, in 
conjunction with existing DFAS and private operations in the 
area, for some financial management and personnel services at 
DOD as recommended by Military Department Comptrollers in 
January, 1994.
                  reserve component automation system
      The Army has spent eighteen years and close to a billion 
dollars without successfully providing modern computer 
technology to its Reserve Component. For the first time in the 
RCAS program's history, there now appears to be general 
consensus between the active Army, the National Guard, the Army 
Reserve, the Office of the Secretary of Defense, and the 
Congress on its future direction based on the restructure 
proposed by the Chief of the National Guard Bureau. Given this 
apparent consensus, there is no longer the need for legislation 
to accomplish the goals set out by the Congress for this 
program. The conferees therefore do not agree to retain bill 
language as proposed by the House. This action should not be 
construed as a diminution of Congressional support for RCAS, a 
Congressional authorization to change the program 
responsibilities of the Chief of the National Guard Bureau, or 
an invitation to the Army to change the program architecture to 
parallel or merge with active Army computer modernization 
programs. The funding provided in this Act is available solely 
to implement the restructured RCAS program as proposed by the 
Chief of the National Guard Bureau, endorsed by the Office of 
the Secretary of Defense in a formal Major Automated 
Information Systems Review Council, and recently presented to 
the Congress. All RCAS funds are hereby designated to be of 
special Congressional interest, any other use of which would 
require approval by the Congress through the formal 
reprogramming process; this would include the use of RCAS funds 
to modernize active Army systems or to finance codevelopment 
ofnew systems. The conferees agree to the certification requirements by 
the Assistant Secretary of Defense for Reserve Affairs in the House 
report.
      For many years, the Congress has denied the use of 
government furnished equipment and software in the RCAS system 
primarily because the Army would not identify it in advance to 
the Congress. The Chief of the National Guard Bureau has 
proposed the limited use of government furnished software in 
the restructured program. The Army has touted for many years 
the large amount of government furnished software that 
potentially could be used in RCAS. However, of the 16 existing 
Army information systems that will be examined for reuse in 
RCAS during fiscal year 1996, the Guard Bureau indicates that 
not even one is likely to have more than 14 percent of the 
software available for reuse. Many of these are also very old 
systems. The conferees wish to assure that software reuse is 
not done simply for its own sake or solely to satisfy the 
technical community. The conferees impose no restrictions on 
the use of government furnished software in the restructured 
program, but direct that the Program Executive Office for RCAS 
certify each time it tasks the RCAS contractor to use a 
significant amount of government furnished software that such 
action is the most cost-effective approach.
      Finally, for many years the Congress had a very tight 
restriction in law prohibiting the purchase of interim 
equipment outside of the RCAS program. The Reserve Components 
have recently disclosed that there are 12,000 modern computers 
which are available for the restructured program. The conferees 
direct the Inspector General of the Defense Department to 
conduct an investigation on how the Reserve Component was able 
to obtain such a large number of computers, whether any of 
these acquisitions violated law, and/or if anti-deficiency 
violations occurred.
          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
                  RECAPITULATION                                                                                
RDTE, ARMY......................................       4,444,175       4,742,150       4,639,131       4,870,684
RDTE, NAVY......................................       8,204,530       8,715,481       8,282,051       8,748,132
RDTE, AIR FORCE.................................      12,598,439      13,110,335      13,087,389      13,126,567
RDTE, DEFENSE-WIDE..............................       8,802,881       9,029,666       9,196,784       9,411,057
DEVELOPMENTAL TEST AND EVALUATION...............         259,341         259,341         246,082         251,082
OPERATIONAL TEST AND EVALUATION.................          22,587          22,587          22,587          22,587
                                                 ---------------------------------------------------------------
      GRAND TOTAL, RDTE.........................      34,331,953      35,879,560      35,474,024      36,430,109
                                                 ===============================================================
                  CATEGORY RECAP                                                                                
BASIC RESEARCH..................................         974,025         953,625         916,592         935,964
EXPLORATORY DEVELOPMENT.........................       2,722,753       2,855,416       2,836,736       2,907,381
ADVANCED DEVELOPMENT............................       3,693,547       3,318,907       3,370,626       3,624,055
DEMONSTRATION AND VALIDATION....................       2,664,245       3,018,253       2,780,156       2,983,101
ENGINEERING & MANUFACTURING DEVELOPMENT.........       8,239,924       8,602,411       8,599,378       8,579,080
RDT&E MANAGEMENT SUPPORT........................       3,119,546       3,103,818       3,112,963       3,130,779
OPERATIONAL SYSTEMS DEVELOPMENT.................      10,235,821      10,732,599      10,589,899      10,955,133
OTHER...........................................       2,682,092       3,294,531       3,267,674       3,314,616
                                                 ---------------------------------------------------------------
      TOTAL.....................................      34,331,953      35,879,560      35,474,024      36,430,109
----------------------------------------------------------------------------------------------------------------
                         special interest items
      The conferees agree with the direction in the House 
report with respect to the identification and treatment of 
Congressional interest items and further direct that these 
requirements be imposed with respect to items so identified in 
the Senate report and in this Statement of the Managers.
            Research, Development, Test and Evaluation, Army
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL, ARMY:                                                                         
    DEFENSE RESEARCH SCIENCES...................................     127,565     127,565     128,240     128,240
    UNIVERSITY AND INDUSTRY RESEARCH CENTERS....................      62,715      62,715      39,016      49,779
    SENSORS AND ELECTRONIC SURVIVABILITY........................      21,918      27,918      21,918      27,918
    AVIATION TECHNOLOGY.........................................      20,381      20,381      18,470      18,470
    MISSILE TECHNOLOGY..........................................      17,985      17,985      12,740      17,985
    MODELING AND SIMULATION.....................................      23,770      23,770      20,526      20,526
    BALLISTICS TECHNOLOGY.......................................      28,126      39,126      25,976      33,976
    ELECTRONICS AND ELECTRONIC DEVICES..........................      17,525      19,025      20,525      22,025
    HUMAN FACTORS ENGINEERING TECHNOLOGY........................      12,534      20,034      12,534      16,034
    ENVIRONMENTAL QUALITY TECHNOLOGY............................      21,304      21,304      26,704      26,704
    COMMAND, CONTROL, COMMUNICATIONS TECHNOLOGY.................      15,726      15,726      13,578      13,578
    MEDICAL TECHNOLOGY..........................................      56,658      58,658      63,311      65,311
    LOGISTICS ADVANCED TECHNOLOGY...............................      10,569      13,669       5,607       8,707
    MEDICAL ADVANCED TECHNOLOGY.................................      11,760      88,760      18,535      95,535
    AVIATION ADVANCED TECHNOLOGY................................      48,593      59,093      48,593      56,593
    WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...................      18,518      21,518      21,649      27,518
    COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY...........      30,616      31,616      23,842      28,171
    COMMAND, CONTROL, COMMUNICATIONS ADVANCED TECHNOLOGY........      16,922      16,922      28,922      28,922
    TRACTOR HIKE................................................      14,588      31,588      14,588      24,588
    GLOBAL SURVEILLANCE/AIR DEFENSE/PRECISION STRIKE TECHNOLOGY.      39,824      39,824      38,324      38,324
    MISSILE AND ROCKET ADVANCED TECHNOLOGY......................     123,913     126,413     108,913     118,913
    LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY............      18,820      18,820      24,820      24,820
    NIGHT VISION ADVANCED TECHNOLOGY............................      37,969      37,969      33,803      33,803
    ADVANCED TACTICAL COMPUTER SCIENCE AND TECHNOLOGY...........      33,989      33,989      28,952      28,952
    TRACTOR DUMP................................................      15,025      15,025  ..........  ..........
    ARMY MISSILE DEFENSE SYSTEMS INTEGRATION (DEM/VAL)..........       2,985      30,785       2,985      23,985
    ARTILLERY PROPELLANT DEVELOPMENT............................      10,946      30,546      21,646      21,946
    ARMORED SYSTEM MODERNIZATION--ADV DEV.......................     201,513     201,513     176,513     191,513
    TACTICAL ELECTRONIC SUPPORT SYSTEMS--ADV DEV................       2,937       5,937       2,937       5,937
    SOLDIER SUPPORT AND SURVIVABILITY...........................      33,848      33,848       7,913       7,913
    AVIATION--ADV DEV...........................................       8,430      14,430       8,430      14,430
    WEAPONS AND MUNITIONS--ADV DEV..............................  ..........  ..........       1,000       1,000
    COMANCHE....................................................     199,103     199,103     373,103     299,103
    ADVANCED MISSILE SYSTEM-HEAVY...............................         995         995  ..........         995
    MEDIUM TACTICAL VEHICLES....................................  ..........  ..........       1,500       1,500
    JAVELIN.....................................................  ..........       2,000  ..........       1,000
    LANDMINE WARFARE............................................      31,028      31,028      15,628      31,028
    HEAVY TACTICAL VEHICLES.....................................  ..........       2,745  ..........       2,745
    ADVANCED COMMAND AND CONTROL VEHICLE (AC2V).................      18,238      18,238      13,776      18,238
    LIGHT TACTICAL WHEELED VEHICLES.............................       2,187       4,187       7,187       4,187
    ARMORED SYSTEMS MODERNIZATION (ASM)-ENG, DEV................      38,465      43,825      40,065      40,065
    ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....................      21,831      35,984      24,431      24,431
    NON-SYSTEM TRAINING DEVICES--ENG DEV........................      55,303      55,303      50,703      52,303
    TACTICAL SURVEILLANCE SYSTEM--ENG DEV.......................  ..........       3,100       3,000       3,000
    AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE--ENG DEV......      22,030      22,030      20,830      20,830
    AUTOMATIC TEST EQUIPMENT DEVELOPMENT........................       5,437      15,437       5,437      15,437
    TRACTOR BAT.................................................     193,303     200,303     193,303     200,303
    JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM...............      18,771      18,771      28,271      28,271
    WEAPONS AND MUNITIONS--ENG DEV..............................      15,928      17,528      16,428      18,028
    NON-COOPERATIVE TARGET RECOGNITION--ENG DEV.................      30,466      30,466      14,139      22,466
    RAND ARROYO CENTER..........................................      21,872      21,872      16,872      18,872
    DOD HIGH ENERGY LASER TEST FACILITY.........................       3,000      24,808      35,000      35,000
    PROGRAMWIDE ACTIVITIES......................................      63,649      63,649      59,400      63,649
    TECHNICAL INFORMATION ACTIVITIES............................      16,401      16,401      13,837      13,837
    MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.........       6,903       6,903      18,103      18,103
    ENVIRONMENTAL COMPLIANCE....................................      66,101      66,101      68,101      68,101
    BASE OPERATIONS--RDT&E......................................     329,978     329,978     319,478     319,478
    MANAGEMENT HEADQUARTERS (RESEARCH AND DEVELOPMENT)..........       8,766       8,766      15,766      15,766
    MLRS PRODUCT IMPROVEMENT PROGRAM............................      68,786      68,786      72,586      72,586
    ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....................      39,422      39,422  ..........      36,422
    COMBAT VEHICLE IMPROVEMENT PROGRAMS.........................     197,669     198,978     202,694     215,003
    MANEUVER CONTROL SYSTEM.....................................      38,327      51,327  ..........      51,327
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............       3,012       4,112       3,012       4,112
    DIGITIZATION................................................      88,567      88,567  ..........     100,867
    MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM.............      17,069      26,869      68,869      64,869
    OTHER MISSILE PRODUCT IMPROVEMENT PROGRAMS..................      57,949      57,949      65,499      65,499
    END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.................  ..........      17,776      23,776      28,776
    TASK FORCE XXI..............................................  ..........  ..........     184,456  ..........
    TASK FORCE XXI SOLDIER......................................  ..........  ..........  ..........      30,000
----------------------------------------------------------------------------------------------------------------
                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
University and Industry Research Centers........................      62,715      62,715      39,016      49,779
    Electromechanics and hypervelocity physics..................  ..........  ..........      -1,390  ..........
    Automotive Technology.......................................  ..........  ..........  ..........      +2,000
    Federated Labs..............................................  ..........  ..........     -22,309     -14,936
Ballistics Technology...........................................      28,126      39,216      25,976      33,976
    Electric gun technology.....................................  ..........      +9,000  ..........      +7,000
    Electrothermal-chemical (ETC) tech..........................  ..........      +2,000  ..........      +1,000
    Self Protection System......................................  ..........  ..........      -2,150      -2,150
Electronics and Electronic Devices..............................      17,525      19,025      20,525      22,025
    Battery maintainer system...................................  ..........      +1,500  ..........      +1,500
    Adv nonmetallic rechargeable battery........................  ..........  ..........      +1,000      +1,000
    Low cost reusable alkaline batteries for Sincgars...........  ..........  ..........      +1,000      +1,000
    ``AA'' zinc air battery for military application............  ..........  ..........      +1,000      +1,000
Human Factors Engineering Technology............................      12,534      20,034      12,534      16,034
    Medteams....................................................  ..........      +4,000  ..........  ..........
    Rural Health................................................  ..........      +3,500  ..........      +3,500
Medical Technology..............................................      56,658      58,658      63,311      65,311
    Dengue fever................................................  ..........  ..........      +1,000      +1,000
    Nutrition Research..........................................  ..........  ..........      +1,775      +1,775
    Medteams....................................................  ..........  ..........      +3,878      +3,878
    Wound Healing...............................................  ..........      +2,000  ..........      +2,000
Logistics Advanced Technology...................................      10,569      13,669       5,607       8,707
    Soldier Survivability.......................................  ..........  ..........      -4,962      -4,962
    Ammunition logistics........................................  ..........      +3,100  ..........      +3,100
Medical Advanced Technology.....................................      11,760      88,760      18,535      95,535
    Nutrition research..........................................  ..........  ..........      +1,775      +1,775
    Tissue replacement..........................................  ..........  ..........      +5,000      +5,000
    Breast cancer...............................................  ..........     +75,000  ..........     +75,000
    Blood analyzer..............................................  ..........      +2,000  ..........      +2,000
Aviation Advanced Technology....................................      48,593      59,093      48,593      56,593
    Chinook helicopter SLEP.....................................  ..........      +4,000  ..........      +4,000
    Starstreak evaluation [Note: The conferees agree to Senate                                                  
     language regarding the Starstreak funding strategy.].......  ..........      +6,500  ..........      +4,000
Weapons and Munitions Advanced Tech.............................      18,518      21,518      21,649      27,518
    Precision guided mortar munition............................  ..........  ..........      +6,000      +6,000
    Large footprint sensor evaluation...........................  ..........  ..........      -2,869  ..........
    XM-982 [Note: The conferees direct the Army to assess the                                                   
     potential for accelerating the XM-982 program and report                                                   
     findings to the congressional defense committees no later                                                  
     than January 15, 1996.]....................................  ..........      +2,000  ..........      +2,000
    Electro-Rheological Fluid Recoil System.....................  ..........      +1,000  ..........      +1,000
Combat Vehicle and Automotive Advanced Tech.....................      30,616      31,616      23,842      28,171
    Armored vehicle self protection program [Note: The conferees                                                
     direct that the additional funds are only for the                                                          
     development of a tank system capable of close in detection                                                 
     and destruction of high velocity, low front-end radar cross-                                               
     section threats such as KE rounds.]........................  ..........      +1,000  ..........      +1,000
    Active protection concept...................................  ..........  ..........      -3,329  ..........
    Composites for future military vehicles.....................  ..........  ..........      -3,445      -3,445
Missile and Rocket Advanced Technology..........................     123,913     126,413     108,913     118,913
    EFOG-M......................................................  ..........  ..........     -15,000      -7,500
    Low cost autonomous attack submunition......................  ..........      +2,500  ..........      +2,500
Army Missile Defense Systems Integration (Dem/Val)..............       2,985      30,785       2,985      23,985
    THEL........................................................  ..........      +5,000  ..........  ..........
    Nautilus laser..............................................  ..........      +5,000  ..........  ..........
    Battlefield integration center..............................  ..........     +17,800  ..........     +21,000
Artillery Propellant Development................................      10,946      30,546      21,646      21,946
    Unicharge...................................................  ..........     +19,600     +10,700     +11,000
Armored System Modernization--Adv Dev...........................     201,513     201,513     176,513     191,513
    FARV Adv development........................................  ..........  ..........     -25,000     -10,000
Comanche [Note: The conferees do not agree to House language                                                    
 regarding testing at Patuxent River.]..........................     199,103     199,103     373,103     299,103
Non-System Training Devices--Eng Dev............................      55,303      55,303      50,703      52,303
    FSCATT phase 1..............................................  ..........  ..........      -3,000      -3,000
    STRICOM and Naval air warfare ctr training..................  ..........  ..........      -1,600  ..........
Weapons and Munitions--Eng Dev..................................      15,928      17,528      16,428      18,028
    XM 931 (120MM Practice).....................................  ..........      +1,600  ..........      +1,600
    Universal brackets for MK19 grenade launchers...............  ..........  ..........        +500        +500
Non-Cooperative Target Recognition--Eng Dev.....................      30,466      30,466      14,139      22,466
    Low cost BCIS study.........................................  ..........  ..........      -1,091  ..........
    BCIS hardware build.........................................  ..........  ..........     -15,236      -8,000
Base operations--RDT&E [Note: The conferees direct that no part                                                 
 of the reduction may be assessed against personnel.]...........     329,978     329,978     319,478     319,478
Combat Vehicle Improvement Program..............................     197,669     198,978     202,694     215,003
    Abrams Improvement system enhancement package...............  ..........  ..........      -5,000  ..........
    Abrams Improvement GEN II FLIR/testing......................  ..........  ..........      -5,000      -5,000
    Tractor Dump................................................  ..........  ..........     +15,025     +15,025
    Abrams transfer.............................................  ..........      +1,309  ..........      +1,309
    Test equipment..............................................  ..........  ..........  ..........      +6,000
Digitization....................................................      88,567      88,567  ..........     100,867
    EXFOR modernization.........................................  ..........  ..........      +4,000      +4,000
    AWE--Warrior Focus..........................................  ..........  ..........        +500        +500
    AWE--JWID...................................................  ..........  ..........      +1,500      +1,500
    ASAS connectivity for TF XXI................................  ..........  ..........      +3,300      +3,300
    TF XXI radios and displays..................................  ..........  ..........      +5,000      +5,000
    Prior year carryover........................................  ..........  ..........      -2,000      -2,000
Missile/Air Defense Product Improvement.........................      17,069      26,869      68,869      64,869
    Stinger Block II............................................  ..........      +9,800      +9,800      +9,800
    Avenger PIP.................................................  ..........  ..........      +3,000      +3,000
    Starstreak evaluation.......................................  ..........  ..........      +4,000  ..........
    Patriot anti-cruise missile upgrade.........................  ..........  ..........     +35,000     +35,000
Other Missile Product Improvement Programs......................      57,949      57,949      65,499      65,499
    Hydra-70 PIP [Note: The conferees direct increase is only                                                   
     for a competitive product improvement program for the Hydra-                                               
     70 rocket.]................................................  ..........  ..........     +10,000     +10,000
    Support and Management costs................................  ..........  ..........      -2,450      -2,450
Industrial Preparedness Activities..............................  ..........      17,776      23,776      28,776
    Transfer....................................................  ..........     +17,776     +17,776     +17,776
    PAN fibers..................................................  ..........  ..........      +4,000      +4,000
    Non-metallic rechargeable battery...........................  ..........  ..........      +2,000      +2,000
    Instrumented Factory for Gears (INFAC)......................  ..........  ..........  ..........      +5,000
----------------------------------------------------------------------------------------------------------------
                university and industry research centers
      The conferees have provided $49,779,000. Included in this 
amount is $22,847,000 for the Army's new federated labs 
program. The conferees direct that these funds may only be used 
to initiate the three federated lab programs which the Army 
determines are most important to its needs.
      The conferees are concerned that the Army's plan to enter 
into long term agreements could limit its ability to respond to 
new ideas and changes in the defense industry. Therefore, the 
conferees direct that the Army shall not enter into any 
federated lab agreement or contract which provides for the non-
competitive continuation of a federated lab for more than five 
years. The conferees further direct that the Assistant 
Secretary of the Army for Research, Development and Acquisition 
provide a report identifying the three fiscal year 1996 
federated labs, the participants, the allocation of funds, the 
management structure, and the planned research program by March 
1, 1996 to the congressional defense committees.
                             ew development
      The conferees understand that funds are included in the 
budget request for the development of an electronic protection 
system and encourage the Army to obligate up to $10,300,000 in 
fiscal year 1996 for the SHORTSTOP project.
                      medical advanced technology
      The conferees agree to provide $75,000,000 for the Army's 
peer reviewed breast cancer research program. The conferees 
expect the Army to provide special emphasis to research that 
addresses the specific needs of military beneficiaries.
             air defense command, control and intelligence
      The conferees provided $2,000,000 in fiscal year 1995 for 
the evaluation of the Air Defense Alerting Device (ADAD). The 
conferees direct the Department of Defense to release the 
fiscal year 1995 funds appropriated for ADAD and proceed with 
testing.
                         task force xxi soldier
      The conferees agree to provide $30,000,000 for a new 
project, Task Force XXI Soldier, to accelerate the development 
of integrated, modular equipment designed for the individual 
soldier. The Army's strategy to develop and field the interim 
Land Warrior system and then immediately begin production of 
the objective GENII Soldier system appears to be an inefficient 
allocation of resources. The conferees believe that accelerating the 
GEN II soldier program will eliminate the need for an interim system 
allowing the Army to field a more capable system at an earlier date. 
Therefore, the conferees have consolidated funds from the existing 
programs to accelerate the GEN II Soldier program and provided 
additional funds to continue only the Land Warrior efforts necessary to 
support the objective program. The conferees direct the Assistant 
Secretary of the Army for Research, Development and Acquisition to 
provide a report defining a revised acquisition strategy to the 
congressional defense committees by March 1, 1996.
                      airborne reconnaissance low
      The conferees understand that upgrading the Airborne 
Reconnaissance Low (ARL) aircraft with the RAH-66 Comanche 
engine will significantly enhance operational capabilities and 
reduce support costs. Although no funds were requested in the 
fiscal year 1996 budget, the conferees encourage the Army to 
pursue upgrading the ARL engine in fiscal year 1997.
            Research, Development, Test and Evaluation, Navy
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL NAVY:                                                                          
    DEFENSE RESEARCH SCIENCES...............................      385,917      385,917      373,917      373,917
    SURFACE/AEROSPACE SURVEILLANCE AND WEAPONS TECHNOLOGY...       32,658       36,658       30,658       34,658
    SURFACE SHIP TECHNOLOGY.................................       36,786       46,786       37,860       62,860
    AIRCRAFT TECHNOLOGY.....................................       22,238       24,738       28,238       30,738
    READINESS, TRAINING, AND ENVIRONMENTAL QUALITY                                                              
     TECHNOLOGY.............................................       40,511       45,311       42,511       49,211
    MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY..........       74,849       77,849       71,849       78,349
    UNDERSEA SURVEILLANCE WEAPON TECHNOLOGY.................       51,182       51,182       56,982       56,982
    MINE COUNTERMEASURES, MINING AND SPECIAL WARFARE........       43,384       51,384       43,384       48,384
    OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY................       45,526       60,526       49,476       58,376
    AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY.............       17,082       71,082       26,082       71,082
    MEDICAL DEVELOPMENT.....................................       27,754       62,754       27,754       65,754
    ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOGY.       21,504       33,504       25,004       25,004
    UNDERSEA WARFARE ADVANCED TECHNOLOGY....................       51,816       51,816       45,170       48,493
    SHALLOW WATER MCM DEMOS.................................       50,958       25,000       46,565       40,958
    ADVANCED TECHNOLOGY TRANSITION..........................       96,825       78,000       89,325       81,000
    AIR/OCEAN TACTICAL APPLICATIONS.........................       16,621       19,821       16,621       19,821
    AVIATION SURVIVABILITY..................................        7,477       16,377        7,477       16,377
    SURFACE AND SHALLOW WATER MINE COUNTERMEASURES..........       54,527       56,177       54,527       56,177
    ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT...........       21,281       28,181       21,281       28,181
    CARRIER SYSTEMS DEVELOPMENT.............................       16,164       16,164        9,226       12,764
    NON-ACOUSTIC ANTI SUBMARINE WARFARE (ASW)...............  ...........  ...........       10,000       10,000
    ADVANCED SUBMARINE SYSTEM DEVELOPMENT...................       35,748       55,748       35,748       55,748
    SUBMARINE TACTICAL WARFARE SYSTEMS......................        5,070        8,570        5,070        8,570
    SHIP CONCEPT ADVANCED DESIGN............................       16,736       53,736       16,736       53,736
    ADVANCED SURFACE MACHINERY SYSTEMS......................       39,156       39,156       67,094       82,864
    MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM...............       46,733       46,733       46,733       50,933
    RETRACT MAPLE...........................................       82,932       90,932       82,932       87,932
    LINK PLUMERIA...........................................       17,879       21,579       17,879       21,579
    RETRACT ELM.............................................       32,561       32,561       31,561       31,561
    SHIP SELF DEFENSE.......................................      245,620      365,120      245,620      332,620
    GUN WEAPON SYSTEM TECHNOLOGY............................       12,028       37,028       31,028       34,028
    JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...............      149,295      143,795      123,272       83,795
    ASW AND OTHER HELO DEVELOPMENT..........................       91,803       80,175       99,636       89,636
    AV-8B AIRCRAFT--ENG DEV.................................       11,309       26,909       11,309       26,909
    S-3 WEAPON SYSTEM IMPROVEMENT...........................       12,872       27,872       12,872       12,872
    P-3 MODERNIZATION PROGRAM...............................        1,945       16,945        1,945       16,945
    TACTICAL COMMAND SYSTEM.................................       27,389       27,389       24,750       24,750
    V-22A...................................................      762,548      762,548      757,548      757,548
    AIR CREW SYSTEMS DEVELOPMENT............................        9,788       17,688        9,788       17,688
    EW DEVELOPMENT..........................................       87,440       87,440       97,440       97,440
    AEGIS COMBAT SYSTEM ENGINEERING.........................      105,683       89,883       94,683       94,683
    STANDARD MISSILE IMPROVEMENTS...........................        8,572        2,572       18,572       18,572
    AIRBORNE MCM............................................       42,226       42,226       30,468       34,468
    ENHANCED MODULAR SIGNAL PROCESSOR.......................        8,342       14,842        8,342       14,842
    SUBMARINE COMBAT SYSTEM.................................       43,302       37,151       43,302       43,302
    SUBMARINE TACTICAL WARFARE SYSTEM.......................       38,479       20,487       38,479       38,479
    NAVY TACTICAL COMPUTER RESOURCES........................        5,499       15,499        5,499       15,499
    UNGUIDED CONVENTIONAL AIR-LAUNCHED WEAPONS..............       40,517       43,517       94,517       53,517
    SHIP SELF DEFENSE.......................................      165,997      201,997      179,297      207,297
    NAVIGATION/ID SYSTEM....................................       56,472       56,472       51,104       54,104
    DISTRIBUTED SURVEILLANCE SYSTEM.........................       93,507       93,507       93,507      103,507
    STUDIES AND ANALYSIS SUPPORT--NAVY......................        9,281        7,000        7,781        7,000
    MANAGEMENT, TECHNICAL & INTERNATIONAL SUPPORT...........       20,371       12,000       18,422       18,422
    STRATEGIC TECHNICAL SUPPORT.............................        3,584        3,000        3,584        3,000
    TEST AND EVALUATION SUPPORT.............................      245,911      247,911      237,911      239,911
    STRATEGIC SUB & WEAPONS SYSTEM SUPPORT..................       39,511       39,511       36,609       36,609
    F/A-18 SQUADRONS........................................      919,484      923,984      919,484      923,984
    E-2 SQUADRONS...........................................       52,965       52,965       52,965       62,965
    TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)....      141,440      176,440      141,440      170,440
    INTEGRATED SURVEILLANCE SYSTEM..........................       16,440       32,640       16,440       32,640
    CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT...............       48,058       51,058       65,058       68,058
    F-14 UPGRADE............................................       44,490       44,490       44,490       19,115
    MARINE CORPS COMBAT SERVICES SUPPORT....................        3,915        6,915        3,915        7,415
    SATELLITE COMMUNICATIONS................................       38,472       38,472       43,472       38,472
    INDUSTRIAL PREPAREDNESS.................................  ...........       88,000       41,251       88,000
    CLASSIFIED PROGRAMS.....................................      539,680      579,680      545,480      585,480
    GENERAL REDUCTION, UNIVERSITY LABS......................  ...........      -10,000  ...........      -10,000
    FREE ELECTRON LASER PROGRAM.............................  ...........        9,000  ...........        9,000
----------------------------------------------------------------------------------------------------------------
                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                  Budget       House       Senate     Conference
----------------------------------------------------------------------------------------------------------------
Surface/Aerospace Surveillance and Weapons Technology.........      32,658      36,658      30,658       34,658 
    Long Range Projectile.....................................  ..........      +2,000  ...........      +2,000 
    IPHTET/Rocket Propulsion..................................  ..........      +2,000  ...........      +2,000 
    Theater Defense...........................................  ..........  ..........      -2,000       -2,000 
Surface Ship Technology.......................................      36,786      46,786      37,860       62,860 
    Submarine Technology......................................  ..........     +10,000  ...........     +10,000 
    Submarine Signature Control/ Structural Systems/ Power and                                                  
     Automation/ and Maneuvering and Seakeeping...............  ..........  ..........      -4,926       -4,926 
    Power Electronic Building Blocks..........................  ..........  ..........      +6,000       +6,000 
    Curved Plate Technology...................................  ..........  ..........  ...........     +15,000 
    ITEM for Embedded Test Procedures.........................  ..........  ..........      (1,000)      (1,000)
    ITEM for Prototype Advanced Maintenance...................  ..........  ..........      (1,000)      (1,000)
Aircraft Technology...........................................      22,238      24,738      28,238       30,738 
    Helmet mounted displays...................................  ..........      +2,500  ...........      +2,500 
    Vectored thrust ducted propeller technology...............  ..........  ..........      +6,000       +6,000 
Readiness, Training, and Environmental Quality Technology.....      40,511      45,311      42,511       49,211 
    Aircrew chemical-biological protection....................  ..........      +4,800  ...........      +4,800 
    MERTS.....................................................  ..........  ..........      +2,000       +3,900 
Materials, Electronics, and Computer Technology...............      74,849      77,849      71,849       78,349 
    Embedded sensors..........................................  ..........      +3,000  ...........      +3,000 
    C-band telemetry/data link systems........................  ..........  ..........      -3,000       -3,000 
    Distributed Manufacturing Demonstration Project...........  ..........  ..........  ...........      +3,500 
Mine Countermeasures, Mining and Special Warfare..............      43,384      51,384      43,384       48,384 
    RAMICS....................................................  ..........      +8,000  ...........      +5,000 
Oceanographic and Atmospheric Technology......................      45,526      60,526      49,476       58,376 
    Oceanographic research....................................  ..........     +10,000  ...........     +10,100 
    Mapping, charting, geodesy................................  ..........  ..........      +3,700           +0 
    PM-10.....................................................  ..........  ..........        +250         +250 
    POAM-II...................................................  ..........      +5,000  ...........      +2,500 
Medical Development...........................................      27,754      62,754      27,754       65,754 
    Bone marrow...............................................  ..........     +24,000  ...........     +24,000 
    Prostate cancer [Note: The conferees direct that the                                                        
     prostate cancer funds are to continue the ongoing Army                                                     
     research program, in collaboration with the Navy.].......  ..........      +7,500  ...........      +7,500 
    DOD head injury...........................................  ..........      +1,000  ...........      +1,000 
    Blood storage.............................................  ..........      +1,000  ...........      +1,000 
    Naval Biodynamics Laboratory [Note: The conferees agree to                                                  
     provide $3,000,000 only for the Naval Biodynamics                                                          
     Laboratory (NBDL). These funds are to maintain the level                                                   
     of effort at NBDL so that the lab, facilities, equipment,                                                  
     and records (including data bases) can be transferred,                                                     
     effective October, 1996, to a participating facility                                                       
     which is an integral part of the Gulf Coast Region                                                         
     Maritime Technology Center.].............................  ..........      +1,500  ...........      +3,000 
Undersea Warfare Advanced Technology..........................      51,816      51,816      45,170       48,493 
    Shallow water surveillance advanced technology--littoral                                                    
     warfare advanced development.............................  ..........  ..........      -6,646       -3,323 
Shallow Water MCM Demonstrations..............................      50,958      25,000      46,565       40,958 
    Budget growth.............................................  ..........     -25,958  ...........     -10,000 
    Advanced airborne target designator.......................  ..........  ..........      -1,400   ...........
    C\4\I technology..........................................  ..........  ..........      -1,468   ...........
    Surface surveillance, target acquisition and fire control.  ..........  ..........      -1,525   ...........
Advanced Technology Transition................................      96,825      78,000      89,325       81,000 
    Budget growth.............................................  ..........     -18,825  ...........     -18,825 
    Tactical aircraft directed IR countermeasures.............  ..........  ..........      -5,500   ...........
    Dual mission advanced missile airframe....................  ..........  ..........      -5,000   ...........
    SLICE.....................................................  ..........  ..........      +3,000       +3,000 
Carrier Systems Development...................................      16,164      16,164       9,226       12,764 
    Zonal electric distribution system........................  ..........  ..........      -2,000   ...........
    Aviation weapons information systems......................  ..........  ..........      -1,538   ...........
    Multi-threat magazine protection system...................  ..........  ..........      -1,700       -1,700 
    Integrated catapult/ski-jump..............................  ..........  ..........      -1,700       -1,700 
Advanced Surface Machinery Systems............................      39,156      39,156      67,094       82,864 
    ICR.......................................................  ..........  ..........     +27,938      +41,008 
    ICR statutory allocation..................................  ..........  ..........     (45,458)          (0)
    Standard monitoring control system [Note: Conferees agree                                                   
     to provide an additional $2.7 million, a total of $6.2                                                     
     million, for the standard monitoring control system.]....  ..........  ..........  ...........      +2,700 
Marine Corps Ground Combat/Support System.....................      46,733      46,733      46,733       50,933 
    Light weight 155mm howitzer...............................  ..........  ..........  ...........      +4,200 
Ship Self Defense.............................................     245,620     365,120     245,620      332,620 
    NRL P-3...................................................  ..........     +26,500  ...........     +26,500 
    Fleet P-3.................................................  ..........     +11,500  ...........     +11,500 
    E-2 CEC...................................................  ..........      +8,000  ...........      +5,500 
    Patriot/THAAD/CORPSAM CEC.................................  ..........     +20,000  ...........      +5,000 
    Hawk CEC..................................................  ..........     +15,000  ...........      +3,000 
    AWACS CEC.................................................  ..........     +10,000  ...........     +11,000 
    National sensors CEC......................................  ..........      +4,000  ...........      +4,000 
    FACT high definition systems..............................  ..........      +4,500  ...........      +4,500 
    Multisensor fusion (St. Inigoes)..........................  ..........      +4,000  ...........  ...........
    AN/UYQ-70.................................................  ..........     +16,000  ...........     +16,000 
Gun Weapon System Technology..................................      12,028      37,028      31,028       34,028 
    Naval surface fire support................................  ..........     +25,000     +19,000      +22,000 
Joint Advanced Strike Technology--Dem/Val.....................     149,295     143,795     123,272       83,795 
    General reduction.........................................  ..........     -25,500     -51,023      -65,500 
    Engine competition........................................  ..........     +20,000  ...........  ...........
    A/F-117X [Note: Conferees direct that no reduction be made                                                  
     to the $7 million budgeted and appropriated for alternate                                                  
     engine activities.]......................................  ..........  ..........     +25,000   ...........
ASW and Other Helicopter Development..........................      91,803      80,175      99,636       89,636 
    AH-1W.....................................................  ..........     -11,628     -11,628      -11,628 
    ALFS......................................................  ..........  ..........      -2,167       -2,167 
    4BW/4BH...................................................  ..........  ..........     +21,628      +11,628 
AV-8B.........................................................      11,309      26,909      11,309       26,909 
    Engineering and manufacturing development.................  ..........     +15,600  ...........     +15,600 
S-3 Weapon System Improvement.................................      12,872      27,872      12,872       12,872 
    Gray Wolf.................................................  ..........     +15,000  ...........  ...........
P-3 Modernization Program.....................................       1,945      16,945       1,945       16,945 
    AIP.......................................................  ..........     +12,000  ...........     +12,000 
    Stores management.........................................  ..........      +3,000  ...........      +3,000 
Airborne Mine Countermeasures.................................      42,226      42,226      30,468       34,468 
    Airborne laser mine detection system [Note: $18,262,000 is                                                  
     available only for Magic Lantern.].......................  ..........  ..........     -11,758       -7,758 
Unguided Conventional Air Launched Weapons....................      40,517      43,517      94,517       53,517 
    SLAM-ER...................................................  ..........      +3,000  ...........      +3,000 
    SLAM on Air Force platforms...............................  ..........  ..........     +54,000      +10,000 
Ship Self-Defense.............................................     165,997     201,997     179,297      207,297 
    Test ship.................................................  ..........      +7,900  ...........      +7,900 
    QRCC......................................................  ..........      +2,500  ...........      +2,500 
    ESM.......................................................  ..........      +4,500  ...........      +4,500 
    IRST......................................................  ..........      +9,500      +9,500       +9,500 
    SPQ-9.....................................................  ..........      +4,800  ...........      +4,800 
    ESSM......................................................  ..........      +6,800      -8,200   ...........
    Multi-sensor integration..................................  ..........  ..........      +4,000       +4,100 
    NULKA.....................................................  ..........  ..........      +8,000       +8,000 
Distributed Surveillance System...............................      93,507      93,507      93,507      103,507 
    FDS--Deployable [Note: Conferees agree to provide $10                                                       
     million for refurbishment of an existing FDS-D and for                                                     
     procurement of additional spare clusters.]...............  ..........  ..........  ...........     +10,000 
Studies and Analysis Support--Navy............................       9,281       7,000       7,781        7,000 
    Growth....................................................  ..........      -2,281  ...........        -781 
    CVLA......................................................  ..........  ..........      -1,500       -1,500 
Test and Evaluation Support...................................     245,911     247,911     237,911      239,911 
    NDI safety/survivability..................................  ..........      +2,000  ...........      +2,000 
    Program reduction [Note: Conferees direct that no part of                                                   
     the general reduction shall be assessed against                                                            
     personnel.]..............................................  ..........  ..........      -8,000       -8,000 
F/A-18 Squadrons..............................................     919,484     923,984     919,484      923,984 
    BOL chaff [Note: $4.5 million is only to integrate BOL                                                      
     chaff on F/A-18C/D series aircraft.......................  ..........      +4,500  ...........      +4,500 
E-2 Squadrons.................................................      52,965      52,965      52,965       62,965 
    E-2 Radar Modernization Program...........................  ..........  ..........  ...........     +10,000 
Tomahawk and Tomahawk Mission Planning Center.................     141,440     176,440     141,440      170,440 
    Tomahawk Block IV.........................................  ..........     +25,000  ...........     +25,000 
    Joint targeting testbed [Note: $4 million for testbed is                                                    
     only for studies.].......................................  ..........     +10,000  ...........      +4,000 
Consolidated Training Systems Development.....................     +48,058     +51,058     +65,058      +68,058 
    Outboard trainer..........................................  ..........      +3,000  ...........      +3,000 
    PMRF shallow water range..................................  ..........  ..........     +17,000      +17,000 
F-14 Upgrade..................................................      44,490      44,490      44,490       19,115 
    JDAM integration..........................................  ..........  ..........  ...........     -25,375 
Marine Corps Combat Services Support..........................       3,915       6,915       3,915        7,415 
    All terrain vehicle.......................................  ..........      +3,000  ...........  ...........
    Medium tactical vehicle replacement [Note: Conferees                                                        
     direct that funds for the medium tactical vehicle                                                          
     replacement may only be used for the cargo variant.].....  ..........  ..........  ...........      +3,500 
Satellite Communications......................................      38,472      38,472      43,472       38,472 
    Commercial direct broadcast [Note: Conferees do not agree                                                   
     to the Senate language on the global broadcast service.].  ..........  ..........      +5,000   ...........
Industrial Preparedness.......................................  ..........      88,000      41,251       88,000 
    Transfer..................................................  ..........     +41,251     +41,251      +41,251 
    Generic increase..........................................  ..........     +36,749  ...........     +36,749 
    Electro-optics [Note: The conference agreement includes                                                     
     $10 million to continue a multi-year effort in                                                             
     partnership with U.S. manufacturers to develop advanced                                                    
     electro-optic manufacturing technologies aimed at                                                          
     developing lower cost and technologically superior U.S.                                                    
     weaponry. This program was authorized in the 1996 House                                                    
     National Defense Authorization bill.]....................  ..........     +10,000  ...........     +10,000 
----------------------------------------------------------------------------------------------------------------
                           ship self-defense
      The conferees do not agree to the House bill language on 
ship self-defense programs, as there is now agreement between 
the Congress and the Defense Department on the direction of the 
affected programs. This action should not be construed as a 
diminution of Congressional support for achieving robust self-
defense capabilities on Navy ships, particularly on the LPD-17 
class, as soon as possible.
                        surface ship technology
      The conferees believe recent efforts to develop state-of-
the-art curved plate technology for constructing large double 
hull tankers hold promise to significantly reduce construction 
costs and provide an improved level of safety and performance 
for Navy tanker vessels. The conference agreement includes 
$15,000,000 only to complete the development, design, 
construction and testing of full scale prototype equipment 
essential to evaluating and deploying this technology. Funds 
are to be used for detailed design and construction of full 
scale prototype equipment for curved plate panel forming, 
coating, subassembly and final welding.
                oceanographic and atmospheric technology
      The conferees agree to provide $10,000,000 for 
oceanographic research as recommended by the House. These funds 
are available only for collaborative research for the continued 
development, integration and application of cost-effective 
underwater multisensing systems (physical, chemical, optical, 
and acoustic) and unmanned underwater vehicles for continental 
shelf oceanographic measurements for mine countermeasures and 
other oceanographic applications, both fundamental and applied. 
These funds are to continue the project explained in House 
report 103-254, whose focus is on in-situ oceanographic 
sensors, fusion of multiple sensors, reconfigurability, 
interoperability to achieve low cost, reduced size and flexible 
payload/platform systems, adaptive capabilities for extended 
deployments, and navigation by self-convergent approaches using 
onboard sensors and intelligent control.
                    joint advanced strike technology
      Due to a recent restructure of the JAST program, there is 
now $131,000,000 in the fiscal year 1996 budget that is for 
work to be accomplished in fiscal year 1997. Such work should 
be budgeted in that year. The conferees agree to this reduction 
in the Navy andAir Force accounts, and direct that the Office 
of the Secretary of Defense ensure that the fiscal year 1997 budget to 
Congress includes a restoration of these funds.
                            f/a-18 squadrons
      The conferees agree to provide an additional $4,500,000 
only for BOL chaff as recommended by the House. These funds are 
only to complete certification of the BOL chaff system on the 
F/A-18C/D series aircraft.
                             e-2 squadrons
      The conferees have provided an increase of $10,000,000 
only to support evaluation of technologies for an E-2 radar 
modernization program (RMP). The conferees support an expansion 
of current development and test efforts at a site which permits 
elevated testing of an ADS-18S antenna and is involved with 
evaluation of space time adaptive processing (STAP) algorithms. 
Based on analysis and testing completed to date, the Navy has 
concluded that upgrades to the E-2 can provide substantial 
warfighting improvements in a littoral environment. The 
conferees direct that the additional funds shall only be 
available for radar development work, antenna testing and site 
enhancements in conjunction with ongoing efforts.
                  lcac service life extension program
      The conferees agree to provide $37,000,000 as recommended 
by the House for advanced planning and engineering of a Landing 
Craft Air Cushion (LCAC) service life extension program. The 
program will include component improvements and structural 
modifications to reduce maintenance costs, meet increased lift 
requirements, and restore growth margins. Modifications will be 
incorporated into the last craft during production and into 
existing fleet craft beginning in fiscal year 1996 as an 
expansion of the current corrosion control effort.
              intercooled recuperative gas turbine engine
      The conferees agree to provide $41,008,000 for the 
continued development of the Intercooled Recuperative (ICR) gas 
turbine engine. This includes the amount requested in the 
budget and additional funds for the recuperator recovery plan 
and the U.S. test site.
                        navy range support ship
      In the process of restructuring its fleet of 
oceanographic research vessels, the Navy recently decided that 
the Kaimalino would not be part of the future Navy 
oceanographic fleet. The conferees are aware of a plan for the 
Pacific Missile Range Facility (PMRF) to acquire the Kaimalino 
to support operational training needs as well as research and 
development programs, such as Navy Upper and Lower Tier 
Patriot, and THAAD. The conferees believe this would be an 
effective use of the Kaimalino. The conferees direct the Navy 
to review PMRF's request and to report to the Committees on 
Appropriations prior to taking any other action on the ship. 
The conferees further direct that the reuse of the Kaimalino 
shall have no effect on other ships in the Navy's oceanographic 
fleet.
         Research, Development, Test and Evaluation, Air Force
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL AF:                                                                            
    DEFENSE RESEARCH SCIENCES...................................     239,893     254,393     230,478     239,978
    MATERIALS...................................................      74,534      71,000      74,534      74,534
    AEROSPACE FLIGHT DYNAMICS...................................      66,268      62,768      60,799      63,100
    HUMAN SYSTEMS TECHNOLOGY....................................      90,311      86,911      75,311      86,911
    AEROSPACE PROPULSION........................................      78,592      81,592      72,070      75,070
    AEROSPACE AVIONICS..........................................      74,256      74,256      66,601      68,500
    HYPERSONIC TECHNOLOGY PROGRAM...............................      19,900      19,900      16,900      19,900
    ADVANCED WEAPONS............................................     124,446     130,446     130,746     136,746
    COMMAND CONTROL AND COMMUNICATIONS..........................      98,477      96,477      98,477      96,477
    ADVANCED MATERIALS FOR WEAPON SYSTEMS.......................      23,283      25,283      28,283      30,283
    CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY............      18,953      21,953      18,953      21,953
    ADVANCED AVIONICS INTEGRATION...............................      20,421      17,621      20,421      17,621
    EW TECHNOLOGY...............................................      25,079      20,079      25,079      22,579
    SPACE AND MISSILE ROCKET PROPULSION.........................      15,203      20,203      15,203      20,203
    BALLISTIC MISSILE TECHNOLOGY................................       3,085       8,785       8,085       8,785
    ADVANCED SPACECRAFT TECHNOLOGY..............................      32,627      83,627      52,627      78,627
    CONVENTIONAL WEAPONS TECHNOLOGY.............................      31,637      34,137      31,637      34,137
    ADVANCED RADIATION TECHNOLOGY...............................      47,919      47,919      74,919      74,919
    CIVIL AND ENVIRONMENTAL ENGINEERING TECHNOLOGY..............       9,835       7,835       9,835       8,835
    ADVANCED COMPUTING TECHNOLOGY...............................      11,005      36,605      11,005      36,605
    POLAR SATCOM................................................  ..........  ..........      68,331      58,000
    NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SATE......      23,861      18,861      13,861      18,861
    SPACE BASED INFRARED ARCHITECTURE (SBIR)--DEM/VAL...........     130,744     230,744     265,744     265,744
    JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...................     151,186     125,686      85,258      85,686
    INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.................      20,265      20,265      31,765      31,765
    B-1B........................................................     173,838     197,438     187,438     202,438
    C-17 PROGRAM................................................      85,753      85,753      42,353      73,803
    F-22 EMD....................................................   2,138,718   2,338,718   2,338,718   2,238,718
    NIGHT/PRECISION ATTACK......................................       8,708       8,708      20,708      20,708
    SPACE BASED INFRARED ARCHITECTURE (SBIR)--EMD...............     152,219     152,219     162,119     172,219
    MILSTAR LDR/MDR SATELLITE COMMUNICATIONS....................     649,666     649,666     591,666     577,666
    JOINT STANDOFF WEAPONS SYSTEMS..............................      44,025      44,025      40,802      44,025
    COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)..............       2,166       2,166      20,366       9,166
    JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM (JSTARS)......     169,702     189,702     162,202     182,202
    SPACE TEST PROGRAM..........................................      57,710      57,710      39,572      47,000
    THREAT SIMULATOR DEVELOPMENT................................      53,377      53,377      65,877      58,877
    NAVIGATION/RADAR/SLED TRACK TEST SUPPORT....................  ..........       3,000  ..........       3,000
    TEST AND EVALUATION SUPPORT.................................     454,067     444,167     430,167     434,167
    ENVIRONMENTAL CONSERVATION..................................      14,169       4,169      14,169       4,169
    ROCKET SYSTEMS LAUNCH PROGRAM (RSLP)........................       5,949       5,949      22,749      22,749
    BASE OPERATIONS--RDT&E......................................     117,083     120,683     126,983     123,983
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............     103,700     101,730     135,200     133,230
    B-52 SQUADRONS..............................................      16,505      16,505      25,505      21,005
    F-16 SQUADRONS..............................................     175,600     175,600     177,600     175,600
    F-15E SQUADRONS.............................................     171,337     171,337     169,237     171,337
    MANNED DESTRUCTIVE SUPPRESSION..............................       2,908       2,908      10,908      10,908
    JASSM.......................................................  ..........  ..........      50,000      25,000
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)...........      42,311      50,311      37,211      47,311
    THEATER BATTLE MANAGEMENT (TBM) C\4\I.......................      24,813      29,813      24,813      29,813
    ADVANCED SYSTEMS IMPROVEMENTS...............................     105,548     105,548     105,548      63,748
    THEATER MISSILE DEFENSES....................................      25,102      25,102      53,102      25,102
    SATELLITE CONTROL NETWORK...................................      89,717      82,717      84,617      84,617
    TITAN SPACE LAUNCH VEHICLES.................................     140,514     140,514     135,514     135,514
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE AND CONTROL S).....      26,921      26,921      25,921      25,921
    NCMC--TW/AA SYSTEM..........................................      60,897      60,897      68,797      68,797
    SPACETRACK..................................................      35,583      35,583      57,883      58,383
    DEFENSE SUPPORT PROGRAM.....................................      43,672      43,672      37,441      37,441
    NUDET DETECTION SYSTEM......................................      16,227      13,277      16,277      13,277
    INDUSTRIAL PREPAREDNESS.....................................  ..........      53,332      60,932      60,932
    CLASSIFIED PROGRAMS.........................................   3,203,479   3,310,979   3,249,279   3,339,129
----------------------------------------------------------------------------------------------------------------
                Explanation of Project Level Adjustments
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................................     239,893     254,393     230,478     239,978
    Center for Astronomical Adaptive Optics.....................  ..........      +5,000      +5,000      +5,000
    Joint Seismic Research......................................  ..........      +9,500  ..........      +9,500
    Program Reduction...........................................  ..........  ..........     -14,415     -14,415
Aerospace Flight Dynamics.......................................      66,268      62,768      60,799      63,100
    Aeromechanics...............................................  ..........  ..........      -5,469      -3,168
Aerospace Propulsion............................................      78,592      81,592      72,070      75,070
    Thermally Stable Jet Fuels..................................  ..........      +3,000  ..........      +3,000
    Program Reduction...........................................  ..........  ..........      -6,522      -6,522
Advanced Weapons................................................     124,446     130,446     130,746     136,746
    Rocket Propulsion Technology................................  ..........      +6,000  ..........      +6,000
    High Frequency Active Auroral Research......................  ..........  ..........      +5,000      +5,000
    AEOS Spectrograph...........................................  ..........  ..........      +1,300      +1,300
Advanced Materials for Weapon Systems...........................      22,283      25,283      28,283      30,283
    Infrared Signature Control..................................  ..........      +2,000  ..........      +2,000
    Metal Fatigue Monitoring Technology.........................  ..........  ..........      +5,000      +5,000
Advanced Spacecraft Technology..................................      32,627      83,627      52,627      78,627
    Reusable Launch Vehicle Technology..........................  ..........     +50,000  ..........     +25,000
    Miniature Threat Reporting System...........................  ..........      +1,000  ..........      +1,000
    Microsat....................................................  ..........  ..........     +20,000     +20,000
B-1B............................................................     173,838     197,438     187,438     202,438
    JDAM Integration............................................  ..........      +7,000      +7,000      +7,000
    ECM Risk Reduction..........................................  ..........      +6,600      +6,600      +6,600
    PGM.........................................................  ..........     +10,000  ..........     +15,000
SBIR-EMD........................................................     152,219     152,219     162,119     172,219
    Other Procurement Transfer..................................  ..........  ..........      +9,900     +20,000
Computer Resource Tech Transition...............................       2,166       2,166      20,366       9,166
    Software Design for Reliability and Reuse...................  ..........  ..........      +3,000      +5,000
    CARDS.......................................................  ..........  ..........  ..........      +2,000
    IMDS........................................................  ..........  ..........     +15,200  ..........
Joint Surveillance/Target Attack Radar..........................     169,702     189,702     162,202     182,202
    REA.........................................................  ..........  ..........     -12,000     -12,000
    NATO JSTARS Project Office..................................  ..........  ..........      +4,500      +4,500
    Data Link/Dissemination Technologies........................  ..........     +20,000  ..........     +20,000
Aircraft Engine Component Improvement Program...................     103,700     101,730     135,200     133,200
    B-2.........................................................  ..........      -1,970  ..........      -1,970
    RC-135 Re-engining NRE......................................  ..........  ..........     +31,500     +31,500
Threat Simulator Development....................................      53,377      53,377      65,877      58,877
    ECIT Infrastructure.........................................  ..........  ..........      -3,100      -3,100
    REDCAP......................................................  ..........  ..........     +15,600      +8,600
Test and Evaluation Support.....................................     454,067     444,167     430,167     434,167
    AF T&E Transfer.............................................  ..........      -9,900      -9,900      -9,900
    Program Reduction [Note: The conferees direct that no part                                                  
     of the reduction may be assessed against personnel.].......  ..........  ..........     -14,000     -10,000
Base Operations--RDT&E..........................................     117,083     120,683     126,983     123,983
    Test and Evaluation Transfer................................  ..........      +9,900      +9,900      +9,900
    Growth Reduction............................................  ..........      -6,300  ..........      -3,000
Satellite Control Network [Note: The conferees direct the Air                                                   
 Force to use unobligated fiscal year 1995 funds allocated for                                                  
 special projects to fund fiscal year 1996 general program                                                      
 requirements.].................................................      89,717      82,717      84,617      84,617
Space Track.....................................................      35,583      35,583      57,883      58,383
    Air Force Maui Optical Station..............................  ..........  ..........      +5,300      +5,300
    Advanced Electro-Optical System (AEOS)......................  ..........  ..........     +17,000     +17,000
    AEOS Site Characterization..................................  ..........  ..........  ..........        +500
Defense Support Program [Note: The conferees direct that the                                                    
 reduction shall only be assessed against engineering change                                                    
 orders and management support.]................................      43,672      43,672      37,441      37,441
----------------------------------------------------------------------------------------------------------------
               space based infrared architecture--DEM/VAL
      The conferees agree to provide $265,744,000 for the 
demonstration/validation stage of the space based infrared 
architecture program, an increase of $135,000,000 to the budget 
request. The conferees have agreed to provide the additional 
$135,000,000 to accelerate development of the space missile 
tracking system (SMTS), formerly known as Brilliant Eyes. The 
additional funds provided for the program shall be used only 
for efforts identified jointly by both the Ballistic Missile 
Defense Organization and the Air Force to accelerate the 
deployment of SMTS.
                                  b-1b
      The conferees agree to provide $202,438,000 for the B-1B 
upgrade program, an increase of $28,600,000 to the budget 
request. The additional funding includes an increase of 
$7,000,000 for B-1B JDAM integration, an increase of $6,600,000 
for ECM risk reduction activities, and $15,000,000 for efforts 
to equip the bomber with precision guided munitions, including 
the B-1B virtual umbilical demonstration (BVUD). The conferees 
agree that none of the funding used for BVUD may be obligated 
until the Commander of the Air Combat Command and the Air Force 
Director of Operational Requirements certify to the 
appropriations committees that (a) a documented requirement for 
BVUD exists; and (b) that BVUD will be incorporated as part of 
the B-1B conventional upgrade program.
      The conferees also direct that the Commander of the Air 
Force Operational Test and Evaluation Center provide a report 
no later than March 15, 1996 on the test and evaluation plan 
for BVUD and other precision guided munitions demonstrations. 
Finally the conferees direct the Department of the Air Force to 
consider other available alternatives to providing precision 
guided capability for the Mk-82 munition with the additional 
funding provided.
                                  c-17
      The conferees agree to provide $73,803,000 for continued 
development of the C-17 advanced transport aircraft, a decrease 
of $11,950,000 to the budget request. The conferees direct that 
these funds be allocated as follows: flight test support, 
$17,850,000; T-1 refurbishment, $11,700,000; aircraft 
structural integrity, $11,000,000; mission support, 
$10,900,000; aircraft armor, $5,000,000; flight test hours, 
$4,000,000; automatic communications processor; $4,000,000; 
station-keeping equipment, $1,300,000; passenger oxygen mask 
improvements, $1,000,000; enhanced aeromedical litters, 
$1,000,000; cargo compartment heating, $600,000; troop seats, 
$553,000; GPS integrity monitoring, $500,000; airlift defensive 
system survivability study, $400,000; signature reduction 
study, $400,000.
      The conferees agree with Senate's direction regarding 
crew armor.
                sensor fuzed weapon product improvement
      The House and Senate both included $10,000,000 in their 
respective bills to begin a product improvement program for the 
Sensor Fuzed Weapon (SFW). The conferees direct the Air Force 
to program those funds required in the outyears to complete 
development of these improvements. Currently programmed SFW 
production funds shall not be used as a source for the required 
development funds. The conferees strongly urge the Air Force to 
begin this development as soon as possible and to examine ways 
to streamline and shorten the effort.
      The conferees also agree with the Senate requirement for 
a reevaluation, to be submitted no later than May 1, 1996, of 
total inventory needs for smart munitions.
             joint surveillance/target attack radar system
      The conferees agree to reduce the budget request for 
Joint Surveillance/Target Attack Radar System (JSTARS) 
procurement by $17,200,000 and for development by $12,000,000. 
The conferees agree to add $4,500,000 in development funds for 
the NATO Alliance Ground Surveillance (AGS) program and to add 
$20,000,000 in development funds for data link/dissemination 
technologies. An amount of $6,100,000 in procurement funds is 
available only to pay over and above expenses for repair 
actions during aircraft refurbishment. The conferees direct the 
Air Force to report to the Committees on Appropriations no 
later than 30 days after the enactment of this Act as to how 
the reductions have been allocated. If necessary to accommodate 
the impact of these reductions, the Air Force is encouraged to 
submit a reprogramming request in a timely manner.
      The conferees agree with the Senate requirements 
regarding the AGS program.
                             b-52 squadrons
      The conferees agree to provide $21,005,000 for B-52 
development, an increase of $4,500,000 to the budget request. 
The additional funding is only for integration of the AGM-130 
munition onto B-52 bombers. The conferees direct that not more 
than $1,000,000 may be obligated until the Secretary of the Air 
Force certifies that there is a validated operational 
requirement for the weapon and reports to the Committees on 
Appropriations about the annual and total costs, schedule, 
technical risks, and operational considerations of such 
integration.
                 joint-air-to-surface standoff missile
      The conferees agree to provide $25,000,000 to initiate 
the Joint-Air-to-Surface Standoff Missile (JASSM) program. The 
conferees agree to the Senate requirements regarding a report 
and a cost and operational effectiveness analysis. However, the 
Senate proposed obligation restrictions are not required. The 
required report is due no later than June 1, 1996.
                      threat simulator development
      The conferees direct that none of the funds available for 
the Real-Time Electromagnetic Digitally Controlled Analyzer and 
Processor (REDCAP) may be used to fund any activities which 
would produce permanent improvements which could not be 
relocated in accordance with the Base Realignment and Closure 
(BRAC) decision to move this facility.
        Research, Development, Test and Evaluation, Defense-Wide
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE:                                                                       
    DEFENSE RESEARCH SCIENCES...................................      89,732      84,732      86,332      81,332
    UNIVERSITY RESEARCH INITIATIVES.............................     236,165     221,165     231,165     231,165
    FOCUSED RESEARCH INITIATIVES................................      14,009       9,009  ..........       9,009
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................      23,947      28,547      23,947      28,547
    COUNTERPROLIFERATION SUPPORT................................       9,952      14,452       9,952      14,452
    MEDICAL FREE ELECTRON LASER.................................      13,258      13,258      26,258      26,258
    LINCOLN LABORATORY RESEARCH PROGRAM.........................      19,903      10,000      19,903      12,903
    COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY.............     403,875     402,876     372,525     392,325
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....................      60,665      84,165      58,515      68,515
    TACTICAL TECHNOLOGY.........................................     113,168     132,168     117,718     130,718
    INTEGRATED COMMAND AND CONTROL TECHNOLOGY...................      48,000      50,000      48,000      50,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........................     226,045     236,045     235,145     248,145
    DEFENSE NUCLEAR AGENCY......................................     219,003     231,703     237,003     237,703
    DEFENSE HEALTH RESEARCH AND DEVELOPMENT.....................  ..........  ..........     120,000      20,000
    NATIONAL MISSILE DEFENSE--DEM/VAL...........................     370,621     820,621     670,621     745,621
    CORPS SURFACE-TO-AIR MISSILE--TMD--DEM/VAL..................      30,442      20,442  ..........      20,442
    SUPPORT TECHNOLOGIES/FOLLOW-ON TECHNOLOGIES--ADVANCE........      79,387      79,387     149,387     129,387
    OTHER THEATER MISSILE DEFENSE/FOLLOW-ON TMD ACTIVITIES......     460,470     423,470     475,470     438,470
    BALLISTIC MISSILE DEFENSE RDT&E PROGRAM MANAGEMENT..........     185,542     165,542     155,542     155,542
    PATRIOT PAC-3 THEATER MISSILE DEFENSE ACQUISITION--EM.......     247,921     247,921     352,421     352,421
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD--EMD.........  ..........      50,000  ..........  ..........
    NAVY LOWER TIER ACQUISITION EMD.............................     237,473     282,473     282,473      97,473
    NAVY LOWER TIER ACQUISITION DEM/VAL.........................  ..........  ..........  ..........     185,000
    COUNTERTERROR TECHNICAL SUPPORT.............................      12,044      24,044      12,044      18,244
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......................      55,331      55,331      65,331      65,331
    ASAT PROGRAM................................................  ..........  ..........      30,000      30,000
    JOINT DOD-DOE MUNITIONS TECHNOLOGY DEVELOPMENT..............      16,799      16,799      21,799      21,799
    EXPERIMENTAL EVALUATION OF MAJOR INNOVATIVE TECHNOLOGIES....     618,005     671,006     576,405     613,705
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--ADVANCED DEV.......      25,684      38,284      21,686      35,684
    ADVANCED SUBMARINE TECHNOLOGY...............................       7,473      30,473      13,973      30,473
    DEFENSE REINVESTMENT........................................     500,000  ..........     238,000     195,000
    STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM....................      58,435      58,155      58,435      58,155
    JOINT TECHNOLOGY INSERTION PROGRAM..........................       4,976       4,976  ..........       3,476
    CALS INITIATIVE.............................................       6,545       6,545      25,745      25,745
    COOPERATIVE DOD/VA MEDICAL RESEARCH.........................  ..........  ..........      25,000      25,000
    ADVANCED ELECTRONICS TECHNOLOGIES...........................     419,863     434,863     388,718     422,660
    SEMICONDUCTOR MANUFACTURING TECHNOLOGY......................      89,554  ..........      89,554      39,000
    MARITIME TECHNOLOGY.........................................      49,657      63,957      49,657      49,657
    ELECTRIC VEHICLES...........................................  ..........  ..........      15,000      15,000
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..................      63,251      32,251      59,851      38,609
    HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM............      89,682      89,682     119,682     119,682
    INDUSTRIAL PREPAREDNESS MANUFACTURING TECHNOLOGY............       7,007       7,007  ..........  ..........
    JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...................      30,675      30,675      18,775      30,675
    JOINT ROBOTICS PROGRAM......................................      17,382      22,382      23,115      22,382
    ADVANCED SENSOR APPLICATIONS PROGRAM........................      25,923      35,923      25,923      25,923
    NATO RESEARCH AND DEVELOPMENT...............................      45,642  ..........      28,500      23,500
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--DEM/VAL............      32,461      36,861      29,661      34,061
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD................      95,324     107,324      91,617      91,617
    GENERIC LOGISTICS R&D TECHNOLOGY DEMONSTRATIONS.............      16,800      16,800      12,300      12,300
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....................      39,302      24,302      24,372      34,302
    TECHNICAL ASSISTANCE........................................       4,927       4,927  ..........  ..........
    SMALL BUSINESS INNOVATIVE RESEARCH ADMINISTRATION...........       1,574       1,574  ..........       1,574
    DEFENSE SUPPORT ACTIVITIES..................................      14,752      14,752      17,752      17,752
    COUNTERDRUG INTELLIGENCE SUPPORT............................  ..........  ..........       7,000       7,000
    INDUSTRIAL PREPAREDNESS.....................................  ..........  ..........       7,007       7,007
    INFORMATION SYSTEMS SECURITY PROGRAM........................      23,884      23,884      17,414      17,414
    DMA MAPPING, CHARTING, AND GEODESY (MC&G) PRODUCTIONS.......      80,131      80,131      92,745      74,745
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.....................     515,148     612,048     391,148     604,448
    C\3\I INTELLIGENCE PROGRAMS.................................       7,907       7,907       9,907       9,907
    SPECIAL OPERATIONS ADVANCED TECHNOLOGY DEVELOPMENT..........      13,288      14,788      19,288      15,788
    SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT.............     101,602     105,602     109,895     112,395
    CLASSIFIED PROGRAMS.........................................   1,194,090   1,188,421   1,227,090   1,225,601
----------------------------------------------------------------------------------------------------------------
                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences....................................      89,732      84,732       86,332       81,332 
    Authorization adjustments................................  ..........      -5,000   ...........      -5,000 
    Material Sciences--Bioremediation........................  ..........  ...........      -3,400       -3,400 
University Research Initiatives..............................     236,165     221,165      231,165      231,165 
    Authorization adjustment.................................  ..........  ...........     -15,000   ...........
    Combat readiness research................................  ..........  ...........     +10,000      +10,000 
    DEPSCOR..................................................  ..........     +20,000      (20,000)     +20,000 
    Reduction................................................  ..........     -35,000   ...........     -35,000 
Focused Research Initiatives [Note: The conferees agree to                                                      
 provide $9,009,000 for Focused Research Initiatives. The                                                       
 conferees agree that priority should be given to new                                                           
 materials research and continuing programs already initiated                                                   
 in conjunction with the National Medical Technology                                                            
 Testbed.]...................................................      14,009       9,009   ...........       9,009 
    Program reduction or deferral............................  ..........  ...........     -14,009   ...........
Computing Systems and Communications Technology..............     403,875     402,875      372,525      392,325 
    Planning and decision aids...............................  ..........  ...........      -3,200   ...........
    Human computer interaction...............................  ..........  ...........      -6,100   ...........
    Evolutionary design of complex software..................  ..........  ...........      -4,000   ...........
    High Performance Computing Defense Info enterprise.......  ..........  ...........     -24,800   ...........
    Defensive Information Warfare............................  ..........  ...........      -5,000       -5,000 
    Interoperative Intelligent Metacomputing Testbed.........  ..........  ...........      +8,000       +8,000 
      [Note: The conferees agree with the Senate direction and further direct that the facility be              
located in close proximity to the Department of Defense headquarters and ARPA.]                                 
    Asset Source for Software Engineering Technology.........  ..........  ...........      +3,750       +3,750 
    Nuclear Monitoring Technology............................  ..........     +11,000   ...........     +11,000 
    Software Managers Network................................  ..........     +10,000   ...........      +6,000 
    Natural Language Text....................................  ..........      +5,000   ...........      +5,000 
    Global Broadcast Service.................................  ..........      +8,000   ...........      +8,000 
    Seismic Monitoring Research..............................  ..........     -10,000   ...........  ...........
    High Performance Computing...............................  ..........     -25,000   ...........     -35,000 
    Program Reduction........................................  ..........  ...........  ...........     -13,300 
Chemical and Biological Defense Program......................      60,665      84,165       58,515       68,515 
    House Authorization Increase.............................  ..........     +23,500   ...........     +10,000 
    Nonmedical chem/bio defense and gen/investment...........  ..........  ...........      -2,150       -2,150 
Tactical Technology..........................................     113,168     132,168      117,718      130,718 
    Tactical Landing System..................................  ..........      +7,000       +6,450       +6,450 
    Multiple Object Tracking Sensor System...................  ..........      +7,000   ...........      +7,000 
    Simulation Based Design..................................  ..........      +5,000   ...........      +5,000 
    Naval Warfare Technology.................................  ..........  ...........      -4,000       -3,000 
    Aglie Warrior............................................  ..........  ...........      -4,900       -4,900 
    Center of Excellence for Research in Ocean Sciences......  ..........  ...........      +7,000       +7,000 
Integrated Command and Control Technology....................      48,000      50,000       48,000       50,000 
    Digital Camera...........................................  ..........      +2,000   ...........      +2,000 
    Field Emission Display [Note: The conferees agree that                                                      
     $5,000,000 is to be made available only for plasma                                                         
     enhanced chemical vapor deposition equipment and for                                                       
     development of manufacturing systems in a cluster tool                                                     
     format specifically tailored for field emission display                                                    
     (FED) production.]......................................  ..........  ...........  ...........      (5,000)
Materials and electronics technology.........................     226,045     236,045      235,145      248,145 
    High Temperature Superconducting Materials...............  ..........     +10,000   ...........     +10,000 
    LSTAT....................................................  ..........      (4,000)      (3,000)      (3,000)
    Joint LSTAT requirement..................................  ..........        (500)        (500)        (500)
    Materials and Processing Technology......................  ..........  ...........      -8,900       -4,900 
    Military Medical/Trauma Care Technology..................  ..........  ...........  ...........  ...........
        2-D Ultrasound.......................................  ..........  ...........      -3,500       -1,000 
    Healthcare and Information infrastructure................  ..........  ...........      -3,000       -3,000 
    Thermal Diamond Management...............................  ..........  ...........     +14,500      +11,000 
    Cryogenic Electronics....................................  ..........  ...........     +10,000      +10,000 
Defense Nuclear Agency.......................................     219,003     231,703      237,003      237,703 
    High Power Microwave Technology..........................  ..........      +4,700       +4,000       +4,700 
    Counterterrorist Explosive Research......................  ..........      +4,000   ...........      +4,000 
    Radiation Hardened Electronics...........................  ..........     (15,000)  ...........     (15,000)
    Environmental Pollutants.................................  ..........  ...........      (5,000)      (5,000)
    Thermionics..............................................  ..........  ...........     +10,000      +10,000 
Defense Health Research and Development......................  ..........  ...........     120,000       20,000 
    Breast Cancer Research...................................  ..........  ...........    +100,000   ...........
    AIDS Research............................................  ..........  ...........     +20,000      +20,000 
Other Theater Missile Defense/Follow-on TMD Activities.......     460,470     423,470      475,470      438,470 
    Reduction................................................  ..........    -37,0000   ...........     -37,000 
    UAV/Boost Phase Interceptor..............................  ..........  ...........     +15,000      +15,000 
    Kauai Test Facility......................................  ..........  ...........      (3,000)      (3,000)
Counterterror Technical Support..............................      12,044      24,044       12,044       18,244 
    Pulsed Fast Neutron Analysis.............................  ..........     +12,000   ...........      +6,200 
Experimental Evaluation of Major Innovative Tech.............     618,005     671,005      576,405      613,705 
    MOBA.....................................................  ..........  ...........      -9,500       -9,500 
    Command and Control Info Systems.........................  ..........  ...........     -11,100      -11,100 
    Guidance Tech--Sharpshooter..............................  ..........  ...........     -13,700      -13,700 
    Advanced Simulation: Synthetic Theater of War............  ..........  ...........      -3,000       -1,000 
    Advanced Simulator Technologies..........................  ..........  ...........      -9,700       -5,000 
    Critical Mobile Targets..................................  ..........  ...........     -10,000      -10,000 
    Pacific Disaster Center..................................  ..........  ...........      +6,000       +6,000 
    Two Megawatt direct fuel cell powerplant.................  ..........  ...........      +9,400       +7,000 
    Shallow Water ASW........................................  ..........      +5,000   ...........      +5,000 
    Classified Programs......................................  ..........     +35,000   ...........     +10,000 
    Small Satellites.........................................  ..........      +1,000   ...........      +1,000 
    Safety and Survivability.................................  ..........      +2,000   ...........      +2,000 
    GEOSAR...................................................  ..........     +10,000   ...........     +10,000 
    Crown Royal..............................................  ..........  ...........  ...........      +5,000 
    Strategic Packaging for Single Multi-Chip Modules [Note:                                                    
     The conferees agree to provide $2,000,000 only for                                                         
     Strategic Packaging for Single and Multi-chip Modules.].  ..........  ...........  ...........      (2,000)
    Deep ocean relocation of coastal and harbor sediments                                                       
     [Note: The conferees agree to provide $2,500,000 only                                                      
     for the continuted study of deep ocean relocation of                                                       
     coastal and harbor sediments leading to a demonstration                                                    
     and validation of viable relocation and environmental                                                      
     monitoring technology.].................................  ..........  ...........  ...........      (2,500)
    Large Millimeter Wave Telescope..........................  ..........  ...........      (3,000)      (3,000)
Chemical and Biological Defense Program--Advanced Development      25,684      38,284       21,688       35,684 
    House Increase...........................................  ..........     +12,600   ...........     +10,000 
    Chem/bio defense advanced tech demo......................  ..........  ...........      -3,998   ...........
Advanced Submarine Technology [Note: $7,000,000 of submarine                                                    
 technology is for project M.]...............................       7,473      30,473       13,973       30,473 
    Submarine Technology.....................................  ..........     +23,000   ...........     +20,000 
    Active Structural Control................................  ..........  ...........      +3,000       +3,000 
    Integrated, passive, topographic navigation..............  ..........  ...........      +3,500           +0 
Cooperative DoD/VA Medical Research..........................  ..........  ...........      25,000       25,000 
    Core Program.............................................  ..........  ...........     +20,000      +20,000 
    Spinal/Brain research [Note: The conferees agree to                                                         
     provide $5,000,000 to complete the efforts initiated in                                                    
     1992 for the Department of Defense Military Medical                                                        
     Personnel Collaborative Spinal Cord Injury, Paralysis,                                                     
     Neuroscience Research, Education and Training Center.]..  ..........  ...........      +5,000       +5,000 
Advanced Electronics Technologies............................     419,863     434,863      388,718      422,660 
    Focus Hope/U.S. Japan Management Training................  ..........  ...........     -23,642   ...........
    CALS/Electronic Resource Centers.........................  ..........  ...........      -6,000   ...........
    Manufacturing Technology Applications--Advanced                                                             
     Multimissile Manufacturing..............................  ..........  ...........     -10,000      -10,000 
    Electronic Module Technology: Rapid acquisition of                                                          
     application specific signal processors technology base                                                     
     efforts.................................................  ..........  ...........      -3,100       -3,100 
    High Density Microwave Packaging.........................  ..........  ...........      -9,100       -2,100 
    Microwave and Analog Front End Technology................  ..........  ...........     -14,300       -7,000 
    Seamless High Off-Chip Conductivity......................  ..........  ...........     +10,000      +10,000 
    Institute for Advanced Flexible Manufacturing............  ..........  ...........      +4,000       +4,000 
    Advanced Lithography.....................................  ..........  ...........     +20,997      +20,997 
    U.S. Japan--Management Training..........................  ..........     -10,000   ...........     -10,000 
    Advanced Lithography.....................................  ..........     +25,000   ...........  ...........
DMA mapping, charting, geodesy production....................      80,131      80,131       92,745       74,745 
    Support and management...................................  ..........  ...........      -5,386       -5,386 
    Classified...............................................  ..........  ...........     +18,000   ...........
Defense Airborne Reconnaissance Program......................     515,148     612,048      391,148      604,448 
    Tier II UAV..............................................      19,950      45,250       19,950       45,250 
    Tier III-UAV.............................................      48,000      83,000       48,000       66,000 
    Maneuver UAV.............................................      36,800      16,800       36,800       26,800 
    U-2 Sensor Upgrades......................................  ..........  ...........      20,000       15,000 
    U-2 Defensive Systems....................................  ..........  ...........      13,000       10,000 
    U-2 General Upgrades.....................................  ..........      15,000   ...........  ...........
    MSAG.....................................................  ..........      12,000   ...........       8,000 
    E/O Framing Sensor.......................................  ..........       8,000   ...........       7,000 
    High Data Rate Laser Com.................................  ..........       5,000   ...........       5,000 
    Common Imagery Ground System.............................      33,833      49,833       38,833       44,833 
Special Operations Advanced Technology Development...........      13,288      14,788       19,288       15,788 
    Integrated Bridge........................................  ..........      +1,500   ...........      +1,500 
    Millimeter Wave..........................................  ..........  ...........      +1,000       +1,000 
    Crown Royal..............................................  ..........  ...........      +5,000   ...........
Special Operations Tactical Systems Development..............     101,602     105,602      109,895      112,395 
    Advanced Seal Delivery System............................  ..........  ...........      +4,000       +4,000 
    SOF surface craft--Navy Boat program.....................  ..........  ...........      +4,293       +4,293 
    Lightweight Strike Vehicle...............................  ..........      +1,500   ...........  ...........
    Full Authority Digital Electronic Control................  ..........      +2,500   ...........      +2,500 
----------------------------------------------------------------------------------------------------------------
      historically black colleges and other minority institutions
      The Department is encouraged to continue its support of 
minority institutions, including Hispanic serving institutions, 
through academic collaborations for research and education 
related to science and technology, relevant to the Department's 
mission.
            computing systems and communications technology
      The conferees agree to provide $8,000,000 for a Global 
Broadcast Service (GBS) as recommended by the House. The 
conferees also agree to the House language directing that the 
GBS initiative is to be managed by the Under Secretary of 
Defense for Acquisition and Technology (USD (A&T)). The 
conferees do not agree to the House language directing that the 
$8,000,000 is to be released to theNavy for a near-term GBS 
pilot program. Instead, the conferees believe that the GBS program must 
address the needs of all of the services and direct the USD (A&T) to 
compete the acquisition of both the near-term and objective GBS. After 
the competition is completed, the Under Secretary of Defense 
(Comptroller) is to certify to the defense committees that $8,000,000 
has been released to the service chosen as executive agent to conduct 
the near-term GBS pilot program. The conferees do agree to the House 
language directing the USD (A&T) to provide to the defense committees a 
long-term master architecture. Additionally, the conferees direct that 
the USD (A&T) provide a comparison of cost, schedule, technical risk 
and operational considerations for several potential GBS host 
spacecraft including UFO follow-on, Milstar, DSCS, classified, and 
commercial satellites with the master architecture.
                   advanced electronics technologies
      The conferees agree with the House report concerning the 
ECRC program and also direct the Department to enter into a 
five-year contract with each of the two system integrators, the 
National ECRC and CAMP, who will continue to manage their 
respective sites.
      The conferees commend ARPA for recent advancements in 
low-cost dense plasma focus x-ray source technology and 0.18 
micron synchrotron-based x-ray technology. The conferees urge 
ARPA to continue efforts in the point source area and direct 
the Agency to allocate $11,000,000 to fund an integrated point 
source x-ray lithography system based on these latest x-ray 
source and stepper developments. This research should target 
defense related applications such as the production of 
Microwave Monolithic Integrated Circuit (MMIC) chips for 
military uses, including missile seekers, digital battlefield 
systems and F-22 radar modules.
                     electronic combat master plan
      The conferees direct the Secretary of Defense to develop 
and provide to the congressional defense committees, no later 
than March 31, 1996, an Electronic Combat Master Plan to 
establish an optimum infrastructure for electronic combat 
assets.
                    strategic target system (stars)
      The conferees agree to provide $10,000,000, the budget 
amount, only to continue planning, preparation and actual 
conduct of STARS flight tests. The conferees direct that BMDO 
take no actions to terminate or place the STARS program in a 
caretaker status.
                naval theater ballistic missile defense
      The conferees believe that the Navy's area wide (Lower 
Tier) and theater wide (Upper Tier) programs should be deployed 
as rapidly as possible. The Navy's current plan to build on 
existing ship platforms, the Aegis system, proven launch 
systems, and the operational Standard missile family has 
resulted in a cost effective, technically capable and 
manageable program that is planned to produce a user 
operational capability (UOES) Upper Tier system not later than 
FY 1999 with an initial operational capability (IOC) by 2001. 
The conferees are committed to a rapid and actual deployment of 
an effective sea-based missile defense system. The conferees 
direct the Department to place highest priority on proceeding 
with a development program that achieves deployment of the Navy 
Upper Tier system by the planned 2001 IOC. The conferees 
endorse the Navy Theater Wide system as a core TMD program and 
endorse fully funding the core program in the 5-year defense 
plan. The conferees direct that not less than $200,442,000 
shall be spent on Navy Upper Tier and not less than 
$282,473,000 on Navy Lower Tier for research and development 
activities. Funding allocations through BMDO to the Navy for 
these programs should proceed expeditiously.
                      tier ii unmanned air vehicle
      The conferees agree to provide $45,250,000 for the Tier 
II (Predator) unmanned air vehicle program, an increase of 
$25,300,000 to the budget request. The conferees also agree 
that the additional funding provided shall only be used for 
attrition replacement air vehicles and shall not be used to 
marinize the Predator air vehicle.
                        rivet joint re-engining
      The conferees have provided $79,000,000 solely for the 
purpose of initiation of re-engining the Rivet Joint fleet. The 
conferees direct that future funding for this project be 
included in budget submissions for fiscal year 1997 and beyond, 
thus ensuring completion of this project in an expeditious and 
cost effective manner.
                        USH-42 Mission Recorder
      The conferees agree that from funding provided in fiscal 
year 1996 for the Defense Airborne Reconnaissance Program, 
$10,000,000 may be used for the planned product improvement 
that will result in a low cost, lightweight, high capacity, 
digital version of the Navy's USH-42 recorder/reproducer 
suitable for a wide range of applications in reconnaissance and 
surveillance platforms.
               Developmental Test and Evaluation, Defense
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
DIRECTOR OF TEST & EVAL DEFENSE:                                                                                
    CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT (CTEIP)..     119,714     119,714     109,714     114,714
    FOREIGN COMPARATIVE TESTING.................................      34,062      34,062      32,453      32,453
    DEVELOPMENT TEST AND EVALUATION.............................     105,565     105,565     103,915     103,915
----------------------------------------------------------------------------------------------------------------
                TITLE V--REVOLVING AND MANAGEMENT FUNDS
      The conferees agree to the following amounts for 
Revolving and Management Funds program:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Business Operations Fund................         878,700       1,573,800       1,178,700         878,700
National Defense Sealift Fund...................         974,220         974,220       1,024,220       1,024,220
                                                 ---------------------------------------------------------------
      Total, Revolving and Management Funds.....       1,852,920       2,548,020       2,202,920       1,902,920
----------------------------------------------------------------------------------------------------------------
                    Defense Business Operations Fund
      The conferees agree to provide $878,700,000 for the 
Defense Business Operations Fund.
                     National Defense Sealift Fund
      The conferees agree to provide $1,024,220,000 for the 
National Defense Sealift Fund.
                     maritime prepositioning ships
      The legislative authority in this Act to procure an 
additional Maritime Prepositioning Ship for up to $110,000,000 
may not be used until a notification has been provided at least 
30 days in advance of release of a RFP under this authority to 
the congressional defense committees on the Department of the 
Navy's intent to use the authority and on identification and 
justification of proposed financing sources.
             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS
      The conferees agree to the following amounts for Other 
Department of Defense programs:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Health..................................      10,153,558      10,205,158      10,196,558      10,226,358
Chemical Agents and Munitions Destruction.......         746,698         746,698         631,698         672,250
Drug Interdiction Defense.......................         680,432         688,432         680,432         688,432
Office of the Inspector General.................         139,226         178,226         139,226         178,226
                                                 ---------------------------------------------------------------
      Total, Other Department of Defense                                                                        
       Programs.................................      11,719,914      11,818,514      11,647,914      11,765,266
----------------------------------------------------------------------------------------------------------------
                         Defense Health Program
                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Medical Programs, O&M...........................       9,865,525       9,917,125       9,908,525       9,938,325
    PACMEDNET...................................  ..............         +16,000         +11,000         +11,000
    Beaumont Army Medical Center Computer                                                                       
     Support....................................  ..............          +1,500  ..............          +1,500
    Currency Fluctuation........................  ..............          +8,100  ..............          +6,900
    Breast Cancer...............................  ..............         +25,000  ..............         +25,000
    American Red Cross..........................  ..............          +1,000         +14,500         +14,500
    Desert Storm Syndrome.......................  ..............  ..............  ..............          +3,400
    USTF........................................  ..............  ..............         -15,900  ..............
    Telemedicine................................  ..............  ..............         +22,900  ..............
    Ongoing Initiatives:                                                                                        
        Brown Tree Snake........................  ..............  ..............          +1,000          +1,000
        Military Nursing........................  ..............  ..............          +5,000          +5,000
        Pacific Island Referral Project.........  ..............  ..............          +2,500          +2,500
        USUHS Graduate School of Nursing........  ..............  ..............          +2,000          +2,000
----------------------------------------------------------------------------------------------------------------
                             breast cancer
      The conferees have provided an increase of $100,000,000 
only for breast cancer. The conferees have provided $75,000,000 
to continue the Army's peer-reviewed research program. In 
addition, the conferees have provided $25,000,000 to the 
Department for: increased recruitment, training and education 
for military cancer specialists; diagnostic equipment and 
improved detection technologies, such as digital mammography; 
and prevention and education efforts for the military 
community.
                         tricare implementation
      The conferees commend the significant progress of the 
Department of Defense in moving toward a nation-wide managed 
health care system for the military, known as TRICARE. Existing 
law mandates that the TRICARE system be implemented by 
September 30, 1996, and the Department has attempted to meet 
this deadline. Unfortunately, complications with the issuance 
and implementation of these large, complex, competitively bid 
contracts, have caused significant problems and associated 
delays. The conferees are concerned that the Department has 
accelerated the process in order to meet this statutory 
deadline. The conferees understand the Department is fully 
committed to the full implementation of TRICARE, as well as a 
standard health benefit for all military beneficiaries, but 
believe that the Department, the offerors, and the 
beneficiaries would greatly benefit from additional time in 
meeting the complex requirements of TRICARE. Therefore, the 
conferees agree to extend the deadline for implementation of 
the TRICARE managed care system by one year.
          uniformed services university of the health sciences
      The conferees remain committed to the continuation of the 
Uniformed Services University of the Health Sciences (USUHS) at 
its current level and direct that, within funds made available 
to the Defense Health program, the amount provided for USUHS 
shall fully fund the programs and functions of the University 
at existing levels.
                       uncompensated health care
      The conferees reiterate their longstanding request for 
DoD Health Affairs to provide data documenting the cost of 
uncompensated care. The conferees note provision of trauma care 
provides DoD physicians and other trauma team members with 
training essential for their wartime performance and hence has 
provided sufficient funds to DoD Health Affairs in this and 
past appropriations to cover the estimated costs incurred in 
the provision of uncompensated care.
           Chemical Agents and Munitions Destruction, Defense
      The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate     Quantity   Conference
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS DESTRUCTION, DEF:                                                                       
    CHEM DEMILITARIZATION--PROC.....................     299,448     299,448     224,448  ..........     265,000
    CHEM DEMILITARIZATION--O&M......................     393,850     393,850     353,850  ..........     353,850
----------------------------------------------------------------------------------------------------------------
         Drug Interdiction and Counter-Drug Activities, Defense
      The conferees agree to provide $688,432,000 as proposed 
by the House instead of $680,432,000 as proposed by the Senate. 
The conference agreement is as follows:
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Military Personnel..............................         152,787         152,787         152,787         152,787
O&M.............................................         422,633         441,633         442,633         440,088
    South Com Radars............................          20,282          21,782          20,282          20,282
    Community Outreach..........................           8,236               0           8,236               0
    CARIBROC Comms..............................             206           1,356             206             206
    Gulf States CI..............................           2,059           3,900           2,059           6,059
    Southwest Border Info System................           4,000           5,545           4,000           4,000
    Civil Air Patrol............................           2,224           3,424           2,224           3,424
Procurement.....................................          48,659          57,659          48,659          59,204
    Southwest Border Info System................           5,265           6,265           5,265           7,810
    Classified Program..........................  ..............           8,000  ..............           8,000
RDT&E...........................................          36,353          36,353          36,353          36,353
                                                 ---------------------------------------------------------------
      Total, Drug Interdiction..................         680,432         688,432         680,432         688,432
----------------------------------------------------------------------------------------------------------------
      The conferees agree to provide $4,000,000 above the 
budget to the Gulf States Counterdrug Initiative, and direct 
that $2,000,000 be provided for the Command, Control, 
Communications and Computer Network and $2,000,000 for the 
Regional Counterdrug Training Academy.
      The conferees have deleted bill language which provided 
$5,000,000 for the conversion of surplus Department of Defense 
helicopters by State and local governments for use in 
counterdrug activities and agree that funding may be requested 
in annual plans submitted by individual states.
      The conferees agree that, if authorized, up to $3,000,000 
in available funds may be used to continue the Community 
Outreach pilot program.
      The conferees agree that, in accordance with normal 
reprogramming procedures, up to $25,000,000 in available funds 
may be used to procure low-energy/backscatter x-ray equipment.
                    Office of the Inspector General
      The conferees agree to provide $178,226,000 for the 
Office of the Inspector General. Of this amount, $177,226,000 
shall be for operation and maintenance activities and 
$1,000,000 for procurement.
                      TITLE VII--RELATED AGENCIES
----------------------------------------------------------------------------------------------------------------
                                                                      Request     House      Senate   Conference
----------------------------------------------------------------------------------------------------------------
Central Intelligence Agency Retirement and Disability System Fund..    213,900    213,900    213,900     213,900
Intelligence Community Management Account..........................     93,283     75,683     93,283      90,683
National Security Education Trust Fund.............................     15,000     15,000      7,500       7,500
Kaho'olawe Island Conveyance and Environmental Restoration Trust                                                
 Fund..............................................................  .........  .........     25,000      25,000
----------------------------------------------------------------------------------------------------------------
               Intelligence Community Management Account
                        environmental task force
      The conferees have provided $15,000,000 to support the 
activities of the task force. Of this amount, $5,000,000 is to 
be used to continue joint United States/Russian efforts in this 
area.
                 National Security Education Trust Fund
      The conferees direct the Director of Central 
Intelligence, in coordination with the NSETF Board, to 
establish criteria and procedures to ensure that all 
individuals accepting fellowships or scholarships from this 
fund meet qualifications for employment by the Department of 
Defense or Intelligence Community. The conferees further direct 
that any recipient must be engaged in a course of study that is 
an identified critical shortage within the Department of 
Defense or the Intelligence Community. Upon meeting these 
requirements, the recipient must agree to serve at least two 
years with the Department of Defense or the Intelligence 
Community or reimburse the U.S. Treasury for the total costs of 
the scholarship or fellowship.
                     TITLE VIII--GENERAL PROVISIONS
      The conference agreement incorporates general provisions 
of the House and Senate versions of the bill which were not 
amended. Those general provisions that were amended in 
conference follow:
      The conferees included a general provision (Section 8005) 
which amends House language on transfer authority to $2.4 
billion.
      The conferees included a general provision (Section 8010) 
which amends Senate language that defines the congressional 
defense committees.
      The conferees included a general provision (Section 8028) 
which amends House language to prohibit the demilitarization of 
certain types of surplus firearms.
      The conferees included a general provision (Section 8045) 
which amends Senate language which earmarks funds for the Civil 
Air Patrol.
      The conferees retained a Senate provision (Section 8046) 
concerning Federally Funded Research and Development Centers 
(FFRDCs).The conferees direct that the restrictions on 
consultants only shall apply to the use of consulting services 
for specific projects undertaken by an FFRDC as part of its 
core mission responsibilities to meet sponsor requirements.The 
restrictions do not apply to administration and management 
functions necessary to operate an FFRDC as an organizational 
entity.
      The conferees included a general provision (Section 8062) 
which amends Senate language that limits payment to Uniformed 
Services Treatment Facilities to $315,000,000.
      The conferees included a general provision (Section 8063) 
which amends House language concerning limitations on U.S. 
support for NATO headquarters operations.
      The conferees included a general provision (Section 8065) 
which amends House language that maintains an expense/
investment threshold of $100,000.
      The conferees included a general provision (Section 8073) 
which amends House language concerning the supercomputing 
capability at various Department of Defense sites.
      The conferees included a general provision (Section 8082) 
which amends House language concerning the establishment of 
field operating agencies.
      The conferees included a general provision (Section 8083) 
which amends Senate language concerning rescission of funds 
from various Procurement and Research and Development programs.
                          rescission of funds
      The conferees agree to rescind excess prior year funds, 
as presented in the following table:
------------------------------------------------------------------------
                                House        Senate         Conference  
------------------------------------------------------------------------
        FISCAL YEAR 1993                                                
PROCUREMENT OF AMMUNITION,                                              
 ARMY:                                                                  
    Armament and retooling                                              
     manufacturing support                                              
     initiative..............        0      -15,000,000                0
                              ------------------------------------------
      Subtotal...............        0      -15,000,000                0
                              ==========================================
      Total fiscal year 1993.        0      -15,000,000                0
                              ==========================================
        FISCAL YEAR 1994                                                
AIRCRAFT PROCUREMENT, AIR                                               
 FORCE:                                                                 
    F-16 production                                                     
     termination.............        0      -49,854,000      -49,854,000
        F-111 claims.........        0       -3,800,000       -3,800,000
                              ------------------------------------------
          Subtotal...........        0      -53,654,000      -53,654,000
                              ==========================================
MISSILE PROCUREMENT, AIR                                                
 FORCE:                                                                 
    GPS on-orbit incentive...        0                0      -16,783,000
                              ------------------------------------------
      Subtotal...............        0                0      -16,783,000
                              ==========================================
RESEARCH, DEVELOPMENT, TEST &                                           
 EVALUATION, ARMY:                                                      
    Triservice standoff                                                 
     attack missile..........        0         -242,000                0
                              ------------------------------------------
      Subtotal...............        0         -242,000                0
                              ==========================================
RESEARCH, DEVELOPMENT, TEST &                                           
 EVALUATION, NAVY:                                                      
    Triservice standoff                                                 
     attack missile..........        0       -4,416,000                0
                              ------------------------------------------
      Subtotal...............        0       -4,416,000                0
                              ==========================================
RESEARCH, DEVELOPMENT, TEST &                                           
 EVALUATION, AIR FORCE:                                                 
    Triservice standoff                                                 
     attack missile..........        0      -46,589,000                0
                              ------------------------------------------
      Subtotal...............        0      -46,589,000                0
                              ==========================================
      Total fiscal year 1994.        0     -104,901,000      -70,437,000
                              ==========================================
        FISCAL YEAR 1995                                                
WEAPONS PROCUREMENT, NAVY:                                              
    Tomahawk contract savings        0                0      -10,000,000
    Harpoon contract savings.        0                0       -2,400,000
    Ordnance support                                                    
     equipment...............        0                0       -2,200,000
                              ------------------------------------------
      Subtotal...............        0                0      -14,600,000
                              ==========================================
SHIPBUILDING AND CONVERSION,                                            
 NAVY:                                                                  
    Outfitting...............        0                0      -55,000,000
    Post delivery (craft                                                
     outfitting, post                                                   
     delivery)...............        0                0      -32,700,000
                              ------------------------------------------
      Subtotal...............        0                0      -87,700,000
                              ==========================================
OTHER PROCUREMENT, NAVY:                                                
    Forklift trucks..........        0       -2,000,000       -2,000,000
    Other supply support                                                
     equipment...............        0       -1,500,000       -1,500,000
    Secure data..............        0       -2,600,000       -2,600,000
    Nucalts..................        0              000       -2,500,000
                              ------------------------------------------
      Subtotal...............        0       -8,600,000       -8,600,000
                              ==========================================
AIRCRAFT PROCUREMENT, AIR                                               
 FORCE:                                                                 
    A-10 modifications.......        0      -46,400,000      -17,500,000
    F-111 claims.............        0       -6,700,000       -6,500,000
                              ------------------------------------------
      Subtotal...............        0      -53,100,000      -24,000,000
                              ==========================================
MISSILE PROCUREMENT, AIR                                                
 FORCE:                                                                 
    Classified programs......        0                0     -120,000,000
    GPS on-orbit incentive...        0                0      -20,978,000
                              ------------------------------------------
      Subtotal...............        0                0     -140,978,000
                              ==========================================
OTHER PROCUREMENT, AIR FORCE:                                           
    Classified programs......        0                0     -180,000,000
                              ------------------------------------------
      Subtotal...............        0                0     -180,000,000
                              ==========================================
RESEARCH, DEVELOPMENT, TEST &                                           
 EVALUATION, ARMY:                                                      
    Triservice standoff                                                 
     attack missile..........        0      -11,156,000       -9,000,000
                              ------------------------------------------
      Subtotal...............        0      -11,156,000       -9,000,000
                              ==========================================
RESEARCH, DEVELOPMENT, TEST &                                           
 EVALUATION, NAVY:                                                      
    Triservice standoff                                                 
     attack missile..........        0      -10,150,000                0
    F-14/JDAM................        0                0       -6,000,000
                              ------------------------------------------
      Subtotal...............        0      -10,150,000       -6,000,000
                              ==========================================
RESEARCH, DEVELOPMENT, TEST &                                           
 EVALUATION, AIR FORCE:                                                 
    Outboard electronic                                                 
     warfare simulator.......        0       -6,000,000       -6,000,000
    Triservice standoff                                                 
     attack missile..........        0       -9,767,000       -1,902,000
                              ------------------------------------------
      Subtotal...............        0      -15,767,000       -7,902,000
                              ==========================================
RESEARCH, DEVELOPMENT, TEST &                                           
 EVALUATION, DEFENSE-WIDE:                                              
    Maritime Technology                                                 
     Office..................  .......  ...............                 
    (Ship Self Defense)......        0                0      -12,000,000
                              ------------------------------------------
      Subtotal...............        0                0      -12,000,000
                              ==========================================
      Total fiscal year 1995.        0      -98,773,000     -490,780,000
                              ==========================================
      Grand total............        0      218,674,000     -561,217,000
------------------------------------------------------------------------
      The conferees included a general provision (Section 8086) 
which amends House language that limits executive compensation 
to $200,000 per year.
      The conferees included a general provision (Section 8088) 
which amends Senate language prohibiting the obligation or 
expenditure of any funds provided in this Act for aid to the 
Government of North Korea.
      The conferees included a general provision (Section 8092) 
which amends Senate language that reallocates funds to cover 
unanticipated shipbuilding cost increases.
      The conferees included a general provision (Section 8099) 
which amends Senate language concerning ball and roller 
bearings manufactured in the United States.
      The conferees included a general provision (Section 8100) 
which amends Senate language to allow for storage and disposal 
of pentaborane.
      The conferees included a general provision (Section 8102) 
which amends Senate language that directs the Department of 
Defense to match disbursement to obligations before the 
disbursement is made.
      The conferees included a general provision (Section 8104) 
which amends House language that prohibits procurement of 120mm 
mortars or mortar ammunition manufactured outside the United 
States.
      The conferees included a new provision (Section 8107) 
that allows the Air Force to modify leases for certain family 
housing units. The conferees direct the Secretary of the Air 
Force to provide a report to the House and Senate Committees on 
Appropriations 30 days prior to the obligation or expenditure 
of any funds pursuant to Section 8107. This report shall 
indicate those proposed accounts or programs that will provide 
the source of funds to finance modification of such leases, and 
the amount to be obtained from each account or program.
      The conferees included a new provision (Section 8107A) 
that extends authorization set forth in Section 2601 of Public 
Law 102-484 (division B) until September 30, 1997.
      The conferees included a general provision (Section 8108) 
which amends House language concerning the lease or charter of 
double hull ships by the Military Sealift Command.
      The conferees included a general provision (Section 8111) 
which amends House language pertaining to the National Training 
Center, and the interim and permanent rotational airhead.
      The conferees included a general provision (Section 8115) 
which amends House language concerning international 
peacekeeping, peace enforcement, and humanitarian assistance 
operations.
      The conferees included a general provision (Section 8117) 
which amends House language regarding the transfer of defense 
articles and services.
      The conferees included a general provision (Section 8119) 
which amends House language on abortion and also included a new 
general provision (Section 8119A) which provides certain 
exceptions for abortions.
      The conferees included a general provision (Section 8122) 
which is intended to ensure that no taxpayer funds be used to 
pay for special executive bonuses triggered by corporate 
mergers. The conferees direct the Department to promptly revise 
its policies and regulations to make it absolutely clear no 
taxpayer funds shall be used to reimburse any contractor for 
special executive bonuses or any other special retention 
incentive payments for executives triggered by a corporate 
merger, acquisition, or any other change in corporate control.
      The conferees included a new general provision (Section 
8124) concerning the participation of U.S. forces in any 
operation in Bosnia-Herzegovina.
      The conferees included a new general provision (Section 
8125) which reduces the appropriation accounts in the Act by 
$832,000,000 to reflect savings from revised economic 
assumptions.
      The Executive Branch Mid Session Review of the budget 
revised the inflation estimate on which the fiscal year 1996 
budget was based downward from its original assumptions. This 
downward revision results in overall savings to the Department 
of Defense and the reduction in this provision reflects those 
savings.
      The conferees included a new general provision (Section 
8126) which makes funds available from the Defense Business 
Operations Fund for termination liability for the VC-137 
replacement aircraft.
      The conferees included a new general provision (Section 
8127) which allows funds to be obligated for payment of 
satellite on-orbit incentives.
      The conferees included a new general provision (Section 
8128) which makes funds available for support of a NATO 
Alliance Ground Surveillance program based on the Joint 
Surveillance/Target Attack Radar System.
      The conferees included a new general provision (Section 
8129) which reduces the funding provided in Title IV, Research, 
Development, Test and Evaluation, by $442,000,000, in order to 
achieve savings in overhead and improve management 
efficiencies. This reduction is to be applied on a pro-rata 
basis by subproject within each R-1 program element as modified 
by this Act, except no reduction may be taken against funds 
made available to the Department of Defense for Ballistic 
Missile Defense.
      The conferees included a new provision (Section 8130) 
that allows the Department of Defense White House 
Communications Agency to provide communications support to the 
U.S. Secret Service.
                   conference total--with comparisons
      The total new budget (obligational) authority for the 
fiscal year 1996 recommended by the Committee of Conference, 
with comparisons to the fiscal year 1995 amount, the 1996 
budget estimates, and the House and Senate bills for 1996 
follow:
New budget (obligational) authority, fiscal year 1995...$241,553,071,000
Budget estimates of new (obligational) authority, fiscal 
    year 1996........................................... 236,344,017,000
House bill, fiscal year 1996............................ 243,997,500,000
Senate bill, fiscal year 1996........................... 242,683,841,000
Conference agreement, fiscal year 1996.................. 243,251,297,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      1995..............................................  +1,698,226,000
    Budget estimates of new (obligational) authority, 
      fiscal year 1996..................................  +6,907,280,000
    House bill, fiscal year 1996........................    -746,203,000
    Senate bill, fiscal year 1996.......................    +567,456,000
                                   Bill Young,
                                   Joseph M. McDade,
                                   Bob Livingston,
                                   Jerry Lewis,
                                   Joe Skeen,
                                   Dave Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Ernest Istook,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Charles Wilson,
                                   W.G. Bill Hefner,
                                   Martin Olav Sabo
                                           (except to the agreement 
                                               regarding abortion 
                                               funding exceptions),
                                 Managers on the Part of the House.
                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Kit Bond,
                                   Mitch McConnell,
                                   Connie Mack,
                                   Richard C. Shelby,
                                   Judd Gregg,
                                   Mark Hatfield,
                                   Daniel Inouye,
                                   J. Bennett Johnston,
                                   Robert Byrd,
                                   Patrick Leahy,
                                Managers on the Part of the Senate.
                                <greek-d>





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